Confident PBoC Signals Yuan Reversal With Fixing Adjustment

Bloomberg: Fixing Tweak Shows China Confident in Steady Yuan, Analysts Say
The yuan may trade more flexibly in the near term because of the change, though authorities won’t hesitate to reintroduce the factor if market volatility increases, economists and strategists say. China’s currency strengthened 6.8 percent against the dollar in 2017 after three years of depreciation.
In other words, "let's see what happens." Because they have no idea if the dollar will continue to weaken or not. This is all window dressing. They're as beholden to the market as everyone else. It's only valuable as a psychological signal. The PBoC put it on at the "worst time" (when it was no longer needed) and they're taking it off right as USDCNY may have double-bottomed.

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