Chinese stocks recouped early losses on Monday but gains were capped by fears that Beijing would let the yuan depreciate further, despite statements from the central bank last week that it sees no reason for more declines. “We believe the renminbi will still face further depreciation pressure as the weak economic environment warrants further monetary easing measures, while the U.S. interest rate hike is likely to come as soon as next month,” Alex Fan, a research director at GF Securities wrote in a research note.