The RMB has reversed and strengthened in recent days. On the 21st, the central parity rate of the RMB against the US dollar was recorded at 7.1406 yuan, an increase of 206 basis points from the previous day.Consider more on internationalinvestInvestors expect FOB price from RMBexchange rateIt rose from the 7.14 yuan mark to a high of 7.1368 yuan, an increase of more than 200 basis points. Analysts believe that this surge in the RMB exchange rate is not over yet.
A-shares and Hong Kong stocks opened higher as the RMB exchange rate strengthened. The ChiNext index rose more than 1%, the Shanghai Composite Index rose 0.62%, the Shenzhen Component Index rose 0.83%, and the BSE 50 Index rose nearly 4%; Hong Kong’s Hang Seng index opened with a gain of 0.87%. As of 10:00 on the 21st, the net flow of northward funds exceeded RMB 5 billion.
The offshore RMB exchange rate against the US dollar has risen for three consecutive trading days, increasing by 0.15%, 0.4% and 0.74% on the 16th, 17th and 20th, respectively; The onshore RMB exchange rate against the US dollar has also increased rapidly. According to the closing price on the night of the 20th, it was trading at 7.1655 yuan, an increase of 1.12%.
Why is the RMB appreciating rapidly in this period?HuataisecurityThe research report noted that in addition to the impact of year-end corporate foreign exchange settlements, US retail and inflation data were lower than expected, the convergence of the China-US interest rate differential, and a confidence boost from China. The consolidation of domestic financial institutions, etc., are the driving forces for the recent appreciation of the offshore RMB.
CICC’s research report believes that changes in the external environment may be a more important reason for the rebound of the RMB exchange rate. The RMB exchange rate is currently in a “post-growth” state and is not strengthening alone. The report also said that the current market trend of the RMB is not over yet, as there are still several key factors supporting the RMB before the end of the year, including seasonal foreign exchange settlement, export recovery and the rise in the US dollar index. There may be further decline.
Great Wall Securities also pointed out that from the overseas perspective, the US Treasury bond yield center is expected to continue to decline. With the fact that China-US relations have entered a new stage, the trend of periodic appreciation of the RMB exchange rate is improving.