Lates News

Guosen Securities research report believes that the recent rapid rise in the Renminbi exchange rate may be related to the relatively weak performance of the US dollar index, market expectations driven by news, and the warming of expectations for the Sino-US negotiations. In the future, the disturbance and support factors of the Renminbi exchange rate appear relatively balanced in the short term, and the Renminbi exchange rate may fluctuate around a new central axis. The central bank's exchange rate policy will focus more on correcting one-sided expectations. The pressure mainly comes from the impact of the US tariffs on China's export fundamentals gradually becoming apparent, which has led to a slight narrowing of the current account surplus and fluctuations in direct investment and securities investment accounts. However, what is more important for the Renminbi exchange rate is the intensity of domestic hedging policies and the progress of Sino-US economic and trade negotiations.