In August last year, the central bank restarted the countercyclical factor to hedge the pro-cyclical sentiment of depreciation, adjusted the foreign exchange risk reserve, and continued to issue central bank bills in Hong Kong this year, all for the sake of long-term institutional arrangements, as well as to stabilize the exchange rate and stabilize the RMB at a reasonable level, at least not to break 7%.
If the RMB breaks 7, it is the same as the current stock market breaking 2440 points. Many people can't accept it and think that a bigger crisis is coming, which may lead to a warming of market panic and an increase in market bearish expectations, which will lead to greater uncertainty risks, which is obviously unwilling to be foreseen by the central bank.