The implementation of QE in Europe is likely to be accompanied by negative interest rates. For China, on the one hand, the European version of QE will help to alleviate the austerity impact brought by the withdrawal of American QE to some extent. On the other hand, the trend differentiation of monetary policies in major economies will affect the exchange rates among major currencies, aggravate the oscillation of international financial markets, especially foreign exchange markets, and make it more difficult for emerging markets to manage cross-border capital flows and exchange rate expectations.

However, no matter how strict the supervision in China is, some hot money will inevitably flood into China, whether it is formal or illegal. Most importantly, in the face of foreign assets plundered by the devaluation of foreign currency printing, the Bank of China will inevitably use additional issuance to hedge, which is likely to push up prices and inflation. On the one hand, public opinion is full of complaints, on the other hand, domestic and foreign affairs are difficult, and there will be economic stimulus, but we can't predict when and how it will be stimulated.

On the other hand, considering that the US dollar interest rate hike next year is a high probability event, if the central bank cuts interest rates again at this time, it will accelerate the further outflow of the US dollar to a certain extent, which may play a certain neutralization role.

To sum up, if the European Central Bank implements QE, China's economy will be in a dilemma. But the influx of hot money is usually deposited in commercial banks first, so it should be good for the banking industry. However, the speculation of hot money will hit China's real economy, which is not conducive to the overall healthy development of China's economy-FX 678 Financial Channel.