Second, it is conducive to the continuous inflow of foreign capital, while indirectly benefiting overseas investment. It will bring huge dividends to the import trade of China enterprises, enable China import enterprises to exchange the same amount of RMB for more foreign exchange and buy more needed raw materials or products, which will help stimulate the import activities of China enterprises, thus better promoting the expansion of production scale and trade recovery of China import and export enterprises and laying a solid foundation for China's economic stabilization and recovery. However, at the same time, it has a great impact on the international trade industry. In this monetary environment, being suitable for import but not for export will lead to the decline of export competitiveness of export enterprises.
Third, it will bring the benefits of stabilizing people's lives, avoiding inflation and improving people's quality of life and happiness index. Because of the continuous appreciation of RMB, it means that the number of RMB issued remains relatively stable, which can avoid the price increase or inflation caused by excessive issuance of RMB, so that people's wealth will not be greatly reduced because of the depreciation of RMB, which is conducive to the domestic people to make good living and investment arrangements, improve their spending power, expand domestic demand, and also bring benefits to people in shopping, traveling and studying abroad. , greatly improve their life happiness index.
1. What is the impact on the stock market?
On the one hand, exchange rate appreciation can further force China enterprises to upgrade their industries.
In the future, further transformation and upgrading of China enterprises will inevitably face the following problems:
_ Under the new pattern of dual-cycle development, solve the problem of excessive dependence on exports;
_ From low value-added and labor-intensive industries to technological innovation and upgrading;
_ Global distribution of outstanding enterprises, from leading enterprises in China to leading enterprises in the world.
The economic environment of RMB appreciation is actually conducive to China enterprises to complete the above-mentioned upgrading and transformation.
On the other hand, the expectation of domestic currency appreciation is conducive to international capital inflows.
No matter from the advantages of China's economic development, or from the current allocation ratio of global asset management companies to China's equity assets (at present, the allocation ratio of China's equity assets is obviously low), the inflow of foreign capital will be the general trend for a long time to come. In this process, the appreciation of RMB exchange rate is very conducive to guiding overseas funds to allocate A-share assets.
At present, it is still the season of global hot money flooding. It will be at least half a year before the Fed tightens QE, and it may be 1.5 years before the Fed raises interest rates. So international hot money is still looking for good assets. If there is a definite wave of RMB appreciation, there will definitely be a batch of hot money flowing into China to speculate on a wave of RMB-denominated assets. The best renminbi-denominated assets are stocks and houses.
There are various restrictions on the sale of houses, and the sale cycle is too long. In addition, the state raises interest rates on the property market in hot cities, so hot money flowing in from abroad generally does not go to the property market unless it is long-term hot money. Therefore, A shares have become the most important choice.
In the last two days, Hong Kong's northbound capital has been obviously heavy, of which it reached 21700 million yuan on May 25th alone. As of the close of May 24 this year, the accumulated net inflow during the northward capital period was 387.074 billion yuan. Among them, the net inflow of Shanghai Stock Connect 167 142 billion yuan, and the net inflow of Shenzhen Stock Connect1993.2 billion yuan.