This depends on what kind of stocks, such as aviation and real estate, have more foreign capital and enterprises do not rely on exports. Of course, it is a good thing that foreign capital flows in after the exchange rate rises; However, the profits of export-oriented enterprises such as textiles will be greatly reduced after the exchange rate rises, which is of course bad. Take the second question as an example: suppose 1: in 2007, 65438+ 10/USD =7.7 yuan RMB, and in 2008, 65438+ 10/USD =7.3 yuan RMB (RMB appreciates by 5%); Hypothesis 2: The cost of foreign capital entering China for arbitrage is 10% interest (or discount rate) per year; Scenario 3: On June 65,438 438+ 10/October 0, 2008, the rate of return on foreign investment was 65,438+05%, that is, the original RMB in 7.7 yuan became 8.8 yuan (an increase of 65,438+05%); Under the above three assumptions, we can see that on June 65438+ 10 1 in 2008, foreign investors converted the RMB recovered from their investment into US dollars, and how much was it? 8.8 RMB divided by 7.3, when RMB exchange rate = 1.2 USD. If their capital cost (or discount rate) = 0. 1 USD is deducted, their final net profit value is1.2-0.1=1.65438. It can be seen that without the contribution of RMB appreciation, their return can only be 8.8 RMB. After deducting their capital cost of 65,438+00% = 0.65,438+04 USD, their net profit is only 65,438+0.65,438+04-0.65,438 USD. Therefore, for foreign investors, RMB appreciation will bring higher return on investment or lower costs (higher profits).