If the RMB is to continue to open and internationalize according to our established strategy, it is a necessary prerequisite to maintain foreign exchange reserves above 2.5 trillion. If it falls below 3 trillion, it will inevitably affect the process of opening up, because once the capital account is opened, a large amount of RMB wealth will flow out, and 500 billion foreign exchange reserves may be digested instantly. It has been calculated that 1 trillion US dollars in foreign exchange reserves is equivalent to 6.6 trillion RMB. According to 5 million houses, there are 654,380+0.32 million houses. Will 3 million people want to sell houses and immigrate? This is very likely, at least many people in the north dare not do it.

Therefore, time waits for no one, and the domestic asset bubble must be brought down before the foreign exchange reserves fall to the warning line. Otherwise, the pressure on foreign exchange reserves will be considerable. If a large amount of capital flows out, the exchange rate will inevitably fall and assets will collapse. At that time, exchange rates, house prices and foreign exchange reserves will not be preserved. It will also affect our entire internationalization process. In fact, the originally agreed QDII2 pilot has been forced to terminate. The main reason is that the gap between domestic and international housing prices is too big, which is really a powder keg.