The influence of exchange rate on the securities market is various. Generally speaking, the more open a country's economy is, the more international its securities market will be, and the greater the influence of exchange rate on the securities market will be. Here, the exchange rate is expressed by the local currency value of the unit foreign currency.

1, the exchange rate rises, the local currency depreciates, domestic products are highly competitive, export-oriented enterprises will benefit, and the stock price of enterprises will rise accordingly; On the contrary, the cost of enterprises that rely on imports will increase, profits will be damaged and stock prices will fall.

2. The exchange rate rises and the local currency depreciates, which will cause capital to flow out of the country, and the loss of capital will reduce the demand of the domestic securities market, thus leading to a decline in market prices.

3. The exchange rate rises, the local currency depreciates, and the price of imported goods expressed in local currency rises, which in turn drives the domestic price level to rise, resulting in inflation.

The exchange rate is rising. In order to maintain the stability of the exchange rate, the government may use foreign exchange reserves and sell foreign exchange, which will reduce the supply of local currency and make the stock market price continue to fall until the exchange rate level falls back to an equilibrium level, and negative effects may make the stock price rebound.

When the exchange rate rises, the government may use the joint operation of the bond market and the foreign exchange market to control the exchange rate rise and reduce the money supply, that is, sell foreign exchange and buy back government bonds at the same time, which will increase the market price of government bonds.

From the above theory, we can see that the appreciation of the local currency is good for the securities market, while the depreciation of the local currency is bad for the securities market. Combined with the current situation of RMB exchange rate, the exchange rate factor should be negative to the securities market.