A rise in the US dollar index will lead to a fall in the prices of China's gold, oil and other commodities, which will affect the short-term trend of A shares and shrink China's foreign exchange reserves.

In addition, there are the following effects:

1. When large-scale capital flows out, it is bound to be accompanied by selling domestic assets, which will bring about a sharp decline in domestic assets, such as selling real estate and selling stocks.

2. The stock market plummeted, and the depreciation of RMB directly benefited A shares. Part of the funds are withdrawn from the stock market to invest in US dollars, realizing asset appreciation, affecting the liquidity of stock market funds, causing the stock price to fall, and at the same time hitting investor confidence. On the other hand, the depreciation of RMB will increase the market's expectation of domestic interest rate hike to a certain extent, which is also a big negative for the stock market.

Studying abroad and traveling abroad cost more. The depreciation of RMB means that you have to pay more RMB for the same study abroad expenses. The same is true for overseas tourists, who need more RMB.