Yang Ma is the central bank nicknamed by market participants, that is, the People's Bank of China. In daily life, people are used to calling China People's Bank "Yang Ma" for short. Others refer to CCTV (China Central Television) and Yang Ma. A spokesman for the State Administration of Foreign Exchange said that the continuous decline in the RMB exchange rate was the result of market players' adjustment of the previous RMB trading strategy, which was a normal fluctuation and did not need excessive interpretation.

However, the market still believes that they have seen the figure of "Yang Ma" in this round of RMB depreciation-a nickname recently acquired by the Bank of China. This is a game between the central bank and arbitrageurs. A macro-strategy hedge fund trader told China Business News that the central bank has done a good job this time, and if it continues to weaken, it is estimated that it will trigger a lot of selling.

Yang Ma's Market Reaction

Armitage analyzed that the gradual appreciation trend of RMB in the past and the high interest rate in the onshore market made RMB an arbitrage currency. The history of Japanese yen as the currency of carry trade shows that it is very risky for financial markets.

Carry trade is a way for investors to obtain higher investment returns by financing low-interest currencies and then investing in high-yield assets with high-interest currencies as the target. 1997 before the Asian financial crisis, the yen carry trade prevailed and became a major driver of the financial crisis. The Japanese folk speculative market is active in the "Mrs. Watanabe Group".