After the devaluation of RMB, less RMB-denominated assets (especially stocks) are converted into foreign currency, which does not mean that foreign capital will flee, but to prevent foreign capital from fleeing and stabilize the domestic economy.

The recent devaluation of RMB is external devaluation: because RMB is not a freely convertible currency, the exchange rate level of RMB is external value. The main purpose of RMB depreciation is to promote domestic exports (the export income of export enterprises denominated in foreign currency can be exchanged for more RMB) and increase the competitiveness of export enterprises (the international financial crisis has a great impact on domestic export enterprises, especially on labor-intensive enterprises); The second is to increase the capital flight cost of foreign investment in China (China is the country with the largest amount of foreign direct investment, and the depreciation of RMB means that a certain amount of assets represented by RMB can only be exchanged for less foreign currency), so as to stabilize the domestic economy.