Three consecutive renminbi price rises against the U.S. dollar release four important signals
In 2017, China's economic growth accelerated for the first time in seven years. In the first two months of this year, China's economy remained prosperous and the PMI index continued to remain high. In February, profits of industrial enterprises continued to maintain a rapid growth of 16.1%. The sound economic fundamentals have enabled the renminbi not only to appreciate against the US dollar, but also the RMB exchange rate index has risen steadily. Again, because the RMB exchange rate is still one of the factors affecting the competitiveness of the Sino-U.S. trade sector, under the background that the competitiveness of China’s export sector is still strong, under the trend of the depreciation of the US dollar, tolerating a certain appreciation of the RMB is to ease the ongoing trade friction between China and the United States. One of the important means of deterioration. Finally, overseas investors sought Chinese crude oil futures, triggering a wave of exchange of dollars into offshore renminbi for investment. The price after the exchange rate is still better than the crude oil futures price in the international market, attracting a large number of crude oil investors from Europe to enter the market. In addition, overseas institutional investors also increased renminbi assets through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. On March 26, the net inflow of funds through Shanghai-Hong Kong Stock Connect was RMB 2.023 billion, and the net inflow of funds through Shenzhen-Hong Kong Stock Connect was RMB 1.817 billion.