There Is No Long-Term Appreciation Trend Of RMB.

"The level of RMB internationalization itself is still very limited in terms of trade, and the most important thing in the content of capital liberalization is cross-border direct investment."

Chen Shuang, executive director and chief executive of China Everbright Ltd, said in an interview with the first Financial Daily reporter in Shanghai recently that the proper opening of quota management is the choice of China's current capital account liberalization, which is also a road for the future.

Shanghai Hong Kong Tong has become a very typical event of RMB cross-border direct investment, and its significance is particularly important.

"From an early point of view, it has expanded the trading and commission income of the securities industry, and the valuation of the two markets has been convergent, and domestic enterprises have chosen to go abroad for listing more frequently, which has also solved the problem of financing difficulties for SMEs in the past."

Chen Shuang said that Shanghai and Hong Kong through the current scale of five hundred billion, the market slowly mature, running in and going smoothly, may expand to one trillion, two trillion, until the entire market is completely open, and Shanghai and Hong Kong Tong also provides a template for future capital under the gradual opening of the future, Shanghai and Shanghai, Shanghai and Taiwan may also have such a relationship.

In recent years, the offshore RMB capital pool in Hongkong, China has gained considerable growth, and its deposit size is nearly 1 trillion. Chen Shuang believes that Hongkong, as a major offshore RMB market, has pricing power, thus affecting other offshore markets around the world. Its current market liquidity is fully supported by the two-way flow and payment of Hong Kong and Shanghai issues.

"Liquidity is a technical problem in the past and in the future. The Hongkong monetary authority has been paying more attention to providing liquidity to banks. Now we need to reform or strengthen cooperation with the people's Bank of China in order to supplement the need for liquidity in the market."

As Shanghai and Hong Kong through the current various threshold and paction size control, for the exchange rate risk, Chen Shuang expressed no concern.

"China

In the face of pformation and full opening of capital or massive capital outflow, it is appropriate for China to adopt quota management at this stage.

At the same time, the Fed's interest rate increase has made the US dollar appreciation trend irresistible. In my view, under the current export situation, it is very good for the RMB to maintain a stable two-way fluctuation.

It is worth noting that during the recent period when the US dollar surged against most currencies, the renminbi seemed to "stay out of the country".

Since May, the renminbi has appreciated 1.9% against the US dollar spot exchange rate.

"This does not mean that the renminbi is stronger than the US dollar," Chen Shuang pointed out.

The appreciation is a natural callback after the sharp fall of the beginning of the year. In a sense, it is only part of the two-way fluctuation of exchange rate.

There is no sign of improvement in China's exports for a long time. The long-term trend of RMB appreciation is not there.

Meanwhile,

It is emphasized that the two-way flow of funds and the outflow of foreign investment outflows the introduction of funds. I believe this trend is a long-term trend and the volume will be very large.

The export of the renminbi is also a release for the long-standing inflation problem in the domestic market.

In addition, in solving the problem of RMB reflux in offshore markets, Chen Shuang believes that not only the government needs to be promoted, but also the industry should sing some Renminbi products, including Hong Kong, Shanghai and Hong Kong, and Renminbi bonds, so as to increase renminbi investment opportunities.