On 8th December, the exchange rate of RMB against dollar has fallen rapidly after the announcement of China export data, which had failed to live up to market's expectation.

The current trend in RMB is very close to the analysis made by ANBUND’s research team. In light of the overall economic downturn in China, the current development in China’s industries and its financial market are not sufficient to support the rise in the RMB exchange rate.

Such trend will continue and RMB will continue to depreciate in the foreseeable future.

We estimate that, given the current overall situation, China’s central bank will not take aggressive intervention policy.