As 2016 is fast approaching, the future direction of RMB exchange rate is being watched closely by the market.

Currently, the financial market shares the same expectation on the future trend for RMB exchange rate – it is highly like that RMB will depreciate sharply.

ANBOUND's research team points out that as the market is expecting the depreciation of RMB, it is worth to noting that such expectation will amplify the magnitude of the depreciation and this will worsen the market panic.

The relevant departments in China should come out with the policy to tackle such issues and to alleviate the negative market expectation.