The Federal Reserve Chair Yellen has earlier issued a statement stating that the United States is losing the momentum to raise interest rates and that there is a high possibility that the interest rate will remain unchanged for a period of time.

ANBOUND's research team believes that the slowdown in the pace of interest rate hikes will alleviate the depreciation pressure faced by RMB and this is conducive to the stabilization of RMB exchange rate while lowering the cost of China’s exchange rate policy and to some extent, this helps to alleviate the trend of capital flight.

In light of the gloomy domestic economic outlook, this move made by the United States is undoubtedly good news to China.