The US Fed has been sending messages signaling rate hike, resulting in strong US indexes while sending signals of the depreciation of RMB.

This coupled with whether the United Kingdom is leaving the European Union in the end of June have quite some impacts on RMB.

However, having analyzed the situation, we are of the view that the central bank of China is getting better in operating the exchange rate policy and by strengthening the communication with the market; the regulators have avoided unnecessary shocks to market which is beneficial to the guiding of market expectation.