The impacts of Brexit on the short term RMB exchange rate should not be underestimated.

The research team at ANBOUND Consulting is of the view that RMB is under increased downward pressure but the central bank will stabilize the exchange rate through RMB central parity and direct intervention as well as widening the yuan's trading band against USD to reduce the market expectation on unilateral yuan depreciation as well as reducing market panic.

China has the condition to create a large and stable market and makes yuan the safe haven for international capital.