Due to a variety of factors, huge amounts of international capital have been pouring into emerging markets in recent times. However, at the same time, international investors have all been reducing the weighting allocated to China in investment portfolios. The research team at ANBOUND is of the opinion that the problem of high domestic debt has become the main reason why foreign capital is staying away from the Chinese market. This puts tremendous pressure on the RMB exchange rate, and the sudden depreciation of the RMB can easily lead to an economic crisis in China. Therefore, maintaining the basic stability of the exchange rate should be a main focus in the short term, and policies must attach great importance to this key point.