Friday, December 23, 2016
A Healthier Financial Market Guarantees RMB Exchange Rate
ANBOUND
On China's financial market throughout 2016, RMB against US dollar keeping devaluation is highly concerned by both market and regulator. Regarding the question of how to guard RMB exchange rate in the context of market-oriented reform of RMB exchange mechanism, ANBOUND research team suggests to consider expanding RMB’s needs. On one hand, it helps to absorb the surplus capital on the market; on the other hand, it can stabilize the exchange rate by attracting foreign capital. In detail, the government should expand and optimize the financial market, improve its investment and trade value. Basically, there are two directions: upgrading the security market, and constructing China’s own CDS market.