Under the pressure of RMB's fluctuation and capital outflow, Anbound's Chief Researcher Chan Kung reiterates his proposal that China should increase its external bonds particularly in the form of the sovereign bond. Issuing external government bond can hedge the impact of capital outflow consequently stabilizing the exchange rate of RMB. This measure also increases the flexibility of the Central Bank of China. The risk and cost in investing in the government bond will mainly be reflected in the current bond’s rate, subsequently shifting the pressure of the RMB to the bond’s rate.