Depreciation Of The Renminbi Is A Good Thing For The Stock Market.

Wednesday night, the United States equity market Another lesson was given to our A shares. Yellen, chairman of the Federal Reserve, said that the US dollar would be raised in the future by reducing QE. It turns out that the currency and stock market will also run in reverse direction. If the RMB depreciates, is it possible for A shares to rise? This column thinks that if the RMB has a certain devaluation trend, A shares are expected to have a rare bull market.

According to the logic of our A share, if the RMB appreciates, we must emphasize that the appreciation of the RMB will drive the stock market up, and then look for the beneficial stocks of RMB appreciation, such as the aviation share plate. Then it is the excitement of investor sentiment that the continued appreciation of the renminbi will push the stock market up to what position, and then the A share market is up or down, basically 55. If it rises, investors owe the appreciation of the renminbi, if the stock market falls, we can find out various reasons. It may be the issue of new shares, or the falsification of the performance of listed companies. If it can not really find the cause, it can also rely on the blank side of stock index futures. In short, in the minds of investors, the appreciation of the Renminbi should push the stock market up.

Is this really true? The US stock market has different understandings. Yellen's speech indicates that the US dollar will remain strong, while the stock market and bond market will fall one after another. exchange rate The rise also triggered a decline in the stock market. Instead, when the US dollar continued to be weak, the stock market continued to be firm and hard. In the end, whether the appreciation of the US dollar was good or bad for the stock market, investors could have their own thoughts.

Now the RMB has entered a two-way channel of depreciation. According to this logic, the stock market should be well supported. Although aviation shares can not benefit from the appreciation of the renminbi, a large number of export enterprises in China can gain more and more profits. China's products will also be more competitive internationally. Because of the decline in China's labor costs due to exchange rate reasons, it will also attract a large number of foreign enterprises relocating to India and Vietnam to return to China. This is certainly a good thing for China's macro-economy. Export growth and foreign investment increase. Our GDP and employment rate will have a beautiful performance.

If China's economy is better, the stock market will naturally get better. If the stock market is better, the issue of new shares will no longer be a pressure but a theme of speculation. All sides will gradually warm up, then talk about property income, investors will not be a joke to listen to.

Of course, not RMB The depreciation will bring the bull market of stock market, and the soft landing of real estate prices is also a crucial link. If housing prices continue to rise sharply or suddenly fall sharply, I am afraid it will be more troublesome.