RMB Appreciation &Nbsp Quickly; How To Manage Finances

Past ten years

10 thousand when the yuan deposit is fixed on a regular basis, the actual "loss" of the depositor reaches 135~175 yuan.

In the shadow of the currency war, on the one hand,

Exchange rate trend

The US dollar has fallen and the pressure on RMB appreciation has increased.

Insiders say that the United States has regained weak dollar policy, and the US dollar has fallen into a long line depreciation again, and the pressure of RMB appreciation has increased.

Last week, the yuan accelerated its appreciation against the US dollar, thanks to the continued depreciation of the US dollar.

Continuation of the recent upward trend, the RMB to the U.S. dollar exchange rate on Thursday trading day to refresh the 2005 exchange rate reform high point, once again formed a strong growth momentum.

Last week, expectations of the US Federal Reserve or the implementation of quantitative easing policy will continue to keep down the US dollar and push the non US currencies across the board.

The Fed has made clear the weak dollar policy, and the US dollar has apparently restarted the trend of "falling down" before the outbreak of the financial crisis.

Before the outbreak of the financial crisis, the US government has been very strong, but the dollar has been letting the US dollar depreciate. The US dollar index has fallen by 41.34% in the 6 years from 2002 to 2008.

In the case of the dollar's return to the financial crisis, the renminbi may also regain its pace of appreciation before the financial crisis.

In the four months since the resumption of foreign exchange reform in June 19th, the cumulative increase of RMB has reached 2.67%.

According to the news released on October 15th by the world trade organization website, Pascal Rami, director general of WTO, said in a speech to the French Senate on that day that the appreciation of the renminbi will not help solve the so-called trade imbalance problem, nor will it help to reshape the competitiveness of other countries' products.

Lamy takes the electronic product iPod as an example to point out that from the design to the completion of the product, the industrial chain often involves many countries, and "world manufacturing" is more and more, and the manufacture of one country is less and less.

Rami said: "China exports to the United States a set of iPod, the United States Customs will import the value of the whole product (US $150) into the import data, it seems that this product is entirely from China.

In fact, only 10 of US $150 comes from China, and the rest can only be called re exports.

In this regard, Lamy stressed that the innovative countries in the upstream of the industrial chain earned most of the profits, while the downstream manufacturing sectors made the least profit, but the statistics only focused on the final stage of downstream production.

Lamy believes that the wrong statistics cause the Sino US trade to be out of balance. He appealed to adjust the existing statistical standards as soon as possible so as to adapt to the changing situation.

Yao Jian, spokesman of the Ministry of Commerce, said in October 15th that the US side decided that the RMB was undervalued on the basis of the favorable balance between China and the United States, and that it was unreasonable and wrong to try to adopt discriminatory trade protection measures against Chinese products and seriously violate WTO rules.

He said that the Renminbi should not become a "scapegoat" and "lightning rod" for the domestic problems of the United States.

US Treasury Secretary Geithner said in a statement on October 15th that he postponed the international economic and exchange rate policy report, which was originally announced in October 15th.

Geithner said that since China announced the reopening of the RMB exchange rate reform mechanism in June 19th this year, the RMB exchange rate has appreciated 3% against the US dollar so far.

Since September 2nd, the appreciation rate of RMB has accelerated, more than 1% per month.

Geithner said that China will make greater positive contributions to the global economy by making the exchange rate appreciate to reflect the basic economic strength, continue to implement reforms and enhance domestic demand.

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RMB should not be changed into foreign currency, and the stock market can follow.

The future trend of RMB is unpredictable. CPI is also rising. If you put money in the bank, that is to say, your purse will become more and more deflated.

Under such circumstances, how can our citizens ensure that assets will not shrink as far as possible? Listen to the advice of experts.

Renminbi assets are not recommended for us dollar assets.

Fang Fang, vice president of investment in Standard Chartered Bank, said that for people living in China, Renminbi assets are not recommended for foreign currency assets.

Because the trend of a sharp decline in the US dollar will not change for half a year.

If a Chinese citizen who wants to emigrate, because he needs second kinds of currencies and cannot see the possibility of appreciation in the US dollar, it is advisable to make foreign exchange as far as possible.

Beyond the $50 thousand swap limit, banks can buy some funds for overseas market investments.

Large sums of money go to the stock market. Experts suggest that they can follow.

Zhu Yue, an analyst at Goldman Sachs (Asia) limited liability company, said the risk of a hard landing in China's economy is fading.

The policy has begun to relax and possibly continue.

The return of A shares is mainly concentrated at the end of the year, and the uplink space is more than 20%.

Because of the high position of the fund, the lifting of the non tradable shares to the market sentiment and the uncertainty of the high weight plate, the A share index trend may take longer to reverse than the H-share index, but after a period of time, the rebound should be more significant.

The combination of defensive industries and some cyclical industries with low policy risk and high growth rate is most likely to benefit from the relaxation of some industry policies (rather than overall relaxation).

High retail, insurance, industrial, mechanical and building materials industries are recommended.

The stock market investment consultant Gao Chuan theory holds that the market trend is established. From the point of view of plate rotation, the optional sectors are steel, ocean and real estate plates.

ETF fund can be bought to share the feast of commodities.

The surge in demand in China has also pushed up the rise in commodity prices.

The appreciation of the renminbi has also increased China's purchasing power for commodities.

Therefore, regardless of quantity or price, commodities will have considerable investment space in the next six months.

Fang Fang believes that because commodities are priced in US dollars, the US dollar will fall and commodity prices will rise. Therefore, the investment prospect of commodities in the next six months is also promising.

However, the risk of commodity futures speculation is very large. The most feasible way for ordinary people is to invest in commodity linked ETF funds.

Such funds are available in major banks.

Property market encountered regulation to avoid entry in the near future

In the next 12 months, Chinese property developers may face a 10% drop in property prices in major cities.

Despite the volatility and regulatory uncertainty of the industry, the developers themselves seem to be more effective in coping with the current challenges than the market downturn in 2008. Standard & Poor's ratings service has recently released the industry report entitled "China's government to strengthen market regulation and make the real estate industry unpredictable".

Standard and poor's credit analyst Bubei said: "the Chinese government's regulatory policy is designed to prevent soaring housing prices and curb speculative purchases, which will reduce market demand.

At the same time, we believe that a large number of new projects will enter the sales stage, thereby increasing the supply.

Therefore, we believe that in the short term, the average selling price of real estate still has room for downward adjustment.

Nevertheless, many developers have adequate liquidity and have achieved most of the confirmed revenue targets for 2010.

This will reduce the pressure of sharp reduction in housing prices in the short term. "