How To Manage Money In The "Pentium Era"

Light deposits, heavy investments, light

After about half a month's callback, the renminbi has entered the rising channel against the US dollar.

RMB appreciated 24% over the past year

Wang Yin, International Business Department of Zhejiang branch of ICBC, said that if the calculation was made since 2005, the appreciation of RMB against the US dollar would be 24%.

"From the objective value analysis, the appreciation of the renminbi means that the votes of the people in their hands are more rigid and more purchasing power. The most direct feeling for us is that we can enjoy more services when we consume foreign money," he said.

According to the introduction, if we travel to the United States for ten days in 2005, we need 25000 yuan, but now the total appreciation of RMB has exceeded 20%. Now it is about 20 thousand yuan.

That year, to study in the United States to spend 300 thousand words, now estimated at 25 million.

In this way, the appreciation of the renminbi has brought some good results.

At the expense level, the appreciation of the renminbi will bring about a decline in the prices of foreign goods, and imported cars, high-end clothing, cosmetics and so on now we can enjoy it at a lower price.

However, between spending and saving money, the vast majority of the citizens are more concerned about the latter. What does the appreciation of the renminbi mean to most people? Wang Yin introduced that because the renminbi is fixed on the dollar, the appreciation of the renminbi means the value of the dollar. If you invest in US dollar products or save us dollars, the annual income is less than 6%, which means the investment in these dollars is actually a loss.

Dollar assets as much as Australian dollars

The appreciation of the renminbi has caused the shrinking of assets in the hands of the people investing in the US dollar.

So, for those people who are worried about loss of interest and how to avoid the risks brought by the appreciation of the RMB, how should we deal with it? Wang Yin believes that the renminbi will continue to maintain an upward trend against the US dollar in the next period of time. Therefore, if we retain a large amount of US dollar assets, we should let the assets shrink, and suggest that the US dollar be exchanged for other currencies, such as the Australian dollar. These two currencies have been appreciating against the RMB this year, or simply make some foreign exchange investments.

Wang Yin analyzed that the trend of the depreciation of the US dollar will continue for some time now, and with the past of the debt crisis in Europe, there will be room for appreciation of the euro and pound. At this time, the US dollar can be converted into euros or sterling.

Guo Jian, general manager of the wealth management department of Pudong Development Bank Hangzhou branch, said that because the gold price in the international market is in reverse operation with the US dollar, it is better to change the US dollar assets into gold investments, gradually change positions when the gold is down, and increase the allocation of gold assets. In addition, investing in B shares is also a good choice, because the appreciation of the renminbi means that the assets denominated in Renminbi are more valuable.

Although B shares are priced in foreign currency, the assets of B-share Companies are denominated in Renminbi, so B shares will be the beneficiaries of RMB appreciation.

Relative to A shares, B shares are still valuable depressions.