The US Dollar Continues To Weaken Or Affect The Growth Of China'S Stock Market.

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< p > a href= "http://sjfzxm.com/news/index_cj.as" > US dollar < /a > continues to weaken in the international market, resulting in the depreciation of the RMB to other major currencies such as the euro and Japanese yen. This will have a certain impact on China's economy.

The continued decline of the US dollar will also play an important role in the inflation of money supply channels.

The more the dollar falls, the greater the expectation of RMB appreciation. Foreign capital may enter China through various means.

A large number of foreign currencies will be converted into Renminbi, which will cause a large amount of China's basic currency to be put into operation, which will help increase inflation.

It may also affect China's stock market. Now let's get to know.

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< p > < strong > exchange rate, cold and warm import and export prophet < /strong > /p >

< p > in the current trading partners of China, the United States and Japan account for the largest share, followed by the European Union.

Because the renminbi is pegged to the US dollar, the change of exchange rate has little influence on the import and export trade between China and the United States.

The depreciation of the RMB against the US dollar and the euro and yen will have a favorable impact on the import and export trade between China and the EU and Japan through the import and export commodity price effect.

In China's trade with other countries, because in international settlement, the US dollar, yen, euro and other < a href= "http://sjfzxm.com/news/index_cj.as" > international currency < /a > are used mainly. Therefore, the weakening of the US dollar in the international market is also beneficial to China's import and export.

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< p > but < a href= "http://sjfzxm.com/news/index_cj.as" > USD decline < /a > is not unilateral beneficial to China's import and export. We should also see that international raw material prices are basically priced in US dollars. Raw material prices will increase the cost of entry into China's enterprises, and the cost of downstream industries will also gradually follow up, and the prices of Chinese exports will also increase correspondingly.

In addition, the fall of the RMB with the US dollar has also increased the cost of new technologies and equipment that our country urgently needs, which is unfavorable to the upgrading and upgrading of the products.

Yi Xianrong, deputy director of the Financial Research Institute of the Academy of Social Sciences, believes that the depreciation of the US dollar will result in favorable export and unfavorable import conditions, and the overall impact on China's foreign trade will not be great.

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< p > < strong > the weakening of the US dollar affects the number of < /strong > /p >

The change of < p > a href= "http://sjfzxm.com/news/index_cj.as" > exchange rate < /a > is first reflected in the price of import and export commodities, and the change in quantity is different because of different industries.

Therefore, the impact of the fall of US dollar on the cost and income of Chinese enterprises will take some time to fully manifest itself.

As the international money market is changing rapidly and China's recent expansion of the floating range of RMB exchange rate is very high, how much of the impact of the decline in the US dollar exchange rate on China's enterprises will be observed. We must also observe the trend of the US dollar and RMB exchange rate in the future.

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< p > < strong > industry feels cold and hot unequal < /strong > < /p >

< p > we can see the impact of the depreciation of the US dollar on all sectors from the perspective of trade composition.

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< p > China's import and export trade structure currently imports mainly raw materials, such as crude oil, mineral products, grain, petrochemical products and so on, while exports are mainly textiles, electronics, machinery and equipment.

When the US dollar depreciates, the price of raw materials priced in US dollars will rise.

If the price is depreciated in other major currencies, even if the price is unchanged, the price will rise.

If the import price rises, if import elasticity is not large, the cost of import enterprises will be increased.

As China has gradually become the "world factory", and the enterprise has been carrying out extensive production and operation and rigid import of raw materials, it is foreseeable that China's highly dependent on the import of raw materials will be affected by the increase in costs and be adversely affected.

Reflecting the industry, petrochemical enterprises, refining enterprises, food processing industry, metal smelting industry and so on will be directly impacted.

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The same as P, because RMB devaluation with < a href= "http://sjfzxm.com/news/index_cj.as" and US dollar depreciation < /a > will make our export commodities cheaper in the international market when domestic prices remain unchanged, thus making the products of export enterprises more competitive.

China's textiles, clothing, shoes and hats and toys have a high market share in the world. The change in US dollar exchange rate will enable these enterprises to expand their exports and gain greater profits.

In addition, China's electronic products and machinery and equipment and other commodities account for a large proportion of China's exports. Enterprises producing these goods will undoubtedly benefit from the depreciation of the US dollar.

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< p > when the exchange rate falls, there is another noteworthy profitable industry: < a href= "http://sjfzxm.com/news/index_cj.as" > tourism industry < /a >.

Since China experienced "SARS" last year, the tourism industry has entered a period of vigorous development, and the related supporting facilities have been greatly improved, and the external publicity has also been greatly strengthened.

According to past experience, when the local currency falls, the consumption in foreign currency will become cheaper, which may attract more foreign tourists to visit and consume.

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< p > < strong > concern about possible new problems < /strong > < /p >

< p > China's resources are relatively poor, and many raw materials need to be imported. This year, the price of raw materials has risen rapidly due to the depreciation of the US dollar, which has led to the rise in the prices of our means of production.

At present, the prices of service products in downstream products such as water, electricity, coal and pportation are controlled by the government. While other products are restricted by market demand, it is difficult to digest the rising cost through the price increase.

But this situation can not be maintained for a long time. When downstream enterprises can not afford high cost, raising the price of products becomes an inevitable choice, which may cause inflation.

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The continued decline of the US dollar P will also contribute to the generation of "a href=" http://sjfzxm.com/news/index_cj.as "inflation" < /a > from the channel of money supply.

The more the dollar falls, the greater the expectation of RMB appreciation. Foreign capital may enter China through various means.

A large number of foreign currencies will be converted into Renminbi, which will cause a large amount of China's basic currency to be put into operation, which will help increase inflation.

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< p > from the current situation, the US dollar will continue to decline.

If the US dollar continues to fall and fall further, we must also pay attention to the impact of the US dollar depreciation on the stock market if the RMB is not adjusted.

Generally speaking, the inflation rate is very low (such as less than 5%), and the harm is not great, and has a driving effect on the price of < a href= "http://sjfzxm.com/news/index_cj.as" > stock < /a >.

When the inflation rate is higher and continues to a certain stage, the prospects of economic development and price will be unpredictable, and the whole economic situation will become very unstable.

At this time, on the one hand, the development of enterprises will become erratic, and the prospect of new investment will be affected by the unclear profit prospect of enterprises.

On the other hand, the government will raise interest rates, thereby lowering the share price.

Under the combined action of these two factors, the stock price level will decrease significantly.

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