RMB Devaluation: These 8 Kinds Of People Are Suffering Heavy Losses.

The outlook for the US economy is in sharp contrast to China.

The US non farm sector added 321 thousand jobs in November, the largest increase since January 2012, and the strong employment figures made the dollar index unstoppable.

The Federal Reserve's interest rate hike in 2015 has also been further enhanced, which is another important factor leading to the depreciation of the renminbi.

The US economic growth is on the rise, and the return on capital investment is on the rise. China's economic growth is down, indicating that the return on capital investment is decreasing, indicating the direction of exchange rate and increasing the devaluation pressure of RMB.

Analysts say there is still a strong downward pressure on the renminbi in the short term.

The sharp depreciation of the renminbi is expected to have a serious impact on the income of several groups of people.

The first category: shareholders

What is the relationship between RMB devaluation and stock market? Analysts say that in the past, the trend of RMB and A shares is highly correlated.

Under the general trend of RMB appreciation, every devaluation of RMB has been accompanied by the fall of A shares or even plunging sharply.

The reason why the RMB trend is related to the A share market is that, on the one hand, the depreciation of the renminbi caused the valuation of the local currency assets to decline, leading to the weakening of the relevant sectors such as finance and real estate, and dragging the whole market. On the other hand, once the devaluation of the RMB is expected, it will lead to the outflow of hot money, and the liquidity environment of A shares will soon become tighter.

Societe Generale Securities and other agencies report pointed out that the substantial depreciation of the RMB may bring heavy financial burden to the real estate enterprises of aviation enterprises and some overseas financing burdens, which will bring negative effects to the valuation of related stocks and even the price of real estate sales in some regions.

As of March 6th, the unpaid US dollar debt of China's real estate industry reached US $45 billion 900 million, according to the Dealogic market research firm.

Coping strategy: analysts HSBC pointed out that from 2012, defensive industries such as public, telecommunications and medical performance were not affected by macroeconomic uncertainties and currency fluctuations.

The second category of people: housing prices are down, and housing assets will shrink.

There is a "coincidence": the 9 year of the continued appreciation of the renminbi is also the 9 year that China's real estate prices have continued to rise.

In 2005, after the appreciation of the yuan started, there was a clear signal: a long-term appreciation of the US dollar.

That being the case, there will be a large number of US dollars entering China into Renminbi assets to avoid the relative depreciation of the US dollar.

When these dollars enter, they always exist in the form of assets.

The best way to survive is to buy real estate.

There are many reasons for the rise in China's housing prices in the past 9 years, but one of them is the appreciation of the renminbi.

In the process of appreciation, people who own real estate are rapidly appreciating assets.

The expectation of real estate appreciation has stimulated more people's desire to buy houses.

The recent rare depreciation of the renminbi gives a game a feeling of playing a game.

Many investors worry that the devaluation of the renminbi will lead to a reversal of the whole market, prompting investors to gradually abandon the high price of assets such as property.

In particular, the earlier influx of funds from overseas into China will depart from China due to the devaluation of the renminbi, or do not dare to enter the Chinese market any more.

Coping strategy: for the three or four tier cities, the possibility of falling house prices is more likely. At present, it is not suitable to launch. The better way is to wait and see.

For students studying in the United States, the depreciation of the renminbi is also bad news.

This means that the same RMB exchange rate is much less than before.

Bankers say that the sharp fall in the renminbi has also caused panic among some parents of foreign students.

Parents who exchange dollars also spend nearly 10% more than usual.

Coping strategy: group buying and sharing risk. Industry experts suggest that those who use foreign exchange plans in the short term can observe the fluctuation of exchange rate for several days, find a relatively low position, and divide the risk in batches.

Especially those who have plans to study abroad, foreign exchange funds can be used to exchange money for foreign currency management.

The fourth category: Hai Tao: lost.

Overseas purchasing market is hot, and price is one of the key factors.

The price of goods from abroad is generally 30% cheaper than those purchased in domestic counters, and some can even get half the price. This is also the reason why the sea tribe is willing to go far.

However, the depreciation of the RMB made many Hai people feel "loss" because the prices of some overseas commodities they are buying now have begun to rise.

Coping strategy: Silver rate network pointed out that Hai Tao is usually divided into two kinds of settlement methods: foreign currency account and RMB account.

Foreign currency entry means that credit card consumption is settled in foreign currency, and cardholders need to repay in foreign currency. If there is no foreign currency in hand, it is necessary to use Renminbi to purchase foreign exchange for repayment.

If there are enough foreign currencies in the hands of the cardholders, the way of direct repayment of foreign currency does not involve increasing costs.

The fifth category: Outbound Tourists: the cost is high.

According to the current closing price of RMB, it will take more than RMB 1700 yuan to convert 10 thousand dollars before the depreciation of RMB in January.

It will take more than RMB 3100 yuan to exchange 10 thousand euros, and it will take more than RMB 3000 yuan to exchange 10 thousand pounds.

The cost of outbound travel is rising. To travel in Europe, the renminbi is even less valuable.

Coping strategy: first, buying foreign exchange is more cost-effective. The bank financial planner reminds us that many people like to travel abroad for credit card shopping. If the RMB appreciates, they will be able to make less money if they postpone repayment.

However, if the RMB continues to depreciate, it is best to consider all the cash exchanged before going abroad.

In addition, the recent devaluation of Japanese yen is more severe. Travel to Japan will not increase the cost.

The devaluation of the renminbi is theoretically beneficial to exports, and some small export enterprises that can instantly settle foreign currency may benefit from this, but foreign trade enterprises with larger volume of trading may not be able to feel the positive impact of this round of depreciation.

A large exporter said that his company had suffered from exchange rate losses brought about by the rapid appreciation of the renminbi last year, and because it had locked the exchange rate with the banks.

In anticipation of the unilateral appreciation of the renminbi, the large export companies have locked the exchange rate with banks earlier this year, and if they appreciate, they will operate the risk of digestion by banks.

However, after the current turn of the renminbi, the company and the bank settled it to real exchange settlement.

Coping strategies: as exchange rate fluctuations become more and more intense, the risk of future drag is also growing.

In order to reduce the risk of exchange rate fluctuations, foreign trade enterprises need to adopt some foreign exchange derivatives, such as forward settlement, foreign exchange swap, foreign exchange options and other fixed exchange rate risk.

In order to avoid risks, the strategy of import and export enterprises is very simple: as long as the importing enterprises try to postpone the time of foreign exchange purchase, the US dollar will be cheaper than the renminbi.

In recent years, with the steady appreciation of the RMB against the US dollar, these Chinese enterprises have made many Renminbi to ensure stable export earnings, and more enterprises have borrowed money to support the appreciation of the renminbi. Although this has magnified the benefits brought by the appreciation of the renminbi, it has also aggravated the losses caused by the depreciation of the renminbi.

As the renminbi has fallen against the US dollar this year, more and more investors who bet on the appreciation of the renminbi have suffered losses.

Those companies and individuals who hedge the risks of Renminbi by means of "target redemption forward contracts" are huge losses.

A small part of these bets came from private banking clients and rich people.

The eighth category: speculators who come to invest in China: heavy losses

For a long time, a large number of foreign capital have been wandering in China for a long time.

As ye Tan said, "from 2005 to now, you do nothing, you change the US dollar into RMB, now (before depreciation) change to us dollar, appreciate 33%".

You probably heard a joke that an American went to China to eat and drink, and when he left, he changed the rest of his money into dollars.