Deutsche Bank'S Convertibility Of RMB In China Is Expected To Be Realized.

As to when the renminbi will enter SDR, Deutsche believes that even if the renminbi loses its vote on the SDR currency in October this year, China will continue to apply for accession in 2016. IMF

Deutsche Bank predicts that the possibility of RMB entering the SDR this year will be 40%, and the possibility of it will be expanded to 70% by the end of 2016.

The relevant regulatory authorities announced in March that China will work to achieve RMB convertibility in 2015.

Deutsche Bank believes that this reform is intended to boost the RMB to join the SDR basket.

The International Monetary Fund (IMF) may consider the composition of the SDR currency basket in October this year, so important reforms are expected in the two or three quarter of this year.

Deutsche Bank believes that capital account liberalization will benefit the capital market, RMB and even China's economic development this year.

The report says net capital inflows will push up.

And asset prices of bonds, and promote RMB.

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In terms of macroeconomics, capital account liberalization will trigger other structural reforms to provide more financial support for economic development.

The report also pointed out that although capital account liberalization may exacerbate the shock of cross-border capital flows, the government has fully recognized its risks and may introduce prudent macroeconomic policies to control risks.

Dr Zhang Zhiwei, chief economist of Greater China in Deutsche Bank recently released special

China is expected to achieve RMB convertibility this year, and capital account liberalization is expected to make significant progress in the year, and will lead to net capital inflow in 2015.

The report predicts that the government will introduce important reforms in the two or three quarter of this year to push the renminbi into the SDR basket of currencies. The possibility of RMB being selected for SDR by the end of 2016 will be 70%.

The report points out that the newly established Asian infrastructure investment bank (AIIB) shows China's determination to play a more important role in the international financial system, as well as its wide support from developing countries and developed countries.

Deutsche Bank predicts that China's internationalization of RMB and capital account liberalization will exceed market expectations in the next few years.

Deutsche Bank expects capital account liberalization to make significant progress in the year, but it will not be fully open.

The opening of capital account will result in a net inflow of international capital in 2015. The three reasons are as follows: first of all, foreign investors are facing more barriers than domestic investors.

In view of the limited channels of overseas investment in China's capital market, the gradual liberalization of capital account is expected to lead more capital inflows. Moreover, the government will be cautious at the early stage of capital account liberalization, will prepare policies to prevent destructive capital outflows, and finally, the interest rate spreads between the RMB and the shore will also continue to support capital inflows.

Shanghai and Hong Kong through the paction data after the launch also confirms the capital net inflow situation.