Devaluation Of Hongkong Shoes And Clothing Retail Consumption Hit

August 14th, Devaluation of RMB Asian multinational currency chain effect has depreciated, and the consumption of shoes and clothing in Hongkong has been hit. The depreciation of the RMB is a measure that the state can achieve to balance international trade and stimulate the internal economy through monetary policy.

Before the Japanese yen depreciated to stimulate the economy, in addition to attracting a large number of mainland Chinese compatriots to Shopping by Peter It seems that Asian countries have not responded very well. However, the adjustment of RMB exchange rate is much more international, which proves that China is now a big country in the world. The adjustment of its fiscal policy will play a decisive role in Asia and Europe, the United States and even Russia and other countries and regions.

It is widely rumored that the US Federal Reserve Board or the rate hike in September, the people's Bank of China adjusted the exchange rate mechanism at the moment in early August, and the external speculation is more or less targeted. From a macro point of view, devaluation has positive effects on stimulating exports, domestic demand and domestic tourism, but the cost of foreign currency denominated payment is not favorable to the sale of goods or services in the country (for example, the aviation industry). Trump, the Republican presidential candidate, criticized the depreciation of the renminbi and would destroy the United States. Another American Soros said that the move was equivalent to deflation. Strange people seemed to be blind to the earlier depreciation of the Japanese yen.

Sino US trade deficit will expand

It can be understood why Americans react so much that the United States is China's main trading partner. China's exports to the US are commodity prices dominated by daily necessities. The depreciation of the renminbi makes them cheaper in the United States and stimulates the sale of Chinese goods, and at the same time helps to reduce people's consumption. On the contrary, the US has lost the main cost of high-tech products, such as smart phone phones, which are low cost but high priced goods. In fact, some manufacturing and assembly processes have already been carried out in the mainland. The devaluation of the RMB will help reduce some production costs in the mainland of China, but the selling price will be converted into RMB in US dollars. The depreciation of the RMB will make these commodities more expensive and affect their sales. From a national perspective, the devaluation of the currency has led to a reduction in the purchase of imported goods by the Chinese people, or even a reduction in consumption in the field. Instead of being consumed more in the mainland and in the mainland, the currency is not affected by the devaluation of the currency. This is a measure to stimulate domestic demand.

For Hongkong, the devaluation of the Hong Kong dollar and the US dollar is not only due to the reduction of Hong Kong people's interest in the renminbi's return to Hong Kong dollars, especially if the depreciation rate is gradually accumulated to about 10% of the hearsay, the impact will be more obvious. Let's start with the positive side. Most of Hongkong's food, daily necessities and even building materials are all dependent on China's imports. The depreciation of the renminbi can make the mainland's imports cheaper, easing the price rise caused by the appreciation of the renminbi over the years, and lowering the price of building materials is also conducive to the reduction of construction costs. As for the weak side, the consumption of mainland compatriots in Hong Kong has dropped with the "one sign and many lines" instead of "one Monday trip", and the mainland has been fighting corruption and anti corruption. Watch Jewelry Retail sales have already fallen sharply. The depreciation of the renminbi now makes the price of local commodities higher in Hong Kong dollars, and the purchasing power of mainland customers to Hong Kong is decreasing. The overall retail consumption industry will be further hit.

Even the United States will not raise interest rates too much.

As regards the property market, owing to the implementation of various types of stamp duty, the number of people entering Hong Kong in the mainland has now decreased significantly compared with the previous years. Devaluation of RMB The negative impact caused by the drop in purchasing power of buyers from this area is not great. This trend is more noteworthy for some Hong Kong people because of the depreciation of the Renminbi or the choice to spanfer to real estate. On the other hand, perhaps the Federal Reserve will not postpone when to raise interest rates, but even raising interest rates will not add too much, so as not to affect the pace of economic recovery.