Subsequently, the central bank officials responded quickly to the RMB exchange rate issue, saying that the RMB exchange rate "broke 7", mainly affected by unilateralism and trade protectionism measures and tariff expectations imposed on China. It is normal for the RMB exchange rate to rise or fall, and the foreign exchange market itself will find a balance.
As far as A shares are concerned, the market reaction to today's double "break 7" of onshore and offshore RMB is quite rapid.
Let's look at the performance of the A-share market today.
1. Textile stocks soared
The depreciation of the RMB constitutes a better export component. Generally speaking, textile, household appliances, overseas project construction and overseas business account for a large proportion of the direct benefits from the depreciation of the RMB. Export-oriented clothing, shoes and hats stocks rose sharply this morning. Among them, leading shares in Huafang and Zhongshan textiles rose and stopped; Jiaxin silk and Fengzhu textiles also rose by more than 4%.
2. Aviation shares fell sharply
The rapid expansion of airline operation scale is inseparable from the continuous expansion of financial leverage. Interest expenditure on interest liabilities has become an important expenditure of airlines. In addition, many of the airlines'interest-bearing liabilities are US dollar liabilities. In recent years, airlines'US dollar liabilities have decreased dramatically, but exchange rate changes are still an important factor affecting the airline industry's current profits.
3. Gold Concept Stock Rise
As a result of hedging sentiment, gold concept stocks rose sharply, including Hengbang shares rose more than 9%, Yintai resources, Shandong gold rose more than 6%, Hunan gold, Chifeng gold, Zhongjin gold and so on.
4. Real estate stocks are all green
Following the meeting held by the Political Bureau of the CPC Central Committee on July 30, real estate was not used as a short-term means to stimulate the economy, and real estate stocks have since become a disaster-stricken area. Influenced by the devaluation of the RMB, real estate stocks are even worse. The share prices of leading real estate companies such as Vanke, American Real Estate, Poly Real Estate, Cosco Group and Jinke Stock have declined to varying degrees.
5. The net outflow of funds from the north is nearly 2.2 billion yuan
Because of the recent weakening of the RMB, there has been a continuous net outflow of funds from the north. In early trading today, the net outflow of funds from Beihang was nearly 2.2 billion yuan. If the RMB continues to depreciate in the future, the capital will continue to flow northward.
Thus, the devaluation of the RMB has a great impact on A shares. So what is the relationship between RMB and stock market?
The analysis shows that in most cases, there is a high correlation between the RMB and the trend of A shares. Every depreciation of RMB is accompanied by the decline of A shares or even a big dive. This is because the depreciation of the RMB will lead to a decline in the valuation of local currency assets, leading to the weakening of financial, real estate and other related sectors, dragging down the overall market; on the other hand, once the depreciation of the RMB is expected to form, it will lead to hot money outflow, and the liquidity environment of A shares will rapidly tighten.
So after the devaluation of the RMB, what are the good investment proposals? In fact, the investment value of the US dollar is still high. Given the resurgence of global central bank easing, holding some gold in hand may also be a good choice.