China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>The PBOC has set the RMB fix significantly lower at 6.6375/$ which is the biggest one day change in the RMB since August 11.  This is a decidedly unexpected shift and the markets seem to be placing significant pressure on the RMB.  There are a number of key points about today’s fix to consider.</p><p>First, the PBOC could have very plausibly set the RMB at or around the previous close but it decided to fix even lower than the previous close.  This can only be interpreted as, at least for today, a…</p>

The PBOC has set the RMB fix significantly lower at 6.6375/$ which is the biggest one day change in the RMB since August 11.  This is a decidedly unexpected shift and the markets seem to be placing significant pressure on the RMB.  There are a number of key points about today’s fix to consider.First, the PBOC could have very plausibly set the RMB at or around the previous close but it decided to fix even lower than the previous close.  This can only be interpreted as, at least for today, a…

Haitong Securities Co Ltd (A) (600837 CH)

Chongqing Rural Commercial Bank (3618 HK)

Shanghai Pudong Development Bank Co. (600000 CH)

China International Capital Corporation (3908 HK)

China Financial Services Holdings (2980 HK)

China Merchants Securities Co Ltd (A) (600999 CH)

China Pacific Insurance (Group) Co., (601601 CH)

Flying Financial Service Holdings (8030 HK)

China Huirong Financial Holdings (1290 HK)

Changjiang Securities Company (000783 CH)

China Merchants Securities Co Ltd (H) (6099 HK)

Shanghai Stock Exchange Composite Index (SHCOMP INDEX)

Largest Decline in RMB Fix Since August 11