Independent Insight Provider

Hao Wang, CFA

Thematic (Sector/Industry)

China & hong kong / Thematic (Sector/Industry)

<p>The unexpected devaluation of RMB over the past three days has triggered significant debate on what happened, and why it happened and deep repercussion to global markets. But what&rsquo;s next and why? To answer this in short, RMB should be consolidating around 6.4 level in the short term, but is likely to drop further in a much moderate pace in anticipation of FED rate hike this year. This is based on a quick look into the market force, PBoC&rsquo;s intention under the global financial markets context. </p>

The unexpected devaluation of RMB over the past three days has triggered significant debate on what happened, and why it happened and deep repercussion to global markets. But what&rsquo;s next and why? To answer this in short, RMB should be consolidating around 6.4 level in the short term, but is likely to drop further in a much moderate pace in anticipation of FED rate hike this year. This is based on a quick look into the market force, PBoC&rsquo;s intention under the global financial markets context. 

On RMB, what you should know and may expect