The central bank clarifies its policy stance on the RMB exchange rate. China's exchange rate regime features three key characteristics: the central bank does not set a specific target level for the exchange rate, does not intervene in its long-term trend, and maintains exchange rate flexibility with two-way fluctuations.

Recently, international public opinion has focused extensively on the renminbi exchange rate, with some voices linking it to global trade imbalances. On October 8, the People's Bank of China issued a policy statement on the renminbi exchange rate, emphasizing that China operates a managed floating exchange-rate regime based on market supply and demand, with reference to a basket of currencies, and that the market must continue to play the decisive role in determining the exchange rate. There is no simple linear relationship between the exchange rate and the current account. Global economic imbalances are closely linked to the evolution of the global division of labor, inherent contradictions within the international monetary system, and the persistent high fiscal deficits and excessive consumption in certain countries, all of which require concerted efforts by all parties to address. "To keep domestic…

Securities TimesOct 9 09:06

Asian FX Trading Strategy: Extend Short EUR/CNH Target and Adjust Stop-Loss

Main pointsThe target price for shorting EUR/CNH has been lowered to 7.40, with the stop-loss adjusted down to 7.68. Since establishing a short position on September 17 at 7.6930, HSBC has decided

CSOPOct 2 23:54

Next market focus after the Fed’s rate hike: Will the Bank of Japan and the Bank of England follow suit?

① In the early hours of Thursday, Beijing time, the Federal Reserve raised interest rates for the first time in more than three years, with Chairman Kazuo Ueda sending hawkish signals, pushing the U.S. dollar index to its highest level since July 31; ② Analysts expect the Bank of Japan to also hike rates to a 31-year high on Friday, and the policy signals that Kazuo Ueda delivers at that time will be a key determinant of the yen's future trajectory.

cls.cnSep 17 14:48

A once-in-two-decades event! The three major central banks of the U.S., Europe, and Japan may raise interest rates in unison—what does this mean?

①This is far more than an ordinary "super central-bank week"—while markets are fixated on shifts in interest-rate levels, a macroeconomic drama unseen for two decades is quietly unfolding; ②The Federal Reserve, the European Central Bank, and the Bank of Japan—the G3 central banks of advanced economies—are, in a rare move, simultaneously embarking on tightening cycles.

CLSSep 14 15:44

A 40 Trillion Debt Overhang! The U.S. Treasury Storm Sweeps the Globe: Can RMB Assets Serve as a Safe Haven? Understanding the Three Underlying Logics

Although the U.S. Treasury suddenly announced this Wednesday an expansion of long-term Treasury buybacks in an attempt to suppress long-term yields through a "borrow short, repay long" strategy, the effect lasted only one day. The yield on the U.S. 30-year Treasury bond rose again to 5.249%, approaching its previous high.

Securities TimesAug 23 15:18

Behind the Rare U.S. Intervention: Propping Up the Yen to Shield U.S. Treasuries, Yet Fundamental Tensions Remain Unresolved

① Early this morning, the U.S. and Japanese finance ministries jointly confirmed conducting their first coordinated foreign exchange market intervention in 15 years to support the yen; ② Industry observers noted that the primary objective of the U.S. intervention was to prevent the Bank of Japan from selling U.S. Treasuries to stabilize the exchange rate, which could otherwise disrupt long-end U.S. Treasury yields.

cls.cnAug 3 13:41