A Shares Or Pushing The Renminbi Towards A Trough

Beijing time on Wednesday (15 June) at 7 o'clock in the morning, MSCI company managing director and global research director Remy Briand hosted a media conference to announce the delay in the A share.

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The third failure of the MSCI was limited to the expectations of the parties and had little impact on the stock market.

The market has been pushed forward by the "Shenzhen Hong Kong Tong" launch soon. On Wednesday, A shares rose sharply and then rose sharply.

By midday closing, only 13 stocks fell in two cities, of which 82% won the Shanghai stock index.

However, after the news of MSCI's "ten moves and no rejection" of A shares again, the RMB exchange rate against the US dollar crossed the 6.60 line.

Analysts pointed out that the renminbi has further depreciated to 6.70 since then.

Although there may be an official control panel, the RMB exchange rate has rebounded slightly since then, but the market outlook has not changed yet.

Previously released data show that

China's foreign exchange reserves have declined for the first time in 27 billion 900 million months after two months of continuous growth.

Iris Pang, an analyst at the French Foreign Trade Bank, also said: "based on the A share entry," Erice Pang said.

The result of the failure is that the RMB exchange rate against the US dollar will fall below the 6.60 line again on Wednesday night, and the prospect of the future based on Britain's "off Europe" and the anticipation of the Fed's interest rate hike may further pressure the renminbi.

A share has also attracted widespread attention in the case of MSCI being blocked again. Alan von, chief executive of BC Asset Management Co and fund manager of Hongkong Fixed Income Fund (Allen.Feng), said: emerging market index is unlikely to have a strong impact on A shares, but it will really pressurized the renminbi.

Chinese investors all hope that once A shares enter MSCI, they will attract overseas investment institutions to enter China to slow down the capital outflow of enterprises and depositors who are concerned about the depreciation of the renminbi.

However, BC assets believe that foreign investors do not play a decisive role in A shares. On the contrary, the rejection may lead to further devaluation of the renminbi.

Related analysts pointed out that the renminbi is likely to further depreciate to 6.70 against the US dollar, and foreign exchange reserves are declining. Chinese regulators can no longer reduce liquidity share by eliminating capital regulation to boost A shares into MSCI.

Therefore, the renminbi may refuse to pay for joining the MSCI.