Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Macroeconomics

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here. <span style='color: black; font-family: "Calibri","sans-serif"; font-size: 14pt; mso-fareast-language: EN-US; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-ansi-language: EN-US; mso-bidi-language: AR-SA;'>Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.

 China’s RMB has just had its largest two-day loss since 2008, and has also fallen a recorddiscount to the central bank’s reference rate (1.89%, nearing the limit of its trading band of 2%). &nbsp;I have recieved several questions on the move in the past 24 hours, specifically around "could we see a material correction to the Rmb." Although&nbsp; i see further downside to the RMB (a further 2-3% against the USD)&nbsp;i do not believe the Chinese government will look to manage down the RMB aggressively.&nbsp;I beleive the government will employ&nbsp;other administrative tools to support the economy, and conceptually there are several reasons why they WOULD NOT want a significant correction from here.   Please see&nbsp;my Q&amp;A below, on the 10 major issues investors having being asking on the RMB outlook.    

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

China

CSSC Offshore and Marine Engineering Group Company Limited manufactures and markets ships, containers, large steel structures, fiberglass boats, high-speed ships, and land use machines. The Company also offers ship polishing, repair and rental services.

Cssc Offshore & Marine Engg Group (317 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CHINA MACRO: My thoughts on the RMB move. Will we see a large correction??

China’s RMB has just had its largest two-day loss since 2008, and has also fallen a record discount to the central bank’s reference rate (1.89%,...

David Millhouse