Offshore RMB exchange rate smashed 6.62

Summary February 3, formed in the interbank foreign exchange trading center in the onshore renminbi exchange rate (CNH) and Hong Kong offshore renminbi (CNH) formed by international investors to trade, devaluation trend. The on-shore RMB exchange rate has fluctuated. As of press time, the US dollar...
On February 3, the onshore RMB exchange rate (CNH) formed at the Inter-bank Foreign Exchange Trading Center and the Hong Kong Offshore Renminbi (CNH) formed by international investor transactions showed a depreciation trend.
The on-shore RMB exchange rate has fluctuated. As of press time, the US dollar against the yuan reported 6.5798, depreciated by 1 basis point.
On the 3rd, after the opening of the onshore RMB market, the offshore RMB rebounded, and then there was a significant decline. As of press time, the US dollar against the RMB exchange rate reported 6.6260, smashing the 6.62 mark.
In the case that the renminbi is not yet fully convertible and there are restrictions on capital projects, the renminbi offshore market and the onshore market are separated, so there is often a price difference. Due to the current trend of the two, the spread has expanded to more than 400 basis points.
In addition, the RMB non-deliverable forward foreign exchange (NDF), which can reflect the future trend of the RMB, has tended to depreciate on the 3rd.
At the news level, the Caixin China Manufacturing Purchasing Managers Index (PMI), released on February 1, recorded 48.4 in January, up 0.2 percentage points from December 2015, and was below the line of demarcation for 11 consecutive months.
In 2015, the fiscal revenue data of various localities were announced one after another. The growth rate of fiscal revenue of most provinces continued to decline, continuing the trend of medium and low growth. Tibet’s fiscal revenue grew at the fastest rate, reaching 31%. The financial revenues of Liaoning, Heilongjiang and Shanxi provinces experienced negative growth. The general public budget revenue of Liaoning Province in 2015 decreased by 33.4%, and the contradiction between fiscal revenue and expenditure was particularly severe.

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