USDCNH downtrend continues with booming demand for RMB assets
CNH, or known as the offshore Chinese renminbi achieved significant gains since last June as China is the only major economy with positive GDP growth in 2020, due to the well control of the virus.
The Chinese stock market also benefited from this, with CSI300 and shenzhen component soared 27.216 and 38.73% respectively.
With the strong recovery from the crisis, the CNH also posted strong gains against USD with over 10% from late last May.
From the trend perspective, the new lower low created indicate further drop of USD against CNH. This is benefit both the mainland stock market as well as the Hong Kong market.
Chinese companies listed in HK, e.g. Tencent will be chased by foreign and Chinese institutional investors.
The Chinese stock market also benefited from this, with CSI300 and shenzhen component soared 27.216 and 38.73% respectively.
With the strong recovery from the crisis, the CNH also posted strong gains against USD with over 10% from late last May.
From the trend perspective, the new lower low created indicate further drop of USD against CNH. This is benefit both the mainland stock market as well as the Hong Kong market.
Chinese companies listed in HK, e.g. Tencent will be chased by foreign and Chinese institutional investors.
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