On August 11th and 12th, China’s RMB depreciated for two consecutive days, both by more than 1,000 points. So where are the investment opportunities in the stock market when the RMB depreciates?
Finance Manager will tell you.
For the majority of Chinese people, they don’t seem to care too much about the rise and fall of the RMB. However, whether it is investment or overseas travel, this round of RMB depreciation may have had a great impact on domestic residents' lives and trade. At the same time, for investors, there are also three major investment opportunities: 1. The stocks of export companies may be boosted
Exchange rate fluctuations of a few percentage points may not have such a big impact on ordinary consumers. , but for export companies with an order worth millions of dollars, changes in exchange rates directly affect the company's profits.
Benefiting from this, the stocks of export companies can be widely paid attention to, but it is worthy of investors' attention that due to restrictions such as export quotas, the performance of some garment companies may not improve much.
In addition, due to the impact of the depreciation of the RMB, there may be performance opportunities for stocks in the field of foreign mineral exports and rare earth and non-ferrous metals. 2. The prices of iron ore futures, gold futures, soybean futures, etc. may rise
Since these commodity futures are priced in RMB, if the RMB exchange rate weakens, the corresponding commodity futures prices will strengthen. Due to the impact of industrial chain transmission and inventory digestion, iron ore, soybeans, copper and other futures prices have not yet risen, and precious metal futures prices have also remained stable, worthy of further attention from investors. 3. It’s time to invest overseas
How to resist the depreciation of the RMB? The simplest way is to buy QDII funds. QDII products issued by different institutions also have different strategies. Investors who hold foreign currency assets can also use banks' foreign currency financial products to manage their assets.
In this way, we can not only enjoy the investment income of the fund, but also enjoy the benefits brought by the depreciation of the RMB invisibly.
Considering that the signs of economic recovery in the United States are the most obvious today, purchasing products with the United States as the investment target is also the safest choice. The euro's recent exchange rate trend is sluggish, and it is more likely to strengthen in the future. Therefore, purchasing QDII products that mainly invest in euro zone stocks will also be a good choice.