In the process of financial management, we often hear the professional economic terminology of RMB breaking seven. So, what does it mean for the RMB to break seven? What is the impact of RMB breaking seven on the stock market? The following small series has prepared relevant content for everyone's reference.

If the RMB breaks 7, it means that the "FOB" of the RMB against the US dollar exceeds 7, that is, it needs to exceed 7 to be exchanged for 1 US dollar, which means that the depreciation of the RMB and the appreciation of the US dollar will bring some bad effects to China. So, what impact will RMB break 7 have on the stock market?

The depreciation of RMB is bad for the stock market, which will lead to the decline of the stock market, that is, the depreciation of RMB will lead to the worthless RMB. In order to pursue higher returns, international capital will flow out of China market, which will reduce market capital and stock market turnover. At the same time, when the RMB depreciates, the state will adopt a certain tightening monetary policy or tightening fiscal policy, which will reduce the liquidity of the stock market. With the outflow of liquidity, the stock market will fall.

The depreciation of RMB is bad for the whole stock market, but the impact on different industries is different, some are bad and some are good.

Among them, the following industries are better:

1, export trade industry

The depreciation of RMB means that RMB is worthless, other currencies appreciate, and the price of products denominated in RMB drops, which is conducive to exporting foreign trade industries, such as textiles and clothing, toys and household appliances.

2. Industries with high foreign debts

In the case of RMB depreciation, some foreign debts calculated in local currency will rise, which is unfavorable to debtors. Therefore, in the case of devaluation, it is bad for industries with high foreign debt, such as aviation.

3. Chemical industry

The depreciation of RMB will enhance the competitiveness of chemical exports and lead to the rise of stocks in this industry.

4. Port industry

After the export is favorable, it will often lead to the favorable port, and may even stimulate the demand for raw materials and drive the bulk cargo transportation market.

5. Automobile industry

The depreciation of RMB will reduce the price attractiveness of imported cars, or inhibit the further expansion of imported car sales, which is conducive to the development of local cars.

Among them, the following industries are negative:

1, used in import industry.

In the case of people's devaluation, import-oriented industries will increase import costs and indirectly reduce corporate profits, which will lead to the decline of stocks in this industry, such as some transportation, steel and paper industries.

2. For the real estate industry,

The real estate industry is closely related to monetary policy, and the depreciation of RMB will put some pressure on the property market.

3. For the financial industry

The depreciation of RMB is beneficial to the development of export-oriented enterprises in China, to export-oriented enterprises, to international arbitrage intervention, to the pressure of excessive currency, to financial stability, but not to banks.

When the RMB exchange rate breaks 7, it refers to the amount converted from US$ 65,438+0 in 7 yuan. When the exchange rate breaks 7, it means that more RMB needs to be exchanged for 1 USD, which means RMB depreciation. If the RMB exchange rate does not break 7, the RMB will appreciate, and both appreciation and depreciation have certain advantages and disadvantages. Details are as follows:

Breaking 7 means RMB depreciation, and the benefits are as follows:

1. If export is promoted after devaluation, the export profit will increase, because the foreign currency exchanged will appreciate, that is, more foreign currency can be exchanged;

2. Reduce the cost of foreign tourists coming to China and stimulate tourism;

3. Increase employment, stimulate consumption and stimulate domestic demand;

4. After the import is reduced, the domestic competition will be small, which is conducive to increasing employment opportunities.

Breaking 7 means RMB depreciation, and the disadvantages brought by depreciation are as follows:

1, currency depreciation will lead to price increase and even inflation;

2. It will lead to capital outflow;

3. It will lead to an increase in the cost of studying abroad or traveling;

4. It will directly lead to the increase in the price of imported materials and increase the cost;

5. In the early stage of depreciation, the property market and stock market may rise, but in the later stage, the assets of the property market and stock market may be shattered;

6. Continued establishment will lead to pessimistic expectations of international funds, and may sell China's stocks and assets, which is not conducive to the internationalization of RMB.

The RMB exchange rate breaking 7 means that the RMB converted from 1 USD breaks through 7 yuan, which is a devaluation for the RMB and will bring the following benefits:

1. The impact of RMB depreciation on export enterprises and overseas direct investment will eventually be reflected in employment, because China's export products are mostly labor-intensive products, and RMB depreciation will increase exports, thus alleviating the employment pressure of ordinary people to some extent.

2. RMB depreciation can reduce the cost of foreign tourists in China and promote the development of tourism.

3. Increase employment, stimulate consumption and stimulate domestic demand.

4. RMB depreciation is beneficial to the development of export trade, that is, RMB depreciation means that RMB is worthless, other currencies appreciate, and the price of products denominated in RMB drops, which is beneficial to export trade, such as textiles, clothing, toys and household appliances.

5. If export is promoted after devaluation, the export profit will increase, because the foreign currency exchanged will appreciate, that is, more foreign currency can be exchanged.

Of course, RMB depreciation also has some disadvantages:

1. RMB depreciation means that the RMB in hand is worthless. If people go abroad to study or travel, they will spend more money than before, and indirectly make the price of foreign goods rise, and people will spend more money to buy foreign goods.

2. In the case of people's devaluation, import-oriented industries will increase their import costs and indirectly reduce corporate profits, such as some transportation, steel and paper industries.

3. The depreciation of RMB leads to the outflow of investment funds from the domestic market to foreign markets, which reduces the trading volume of market funds and stock markets. At the same time, domestic investors will be bearish on the market, trading will be inactive, and stocks will generally fall.

4. RMB depreciation will lead to general price increase and inflation.

5. Continued depreciation will lead to pessimistic expectations of international funds, which may lead to the selling of domestic stocks and assets, which is not conducive to the internationalization of RMB.

When the exchange rate of RMB breaks 7, ordinary people can choose to increase investment in order to resist the losses caused by RMB depreciation, for example, to buy wealth management products such as funds, stocks and bank deposits.

The depreciation of RMB is bad for the stock market, which will lead to the decline of the stock market, that is, the depreciation of RMB will lead to the worthless RMB. In order to pursue higher returns, international capital will flow out of China market, which will reduce market capital and stock market turnover. At the same time, when the RMB depreciates, the state will adopt a certain tightening monetary policy or tightening fiscal policy, which will reduce the liquidity of the stock market. With the outflow of liquidity, the stock market will fall.

The depreciation of RMB is bad for the stock market as a whole, but not for all stocks, but for the following stocks:

1, export foreign trade-related stocks

The depreciation of RMB means that RMB is worthless, other currencies appreciate, and the price of products denominated in RMB drops, which is conducive to exporting foreign trade industries, such as textiles and clothing, toys and household appliances.

2. Stocks with higher foreign debts.

In the case of RMB depreciation, some foreign debts calculated in local currency will rise, which is unfavorable to debtors. Therefore, in the case of devaluation, it is bad for industries with high foreign debt, such as aviation.

3. Chemical Industry Unit

The depreciation of RMB will enhance the competitiveness of chemical exports and lead to the rise of stocks in this industry.

4. Port-related stocks

After the export is favorable, it will often lead to the favorable port, and may even stimulate the demand for raw materials and drive the bulk cargo transportation market.

5. Automobile-related stocks

The depreciation of RMB will reduce the price attractiveness of imported cars, or inhibit the further expansion of imported car sales, which is conducive to the development of local cars.