The RMB has continued to appreciate since the start of the year, and some companies plan to engage in hedging at the appropriate time to mitigate market risks.

Since the start of the year, the renminbi has remained below 7 against the U.S. dollar, with its appreciation trend continuing. Recently, a major home furnishing company announced plans to launch financial derivatives trading at an appropriate time to engage in hedging through financial swaps, options, and other instruments. On a monthly basis, the renminbi has generally fluctuated upward against the U.S. dollar since April 2025. Throughout 2025, the U.S. dollar depreciated by 4.24% against the onshore renminbi. Guan Tao, Global Chief Economist at BOC Securities, notes that in the short term, factors favorable to the renminbi are dominant. However, looking ahead, Guan Tao believes that uncertainties do exist. First, the US dollar may not depreciate as sharply in 2026 as many anticipate. Historical data shows that while the dollar fell in 2017, it rebounded in 2018 and did not experience continuous depreciation. Second, the stability of the external environment remains uncertain. Third, the resilience of economic growth in 2025 is largely attributable to robust external demand; if external demand faces disruptions in 2026, we will need to make even greater efforts. Therefore, we should remain cautious regarding the notion that a “new cycle has arrived.” (Everyday Economic News)