In Hong Kong, the world's financial center, there has been a strange divergence in the renminbi exchange rate. The central parity of the US dollar against the yuan has hit a new high in nearly five months. It reached 1 US dollar to 7.2437 yuan. The US dollar has shown a downward trend against the offshore yuan, which is still some distance from the highest exchange rate of 7.2831 US dollars, and even accelerated its decline.
Look at it for now. The renminbi's 7-day interbank rate in Hong Kong has been hovering around 6% for several days. Hong Kong's stock market rose sharply for the first time in six days of decline, and despite a 1.77% gain, it was already the best performer among Asian stocks.
Last week, the international security situation changed dramatically. Global stock markets are in the midst of intense volatility, especially in the Asia-Pacific region. Even the stock markets in Shanghai and Shenzhen, China, have seen significant volatility. The Hang Seng Index took the lead in rising this time, which shows us the desire of foreign investors to buy Chinese assets desperately. This is illustrated by the growth of the renminbi's share of payments in overseas markets.