If it is such a long-term restriction, it will certainly be very worrying, but what about our investment strategy under the appreciation and depreciation of the RMB?

1) brings adverse effects to the three types of industries.

A, representing the industry of local currency assets (real estate, finance, mining);

B. Industries with high foreign currency liabilities (aviation and trade);

C. Industries with large import volume (papermaking, petrochemical, steel). Finance (23%), real estate (4%), nonferrous metals (4.7%) and mining (14.7%) account for nearly 50% of the market value of A shares. If these industries continue to decline, A shares will face greater pressure.

2) In the case of RMB depreciation, some industries either benefit from sales growth or exchange gains settled in US dollars, such as textile and clothing, steel industry, shipping industry, chemical industry, household appliances industry and automobile industry.

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