Goldman Sachs(US:GS) Sou Hu Cai Jing·2025-05-27 08:27Group 1 - The offshore RMB has recently appreciated against the USD, breaking the 7.17 mark, with a low of 7.16, and closing at 7.1782 on May 26 [1] - Goldman Sachs has adjusted its 12-month USD/RMB target to 7.0, indicating a potential 3% foreign exchange gain for the RMB in the next year [1][4] - Historically, when the RMB appreciates, the Chinese stock market tends to perform well, particularly in sectors like consumer discretionary, real estate, and diversified financials [1][4][5] Group 2 - The recent appreciation of the RMB is attributed to the easing of trade tensions, with the RMB center rate falling below 7.2 for the first time since April [1][8] - Despite the recent gains, there are concerns about the sustainability of the RMB's appreciation due to ongoing uncertainties in trade negotiations and macroeconomic conditions [8][9] - Companies that may benefit from RMB appreciation include those with a market capitalization over $2 billion and significant exposure to USD costs, such as airlines and food sectors [6] Group 3 - Conversely, companies that may be adversely affected by RMB appreciation are those with over 30% of their revenue from overseas and low USD debt exposure [7] - The future trajectory of the RMB will largely depend on export conditions and the behavior of exporters regarding currency conversion [9][10] - The potential for further RMB appreciation is limited, as the central bank has not shown intentions to significantly push for a stronger RMB [9][10]