Goldman Sachs(US:GS) Shen Zhen Shang Bao·2025-05-27 20:07Core Viewpoint - The recent appreciation of the Renminbi (RMB) against the US dollar has garnered market attention, with the onshore and offshore RMB breaking the 7.17 mark, reaching a new high since December 2024 [1][2]. Group 1: RMB Exchange Rate Trends - Since May, the RMB has shown a continuous upward trend, with both onshore and offshore rates increasing by over 1% [1][2]. - The RMB's strength is attributed to three main factors: easing concerns over US-China trade tensions, a weakening dollar, and a resilient domestic economic foundation [2][3]. - Goldman Sachs has adjusted its 12-month RMB/USD target to 7.0, indicating a projected 3% appreciation over the next year [2]. Group 2: Market Implications - The appreciation of the RMB is expected to benefit the Chinese stock market, with a potential 3% increase in stock prices for every 1% appreciation of the RMB against the dollar [4]. - Increased foreign investment in Chinese assets is noted, with a net increase of $10.9 billion in domestic bonds in April, indicating strong foreign interest [4]. - The RMB's strengthening is anticipated to enhance the earnings outlook for companies and attract more foreign capital into the Chinese stock market [4].