【西街观察】人民币升值，别期待“一口吃成胖子”

Group 1 - The offshore and onshore RMB against the USD have both reached 14-month highs, with offshore RMB appreciating by 4.4% and onshore RMB by 3.7% year-to-date, while volatility has dropped to a near ten-year low [1] - Over 30 A-share companies have engaged in foreign exchange hedging activities since December, demonstrating a rational response to currency fluctuations [3] - Regulatory authorities are encouraged to enhance expectation management and macro-prudential oversight, providing better support for companies to mitigate exchange rate risks [3] Group 2 - The appreciation of the RMB reflects the resilience of the domestic economy, but a gradual and stable approach is deemed more sustainable than rapid increases [3] - The dual forces of expanding trade surplus and insufficient domestic demand keep the RMB exchange rate in a dynamic equilibrium adjustment process [2] - Companies are advised to focus on core business development and use foreign exchange hedging tools to manage currency mismatch and exchange rate exposure risks [2]