CITIC Securities: Factors driving the appreciation of the Renminbi are gradually increasing, three clues to pay attention to.

According to the research report of CITIC Securities, the factors driving the appreciation of the renminbi are gradually increasing, and market attention is also starting to heat up. Investors should gradually adapt to making asset allocations in an environment where the renminbi continues to appreciate. Looking at the seven rounds of renminbi appreciation cycles in the past 20 years, exchange rates are not the decisive factor in industry allocation. However, some industries will indeed perform better in the initial stages of continuous appreciation expectations, and the market may replicate this muscle memory. From the analysis of cost and income, about 19% of industries will see profit margin improvement due to appreciation, and these industries will gradually be more valuable to investors. In addition, policy responses to curb rapid one-way appreciation trends are actually more important factors affecting industry allocation. In terms of industry allocation, in the context of continuous renminbi appreciation, one can focus on three clues: short-term muscle memory drive, profit margin change drive, and policy change drive.