Will the exchange rate of RMB continue to appreciate? Xing Ziqiang: It is possible in the short term, but there is still uncertainty in the long term.

On January 10th, at the "2026 China Chief Economist Forum", Xing Ziqiang, the chief economist of Morgan Stanley China, stated that the recent appreciation of the renminbi is mainly driven by the depreciation of the US dollar and the seasonal factors of exports and consumption before the Spring Festival. The renminbi still has room for appreciation this year, with the short-term in the first and second quarters possibly around 6.8, but there is still uncertainty by the end of the year. He emphasized that China needs to address issues such as economic polarization, local government incentives, and the fiscal and taxation system, and cannot rely solely on the appreciation of the renminbi to achieve economic balance.