Sunday, 1 October 2017

Sharp Appreciation of RMB in a Single Day, the Paper Industry may Benefit

Toilet paper, tissue paper, pumping paper, handkerchief paper, napkins, towels, and other series of tissue in different grades are all available. If you have any interests, please do not hesitate to contact us. 

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Tips: On May 31, the offshore RMB mark against the dollar rose above the 6.76, up more than 600 points on the day. In the short term, the RMB against the dollar is still expected to continue strongly. The Central Bank of China announced on Friday, the RMB against the dollar parity of countercyclical regulatory factor also is considered by the market for the RMB. Cicc Research thinks, the adjustment to reduce the middle price formation in the formula "Pro-cyclical" and with reference to the previous day's closing price of "inertia", moreover the economic fundamentals to the RMB exchange rate has a strong support for this year. Appreciation of RMB would give airlines a currency benefit and would reduce the cost of pulp and waste paper imports.

On May 31, the offshore RMB mark against the dollar rose above the 6.76, up more than 600 points on the day. On the news, there have been media reports that the central bank will increase the "countercyclical adjustment factor" in the middle price mechanism. Cicc Research thinks, the adjustment to reduce the middle price formation in the formula "Pro-cyclical" and with reference to the previous day's closing price of "inertia", moreover the economic fundamentals to the RMB exchange rate has a strong support for this year.


In the short term, the RMB against the dollar is still expected to continue strongly. The Central Bank of China announced on Friday, the RMB against the dollar parity of countercyclical regulatory factor also is considered by the market for the RMB.

An appreciation of the RMB would give airlines a currency gain, while on 31th the Brent crude fell nearly 3 percent on the day, helping airlines cut costs. Positive Citic Securities pointed out that since this year the domestic supply and demand should be from promoting price picking up to the international decline narrowed. Looking at booking data in June peak season revenue trend is expected to continue.

Cicc Research thinks, the adjustment to reduce the middle price formation in the formula "Pro-cyclical" and with reference to the previous day's closing price of "inertia", moreover the economic fundamentals to the RMB exchange rate has a strong support for this year. Appreciation of RMB would give airlines a currency benefit and would reduce the cost of pulp paper product imports.

Benefit shares in

Southern Airlines (600029) continued to improve in April;

China Eastern Airlines (600115) has long benefited from the rapid growth of the market in the Yangtze River Delta and the improvement of the source structure. Moreover, appreciation of RMB would reduce the cost of pulp and waste paper imports.

The Solar Paper Industry (002078) is expected to increase 1.2 times to 1.5 times in the first half of the year.

The Mountain Eagle Paper Industry (600567) reported a big increase in the first half of the year.

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