Investment abroad, export of capital will be the key to yuan outflows

On Aug 5, Chinese currency renminbi (RMB) breached the 7-yuan-per-1 dollar mark in both onshore and offshore forex markets for the first time since the 2015 exchange rate reform.

What exactly does this indicate?

As early as the beginning of this year, at the CEIBS Financial Management Salon, I made it clear that like in the stock market, where volatility is the norm, the RMB volatility is the norm in the foreign exchange market. "There is no need to panic over the RMB breaching the 7-yuan-per-dollar threshold," I said at the event.