Former Morgan Stanley foreign exchange strategist said that the 20th National Congress

After the new leadership of the Communist Party of China was released last weekend, it once led to a number of land -funded stocks such as investors panicked, but former Morgan Stanley foreign exchange strategist Stephen Jen believescorrect.

Bloomberg quoted Ren Yongli that the market will have a "ugly" scene in the next few years, but he believes that other better scenes may appear in the future.Ren Yongli runs a hedge fund and consulting company EURIZON SLJ Capital in London.

Ren Yongli said that the impact of the changes in the 20 major personnel of the Communist Party of China has covered the CCP's leader Xi Jinping that economic development will still be the priority of the primary policy goal.He also said that in the next 5 to 10 months, he still believes that the Chinese government will provide policy support for the real estate industry, and the dynamic clearance policy may also be modified.

It is reported that after the closing of the 20th National Congress of the Communist Party of China, as investors evaluate whether they can invest in China's financial markets, the Hong Kong stock market has shown the worst day since the 2008 global financial crisis.The lowest point in nearly 15 years this week.Analysts believe that the renminbi will fall further, and Bank of America expects that the RMB will be degraded to $ 7.6 by the end of the year.

Ren Yongli believes that the renminbi is in a favorable position against the US dollar.He said that international revenue and expenditure data show that once the US dollar depreciates, a large number of excess US dollars are ready to sell in China's banking system.The strengthening of RMB may in turn enhance the attractiveness of Chinese bonds to foreign investors, and its volatility is low and diversified.

Ren Yongli also said that the Chinese stock market has a risk premium because it is expected that the Chinese government may support the public sector at the cost of sacrificing the private sector.But he expects that the popular industries will have a significant performance.