Nowadays, there has been a saying in the market going as “RMB will appreciate in 2004”; how would this influence the companys operating results?
The company reckons that the exchange rate of Renminbi is to remain stable in the near future, furthers still. The Chinese government has declared itself for many times with regard to the concern about revaluation of RMB, and Renminbi appreciation is not likely to happen in the near future. It is estimated that the State will further explore and consummate the “RMB Exchange Rate Formation Mechanism” in its drive for carrying forward the reform into its financial system. If RMB appreciate slightly, it will have a negative, but not so big, influence on Sinopec on the whole. As to international investors, revaluation of Renminbi can bring them more dividends.
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