UBS: Renminbi's rise weighs on overseas business, A-share earnings may fall

UBS Securities China equity strategy analyst Meng Lei said that as the renminbi continues to strengthen, foreign exchange losses in the A-share non-financial sector widened significantly in the first half of this year, and exchange rate changes are imposing a considerable cost on Chinese companies expanding into overseas markets. Over the same period, China's exports maintained relatively strong growth momentum, while the trade surplus in dollar terms fluctuated upwards.