The offshore hedge fund's stop-loss order was triggered, and the RMB fell sharply by 500 points in the short term

Sina Financial News Barclays China interest rate, foreign exchange strategist Zhang Meng told reporters: "The initial trigger for the depreciation of the yuan should be the strong trend of the US dollar against all currencies overnight. In addition, there is also some impact on the central parity of the renminbi, and the market is readjusting its expectations, as the central bank could have kept the central parity at around 7.099 (as it has been for some time), but the mid-parity on March 22 was 7.1004, and then the onshore exchange rate fell below 7.2, triggering the stop loss of some hedge funds, which may be related to options. A number of foreign exchange traders told reporters that the stop loss of some overseas hedge funds was triggered, resulting in a short-term weakening of the RMB against the US dollar, but the overall market is not panicking, and the recent depreciation of the yen is actually greater.