Goldman Sachs predicts that for every 1% appreciation of the Renminbi against the US dollar, the Chinese stock market could rise by 3%.

Goldman Sachs strategists say that the Chinese stock market is expected to benefit from a further rise in the Renminbi; the Renminbi has shown resilience in the China-US trade dispute. Kinger Lau and other strategists wrote in a report on Monday that for every 1% increase in the Renminbi against the US dollar, it could push the Chinese stock market up by 3%, thanks to factors such as improved profit prospects for companies and increased inflow of foreign capital. Earlier this month, Goldman Sachs raised its 12-month forecast for the Renminbi against the US dollar from 7.35 to 7.