Five consecutive increases! The RMB continues to appreciate. The benefiting stocks are announced. Low valuation + low growth rate, only 30!

Multiple companies respond to the impact of the renminbi’s appreciation on their businesses.

After the Spring Festival, the exchange rate of the renminbi against the US dollar has continued to appreciate.

On February 26, the offshore renminbi against the US dollar briefly fell below the 6.83 mark, reaching 6.8267, hitting a nearly three-year low since March 23, 2023.

Since February 20, the renminbi has appreciated for five consecutive days, with the offshore renminbi against the US dollar rising over 600 basis points, nearly 1%. Since 2026, the offshore renminbi has appreciated nearly 1,400 basis points, a 2% increase.

Underlying Reasons

Regarding the reasons for the accelerated appreciation of the renminbi, Wang Qing, Chief Macro Analyst at Dongfang Jincheng, stated that the renminbi’s rapid appreciation against the dollar after the Spring Festival continues the relatively strong trend since December 2025. The possible reasons include: first, since November 2025, China-US trade relations have stabilized, and the overall external environment has improved, which is an important background for the renminbi’s strength; second, recently, the US Department of Justice launched a criminal investigation into Federal Reserve Chair Jerome Powell, impacting the Fed’s independence and putting pressure on the dollar; third, after the recent continuous appreciation of the renminbi against the dollar, the previously accumulated foreign exchange settlement demand from high exports is being rapidly released.

Guotai Junan Securities stated that at the beginning of 2026, multiple resonance conditions have emerged, which can be summarized into three near-term realities: first, the de-dollarization narrative has re-emerged, with non-US currencies rising collectively; second, the previous high surplus and high accumulation have resonated, with the ratio of surplus turning into actual foreign exchange receipts reaching nearly the highest in ten years at around 77.6%; third, domestic PPI has rebounded, and the stock market has had a strong start.

CITIC Securities noted that this round of renminbi appreciation is different from any previous instances. The underlying logic includes the increasing ability of Chinese companies to earn foreign currency abroad, the global distrust of the US dollar, the demand for currencies backed by physical assets, and China’s top-level policy design of “taxing” exports to subsidize domestic demand. These factors will not be reversed by changes in the Federal Reserve Chair or renewed expectations of a strong dollar.

Beneficiary Sectors

What investment opportunities are there with the renminbi’s appreciation?

Caitong Securities identified investment opportunities based on costs, assets, and liabilities: first, resource commodities dependent on imports (petrochemicals, industrial metals, steel, etc.), downstream consumption (papermaking, aviation, gas, etc.); second, dollar-denominated liabilities (aviation, real estate, REITs); third, core renminbi assets (banks, insurance, Hong Kong stocks).

On investor interaction platforms, multiple companies responded to the impact of the renminbi’s appreciation on their business operations.

Weixing Chemical stated that some raw materials need to be imported, and the appreciation of the renminbi is expected to reduce procurement costs.

Sun Paper said that the appreciation of the renminbi is beneficial for reducing costs of importing raw materials and production equipment.

Zhongshun Jierou indicated that the company’s pulp procurement is mainly settled in foreign currency, and the appreciation of the renminbi will to some extent lower procurement costs.

Shanghai Roche Pharmaceuticals stated that the company mainly imports human serum albumin products settled in US dollars. Assuming other variables remain unchanged, the appreciation of the renminbi could increase the company’s net profit.

Minfeng Special Paper said that, under the same conditions, the appreciation of the renminbi is favorable for reducing costs.

Weiyuan Co., Ltd. indicated that the appreciation of the renminbi will have a positive impact on operations and help reduce costs.

Hualing Steel stated that the appreciation of the renminbi is beneficial for lowering the cost of imported iron ore priced in US dollars.

Yueyang Forest & Paper said that the company has import-export business and foreign exchange loans, and the appreciation of the renminbi will benefit import operations.

Pinwo Food stated that its main products are imported from abroad, and the appreciation of the renminbi will reduce procurement prices, which is positive for the company.

Data from Securities Times and Data Treasure show that among traditional sectors benefiting from the renminbi’s appreciation—such as paper, steel, aviation, and gas—there are 30 stocks with a P/E ratio below 30 and an increase of less than 15% this year.

Among them, Shaanxi Natural Gas, Nanjing Steel, New Steel, New O, Shenzhen Gas, and Anhui Natural Gas are valued below 15 times; Haoyue Healthcare, Baichuan Energy, New O, Baosteel, and Spring Airlines are still declining this year.

Of these 30 stocks, seven have released 2025 performance forecasts or reports. Except for Shenzhen Gas, which showed a decline, the other six have improved performance or are expected to increase profits. Guangda Special Materials and Huaxia Airlines have forecasted over 80% growth; Hengfeng Paper and Yinlong Co. are expected to grow over 40%; Liugang Co. forecasted a turnaround.