Guojin Securities: The dual nature of RMB assets' "hedging + appreciation" may attract more long-term allocation funds.

On February 27, Guojin Securities pointed out that in the future, it is necessary to focus on the management rhythm of Central BankLiquidity, changes in the behavior of foreign institutions and the direction of geopolitical adjustment, which may dominate the short-term Fluctuation and medium and long-term trend of the Panda Bond Intrerest Rate. From the perspective of the international situation, after Trump's return to the White House, the tariff policy has not been implemented as expected, the recently disclosed macro data is weak, the yield of medium and long-term US Treasury bonds has fallen, and the Fed's interest rate cut expectations have risen again. On the other hand, DeepSeek's technological breakthrough has promoted the revaluation of A-share technology stocks, and mainstream foreign institutions are bullish, and multiple factors have superimposed to promote this round of RMB appreciation. If the appreciation of the renminbi continues, the actual return on foreign holdings of panda bonds will increase due to the strengthening of the exchange rate, and the dual attributes of "hedging + appreciation" of renminbi assets may attract more long-term allocation funds.