The central parity rate of the Renminbi (RMB) yestoday broke 7.9 mark against US dollar, closing at 7.8998 yuan, more and more approaching the level of 7.8 - HK dollar against US dollar.
The yuan's value increasing bring the currency's total appreciation to more than 2.66 percent since reform of the RMB exchange rate system began in July last year.
Local economist said the expectation of RMB appreciation will continue to promote the stock and housing markets of Hong Kong, and to stimulate the mainland visitors consuming in HK.
JP Morgan director and general manager Gong Fangxiong believed RMB must hit 7.8 against before the end of this year; while HK dollar aslo will be in the face of the pressure of appreciation, but it can't change under the link exchange system, instead of the growth of assets's prices. He also predicted HK dollar can't break the lies with US dollar in 2-3 years, but after 3-5 years, it may links with RMB.
HKMA CEO Josoph Yam once said in his comlumn Views the link-exchange system need not to change as RMB can't exchange freely and isn't reserving currency; seeing from the technology, it can't be as HK dollar's linking currency.
Bank of Communications Fianancial Market analyst Luo Jiazong said once the technology sovled, HK dollar might tie with RMB partily.