RMB fall fails to impact stock market

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors, according to the Financial Times. The Shanghai Composite has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi devaluation caused an already falling market to drop further. That episode seems to be a distant memory for investors, who say the central bank is getting better at communicating policy moves. Now the renminbi’s reference rate is determined by the previous day’s currency market movements. The positive half-year for the stock market is mainly fuelled by a lack of alternative investment options as domestic real estate has cooled, according to Chen Xingdong, chief China economist at BNP Paribas in Beijing.