00HSI

<p>The positive correlation between the Renminbi and Hong Kong stocks has been significant since 2016, but recently, when the Renminbi appreciated rapidly, Hong Kong stocks failed to rise, showing a divergence. Historical data shows that the appreciation of the Renminbi usually drives Hong Kong stocks up, but in the recent appreciation, Hong Kong stocks actually fell. Analysts believe that weak performance and profit-taking trades in the market have limited the response of Hong Kong stocks to the appreciation of the Renminbi</p>

- Since 2016, the Hong Kong stock market has shown a significant positive correlation with the renminbi, but recent rapid appreciation of the renminbi hasn't led to corresponding gains in Hong Kong stocks.  
- This divergence is attributed to poor earnings performances in key sectors and a lack of foreign investment influx that typically benefits from currency appreciation.  
- Looking ahead, if corporate earnings improve and foreign investment returns, the correlation between the renminbi and Hong Kong stocks may re-establish, potentially allowing for currency appreciation to drive stock market gains once more.

Renminbi and Hong Kong stocks, who is whose "shadow"?