How will renminbi movements affect other Asian currencies?

We believe the move of US dollar/Chinese renminbi above seven during early August is symbolic, and the country has explained it is in response to the US-imposed tariffs on Chinese goods.

Unleashing this dollar/RMB 'seven' anchor level could have implications for other Asian currencies, which are likely to weaken in tandem with the RMB, and we could see more volatility in these markets.  However, in financial markets the impact on Chinese equities is likely to be greater than for Asian dollar-denominated credit, because the latter's returns are primarily driven by the dollar and by dollar rates.  There may be some concern that for Chinese investment grade companies who fund themselves in dollars, a weaker RMB could impact their debt servicing capabilities. However, ...