It is obviously clear that the exchange rate of RMB against the US Dollar is at 6.2, near the record high, but Anbound's Chief Researcher, Chan Kung, pointed out that China's current economic outlook is uncertain. The PMI index hovered around 50, both the import and export slipped apparently, the high costs forced more foreign capital to escape from China, and the domestic security market is in its long-term sluggish stage. Under these situations, it is unusual that large amount of foreign capital are flowing into China in the bid for RMB appreciation. The reason might be China's higher interest rate that encouraged hot money to flood into China. Chan Kung suggested that Chinese central bank should consider cutting the interest rate.