RMB has been sharply depreciated against the U.S Dollar since 2014. The criterion to judge the trend of RMB exchange rate is whether it will appreciate or depreciate if RMB can be freely converted? ANBOUND research team believes that RMB is most likely to depreciate in the short run due to China's economic slowdown. The downward pressure on China’s economy will not reduce in the short run meanwhile the sluggish growth in the manufacturing sector on top of the formation of real estate bubble will intensify the structure problem of China’s economy. Generally, the market interest towards RMB assets will highly decrease. Thus, the market shouldn't be too optimistic about the future trend of RMB exchange rate.