Anbound's chief researcher, Chen Gong is of the view that the recent adjustments to the exchange rate formation mechanism will give rise to the following impacts: - (i)RMB might not be stabilized at all; (ii)The possibly limited impact on China’s manufacturing sector; (iii)It is highly possible that there might be tax rise after the devaluation of RMB ; (iv)The internationalization of RMB could be affected greatly; (v)Overseas investment and tourism will be affected; (vi)The implementation of the Belt and Road initiative will be affected; and (vii)The USD-denominated debt for Chinese enterprises will increase. It is highly likely that the central bank has under-estimated the impacts brought by RMB devaluation.