In early this year, the People's Bank of China ambushed the short sellers in yuan offshore market in Hong Kong, as a result of which the short sellers suffered huge loss. ANBOUND's chief researcher, Chen Gong has spent years in strategic research and he is of the view that the short sellers did not leave merely because of the measures taken by the Chinese government. The short sellers misjudged the United States, the world economy as well as the finance. The short sellers underestimated the recovery of the U.S. economy and the issue of negative interest rate. Therefore, in analyzing the RMB exchange rate, one should take into consideration both the situation abroad and at home, although there is more room for RMB appreciation when the economic situation abroad takes a worse turn, we are under considerable pressure at the same time.