As we know ,the RMB is stronger.
And it may appreciate ,at least, 9% this year.
What is the short term effects?
It depends mostly on what is happening with the USD right? What is the most the Yuan can appreciate against the USD in any given time frame? Is there an upper and lower limit? (i.e. a range it can travel within?)
You know they still have one fen notes?
can it get you anything? or is the paper more valuable?
At least no-one fakes one fen notes.
Since China is the most expected Emerging market.
The booming economic makes RMB getting stronger.
But do they have the sound sysytem?
And the accuracy and circulation of information is enough?
If it doesn’t do you think RMB’s appreciation can last a while(I mean a longer time)?
Well think about it. If it keeps appreciating against other currencies, it makes them less competitive as a manufacturing nation…and thats pretty much all the China is.
Margins tend to be razor thin in a pure manufacturing economy and any appreciation of the RMB against say Taiwan, will mean that some manufacturing may even start to move back the other way.
Appreciate against what? It’s more or less pegged to the US dollar and it hasn’t moved against Sterling for as long as I can remember. The bands it “trades” within at the moment are extremely narrow and are unlikely to be widened any time soon.
Thanks for the info, guys. I for one now appreciate the RMB.
finance.yahoo.com/currency/conve … amt=1&t=2y
The RMB is most certainly appreciating against the dollar. Hell, the RMB is even more valuable than the HK dollar (which is pegged to the US dollar.)
I’m sure the Chinese would have loved to have kept it at $1=8.28RMB forever, but there was too much political pressure from the US. How much further will they allow it to appreciate? Who the hell knows? That’s why currency speculation is a fool’s game. Certainly the fundamentals suggest that the RMB will continue to appreciate, but what assets are you going to put your RMB into? Would the risk-weighted return be greater than, say, the return from the stock market in the US? Do you have a way to move your currency back and forth?
The RMB continues to appreciate seems to be expected.
Since it is stronger,I dont know if it will continue to be pegged the USD.
For now,we still can’t exchange RMB in Taiwan.
I’d like to know if you all want to convert your Money to RMB?
and
finance.yahoo.com/currency/conve … amt=1&t=2y
The RMB is most certainly appreciating against the dollar. Hell, the RMB is even more valuable than the HK dollar (which is pegged to the US dollar.)
I’m sure the Chinese would have loved to have kept it at $1=8.28RMB forever, but there was too much political pressure from the US. How much further will they allow it to appreciate? Who the hell knows? That’s why currency speculation is a fool’s game. Certainly the fundamentals suggest that the RMB will continue to appreciate, but what assets are you going to put your RMB into? Would the risk-weighted return be greater than, say, the return from the stock market in the US? Do you have a way to move your currency back and forth?[/quote]
Well I own part of a flat in Shanghai so that is as good a bet on the RMB as any, but at the end of the day the RMB trades at whatever the Commies want it to trade at. But I suppose we are taking a bet that China is economically on the up and up and that to me seems fairly smart as long as the investment can be liquidated with a day’s notice (which obviously mine can’t). I would consider RMB investments high risk. I would much rather buy a house in the UK even at today’s prices that one in Shanghai, but property in Shanghai is cheap compared to London. Shanghai is a boom and bust kind of place, and the powers that be are trying to dismantle the Shanghai Clique and Shanghai’s general influence. I would prefer to buy property in Beijing that Shanghai. No-one actually WANTS to live in Shanghai - property is entirely a function of the economy. If you can get past the “Shanghai is the New Black” propaganda and lazy Western journalism about “The New Chinese Century (will that do?)” then it is obvious Shanghai is a city of gougers and cowboys that could disappear up its own arse with a bang tomorrow. Beijing, on the other hand, will always be there.
Problems with funds too is that what on earth are they invested in? Most “funds” here consist of a bunch of old commies who have ripped several million quid off the state and set up an “Investment Company” to launder the ill-gotten gains. Friends and reliable relatives are brought in to “manage” (i.e. “obfuscate”) what is going on and the company makes bugger all return but the principals stay out of jail. It invests in “funds” and “companies” run by other corrupt bureaucrats with names like “Zhejiang No.1 Toilet Seat Factory Investment Company Ltd”. Legit foreign firms, on the other hand, either can’t invest in anything terribly profitable, can’t invest enough, or are precluded from taking the risk analysis equivalent of arranging a Guy Fawkes party in a petrol station. That’s why their returns are so abysmal.
HSBC in Hong Kong and the Bank of China (and others I’m sure) do RMB denominated products.
However there are signs foreign securities houses are being allowed to do more business, which means their US/European fund clients will be able to expand their range of China funds, which in turn means a greater choice for the risk-hungry retail investor who wants a piss-poor return.
China declared they will impose the land value increment tax 30%-60% on real estate angent.Is it still worth investing in real estate ?
According to the TV news reported,the people in Shanghai are crazy for the stocks.Does the macro adjustment control really work?
China declared they will impose the land value increment tax 30%-60% on real estate angent.Is it still worth investing in real estate ?
According to the TV news reported,the people in Shanghai are crazy for the stocks.Does the macro adjustment control really work?[/quote]
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Only in the suburbs which will become desirable after they throw everyone out of the centre of Shanghai.
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Macro-controls don’t even work in the West.
I saw on tv that a lot of people go to HK and open accounts there, for one the RMB appreciate and you make money off CD or the intrests…how is this? I am thinking about opening an account in HK and just leave the money there. and I will go there like once a year.
There are many Taiwanese go to HK for sightseeing (not the main goal )and open their accounts there.
I want to,But I have no any idea of this.
It’s very much a case of make hay while the sun shines.
China declared they will impose the land value increment tax 30%-60% on real estate angent.Is it still worth investing in real estate ?
According to the TV news reported,the people in Shanghai are crazy for the stocks.Does the macro adjustment control really work?[/quote]
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Only in the suburbs which will become desirable after they throw everyone out of the centre of Shanghai.
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Macro-controls don’t even work in the West.[/quote]
The houses price of the center of SHanghai is way too high.
so people move to the suburbs is the trend.
But when the price is over-priced as the center then what will happen?
What I’m interested in seeing is what are people’s reactions when the market corrects. 
Do you think they will take it rationally?
Last time I had a customer complaint in China the Sales Rep. and the Surgeon were put in jail - for their own protection.