What’s Really Driving China’s Currency Stability (KraneShares)

China’s currency the renminbi (RMB) has surprised many market participants with its year-to-date strength, which is being explained away by a surprisingly weak dollar. We believe that the fundamentals are part of the story, and that interest rates, economic growth and capital flows have all supported RMB strength this year. However, there has also been a steady policy transformation taking place over the last two years, that we believe will drive the relationship between the RMB and the USD going forward and change the way people view China’s currency and fixed income markets as part of a well-designed portfolio. READ MORE

Similar Posts:

• Don’t Believe All the Doom and Gloom Scenarios for China? (FT)
• Some Key Points: The Renminbi & China Commercial Paper Market (KraneShares)
• China Will Do What’s Best for China: Not Shooting Markets (Bloomberg)
• Moody’s Downgrades China’s But Changes Outlook to Stable From Negative (Moody’s)
• Newton’s Pidcock: Asian Recovery Just Getting Started (FE Trustnet)
• Uncommon Yields: How China is a Rare Bright Spot in a World Deprived of Yield (KraneShares)
• Why Two Fund Managers Still Believe in Macau Casino Stocks (FE Trustnet)
• Moody’s Changes Macau’s Outlook to Stable From Negative (Moody’s)
• Nikko AM’s Sartori: Best Buying Opportunities in Asia in My Career (AFR)
• China: Navigating the Regulatory Landscape (UBS AM)
• Understanding China’s Onshore Equity Market Rally (KraneShares)
• China Has $67 Trillion in Potential Consumer Spending Over the Next 10 Years (Nielsen)
• China’s Renminbi is Rapidly Displacing the US Dollar as a Trading Currency (FT)
• Talking Markets Podcast: Asia – Macro and Markets in 2021 (Pinebridge Investments)
• The Future of Yuan (Express Tribune)