China Growth Stocks

[GorillaGorilla]

FT article Oct 29 Why the renminbi has to rise to address imbalances

- It's been pegged at 6.82 (whatever the offical line is)
- Dollar & Yan decline causing imbalances with rest of world

http://www.ft.com/cms/s/0/fd4b4852-c4db-11de-8d54-00144feab49a.html?nclick_check=1

My comments:

I cheked today and it's 6.82 exchange - and for the last few months.

Here's my favourite graph... hits 6.8 then no change...
http://finance.yahoo.com/q/bc?s=USDCNY=X&t=2y&l=on&z=m&q=l&c=

It does seem to be causing problems and it will be interesting to see what happens - It's a reasonable scenario to see the Yuan strengthen.

- In the past they kept buying dollars but given the likely continued dollar weakness is this sustainable? At the moment they are buying short term bonds and whinging... but as long as they keep buying it doesn't matter what they say.

rich