China Growth Stocks

[ratobranco]

Possibility of Yuan Depreciation?

Have people thought about this? Maybe the Chinese are letting the currency float freely because they believe the yuan is overvalued at 6.85, and that they can avoid further appreciation and damage to their european export markets by letting the currency float more freely?

I don't necessarily think that's the case, but it's hard to understand why China would be intentionally letting the currency appreciate right now. Europe, China's number one export market, is a mess, and the yuan has already gained substantially with respect to the euro.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=ai9OgOqgZqng&pos=2