Last November, China handed over power to the fifth generation of Chinese Communist-Party leaders. And the new State Council-in essence, China's government-will be announced in March at the 12th National People's Congress.
One of the big challenges for the new leadership will be transitioning from a mainly export-based economy to one driven by domestic consumption. For this to happen, Beijing needs to allow the Chinese currency, the yuan (or renminbi), to rise versus its major trading partners.
The best way to play this long-term trend is through the CurrencyShares Chinese Renminbi Trust (NYSEARCA:FXCH). This gives you access to the yuan through your regular broker. And it has the lowest fees (at just 0.40%) of three available yuan-focused ETFs.
If you are bullish on China's long-term growth prospects…or are concerned about the weakness of the U.S. dollar…FXCH makes sense.