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Plans for Chinese currency flexibility relax concerns about the sustainability of Chinese growth...

Plans for Chinese currency flexibility relax concerns about the sustainability of Chinese growth and could strengthen commodities markets sensitive to changes in the outlook for China’s economy. But some say the market's ebullient reaction today is premature - it's only an announcement which may or may not be followed through.
Comments (2)
  • bob adamson
    , contributor
    Comments (4558) | Send Message
     
    The Yuan has technically ceased to be pegged for some years but its float is tightly controlled. The announcement in advance of the G20 meeting is in reality that this float will be somewhat looser. The following articles give Canadian, UK and Chinese perspectives.

     

    www.financialpost.com/...

     

    business.financialpost.../

     

    www.theglobeandmail.co.../

     

    www.theglobeandmail.co.../

     

    www.economist.com/blog...

     

    english.people.com.cn/...

     

    english.people.com.cn/...

     

    www.chinadaily.com.cn/...
    21 Jun 2010, 09:44 AM Reply Like
  • Duude
    , contributor
    Comments (3382) | Send Message
     
    I agree the reaction is much about nothing. The Chinese have allowed a very small adjustment ahead of the G-20 just to give them a little ground to complain about government debt in the Western world. After the G-20 they may make one more small move just to hang onto some minor credibility with other nations, but that will be all. American companies won't see any surge of exports to China, but may hang a while longer onto their own share of the American marketplace if Chinese companies have to raise prices.
    21 Jun 2010, 10:05 AM Reply Like
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