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WisdomTree Chinese Yuan ETF (CYB)

  • Aug. 30, 2011, 7:52 AM
    Traders say the PBOC looks to be allowing another leg of yuan appreciation, as the currency rises to an all-time high of 6.3795 to the dollar. The PBOC has been following a "2 steps up, 1 step down" pattern to try and avoid speculation on one-way moves. The yuan +3.27% vs. the greenback YTD.
    | Aug. 30, 2011, 7:52 AM | Comment!
  • Aug. 16, 2011, 7:58 AM
    An above-the-fold editorial in state-owned China Securities Journal calls for widening the yuan/dollar trading band - bureaucrat-speak for allowing a slightly faster appreciation. Currently at 0.5%/day, the band is rarely threatened, but the PBOC has allowed a fix near the high end for 5 straight days.
    | Aug. 16, 2011, 7:58 AM | Comment!
  • Aug. 15, 2011, 7:19 AM
    The dollar's recent slide against the yuan - falling 0.8% last week, the biggest move in more than a year - may have been the result of coordinated central bank action to calm financial markets in addition to the chance China is now allowing a faster appreciation of its currency, say analysts at DBC.
    | Aug. 15, 2011, 7:19 AM | 1 Comment
  • Aug. 12, 2011, 3:24 PM
    "The equivalent of a subsidy of 20% on all China's exports and an additional tariff of 20% on all China's imports," says Fred Bergsten of intervention which keeps the yuan undervalued. (It's) "the largest protectionist measure ... probably in all of history," he adds. He suggests the U.S. file a case with the WTO.
    | Aug. 12, 2011, 3:24 PM | 1 Comment
  • Aug. 10, 2011, 7:58 AM
    The recent market turbulence looks to have taken continued Chinese rate hikes off the table for now. "Usually, the Chinese government stops doing anything when there's chaos around, that's the instinct," says Andy Xie. A note last night from China's State Council dropped fighting inflation as the nation's top priority.
    | Aug. 10, 2011, 7:58 AM | Comment!
  • Aug. 3, 2011, 10:32 AM
    A prominent Chinese academic calls for the U.S. to "provide provisions for foreign-exchange loss in our investments in (Treasuries)." China may be realizing its helplessness, given much of its wealth is tied up in an asset it has no control over. One item it does control: The yuan, whose peg assures a continued accumulation of greenbacks.
    | Aug. 3, 2011, 10:32 AM | 3 Comments
  • Jul. 27, 2011, 8:35 AM
    "Speculators have been burnt many times before," says a bank currency trader, warning the dollar's daily record lows vs. the yuan could soon provoke a response from the PBOC (not to mention the BOJ, SNB RBA, ECB, BOC, and Brazil).
    | Jul. 27, 2011, 8:35 AM | Comment!
  • Jul. 20, 2011, 12:10 PM
    The U.S. will almost assuredly not miss any coupon payments on its debt, but that doesn't mean it won't default, writes Jeff Rubin. Japanese insurers suffered huge losses in the 70s, as the dollar fell 40% vs. the yen. They'd have been better off in lower-yielding JGBs. China might expect the same.
    | Jul. 20, 2011, 12:10 PM | 2 Comments
  • Jul. 12, 2011, 5:04 PM
    Australian miner Fortescue Metals (FSUMY.PK) has begun settling transactions with China in yuan, expecting to expand the practice quickly. "We are now exploring the possibilities of being paid in renminbi, purchasing equipment in renminbi from our renminbi bank accounts," says incoming CEO Andrew Forrest.
    | Jul. 12, 2011, 5:04 PM | 3 Comments
  • Jul. 5, 2011, 8:27 AM
    The modest rise in the yuan combined with booming labor costs are forcing U.S. firms with Chinese operations to cope by either jacking prices and/or moving production to other Asian nations or cheaper parts of China. Expectations China would consider a major revaluation of its currency don't consider how thin a margin China, Inc. is operating under.
    | Jul. 5, 2011, 8:27 AM | 4 Comments
  • Jul. 4, 2011, 10:33 PM
    Moody's warns it may go negative on the outlook for China's banking system, saying it has identified an additional $540B of loan exposure to local governments beyond the $1.6T discovered by a national audit. As these loans were not covered by the audit, it is likely they are especially dodgy and "pose the greatest risk of delinquency."
    | Jul. 4, 2011, 10:33 PM | 7 Comments
  • Jun. 30, 2011, 8:59 AM
    Believing flaws with current yuan policy are becoming more obvious, Bank of China says it's "very likely" Beijing will widen the trading band of the currency vs. the dollar.
    | Jun. 30, 2011, 8:59 AM | 1 Comment
  • Jun. 29, 2011, 10:31 AM
    The IMF warns against the conventional wisdom on yuan revaluation, saying job losses would be more severe and not limited to just the low-margin manufacturing industries. Everything is linked together, and it would be a mistake to believe services would not be affected by a slowdown elsewhere. Full report (pdf).
    | Jun. 29, 2011, 10:31 AM | 1 Comment
  • Jun. 28, 2011, 11:49 AM
    HSBC (HBC) chief Stuart Gulliver says to expect the yuan as one of the three main reserve currencies in 15-20 years, along with the dollar and euro. China's former central bank chief Dai Xianglong agrees with that timetable: massive yuan trade settlements, then free convertibility, then reserve currency.
    | Jun. 28, 2011, 11:49 AM | Comment!
  • Jun. 23, 2011, 7:56 AM
    PBOC adviser Xia Bin adds his name to the list urging China to diversify its fx holdings. After putting aside a sufficient amount to stabilize the exchange rate, China should invest in areas of strategic importance - high tech, green technologies, gold - and higher yield.
    | Jun. 23, 2011, 7:56 AM | Comment!
  • Jun. 20, 2011, 12:07 PM
    One year since China ended the yuan's peg to the dollar and the currency has risen 5.5%. This hasn't dented the China's trade surplus with the U.S., which is larger so far in 2011 than it was in 2010. Throw in the dollar's fall against the euro and things are even tougher for the manufacturing sectors of the EU periphery.
    | Jun. 20, 2011, 12:07 PM | 1 Comment
CYB vs. ETF Alternatives
CYB Description
WisdomTree Chinese Yuan Fund seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar.
See more details on sponsor's website
Country: China
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