Seeking Alpha

WisdomTree Chinese Yuan ETF (CYB)

  • Apr. 20, 2011, 4:37 PM
    A series of comments in recent days is leading to speculation the Chinese will allow faster appreciation of the yuan or even a significant one time revaluation. However, even proponents of a stronger yuan aren't buying it. "The economics make sense, but politically it would be impossible to get agreement."
    | 1 Comment
  • Apr. 20, 2011, 11:38 AM
    A moment of pause for those clamoring to invest in China: a Bain study says a high percentage of rich Chinese are interested in moving themselves and their cash out of the country. The famous Chinese appetite for risk seems to have morphed into a desire to secure wealth.
    | Comment!
  • Apr. 19, 2011, 12:47 PM
    Stephen Gallo suggests comments from PBOC Gov. Zhou Xiaochuan that Chinese reserves have exceeded a "reasonable" level may be the most important event of the week. Just possibly, authorities are losing patience with efforts to reign in liquidity and are ready to allow the yuan to revalue.
    | Comment!
  • Apr. 19, 2011, 10:25 AM
    Continuing on a path towards use as an international currency, yuan-denominated transactions were used for about 7% of China's trade in 2011 Q1 vs. little more than zero one year ago.
    | Comment!
  • Apr. 19, 2011, 7:51 AM
    PBOC Deputy Gov. Hu Xiaolian says there is "considerable room" for further hikes in bank reserve ratios. Interestingly, she notes these increases do not affect bank operations, but are instead to soak up liquidity from foreign direct investment. FDI earlier.
    | Comment!
  • Apr. 19, 2011, 7:42 AM
    Offsetting attempts by authorities to cool credit growth, FDI into China surges 29% in Q1 from a year earlier, as investors rush to get a stake in the world's fastest growing economy. This is likely to necessitate further monetary tightening and more pressure to let the yuan rise.
    | Comment!
  • Apr. 18, 2011, 3:12 PM
    The IMF shoots back at emerging economies, warning of a hard landing if more is not done to slow capital inflows into their countries. No criticism is made of developed countries printing the currency which is finding its way into the emerging markets. (earlier)
  • Apr. 15, 2011, 5:46 PM
    With officials worried about inflation and credit growth spinning out of control, why have Beijing's actions been so tentative? No one is in charge, writes Bob Davis, explaining a web of often competing bureaucracies, each getting a say in any monetary policy move. "Who is China's Bernanke," asks a former PBOC advisor.
  • Apr. 15, 2011, 1:20 PM
    At the root of China's property bubble is the usual suspect: inflation. Negative real interest rates combined with a lack of investment choices have citizens turning to real estate as a hedge against soaring inflation, writes Loren Brandt. Current exchange rate policy ensures inflation-inducing liquidity will remain.
    | Comment!
  • Apr. 15, 2011, 9:33 AM
    Desperate for relief on inflation, China is resorting to stricter controls, the NDRC becoming a revolving door of companies brought in and ordered not to raise prices. Note to China from the U.S. circa the 70s: price controls may temporarily suppress prices, but do nothing to reduce inflation.
  • Apr. 15, 2011, 7:15 AM
    Chinese inflation comes in right on the whisper number, rising to a 5.4% Y/Y rate in March. While the majority of analysts expect just a bit more monetary tightening, Brown Brothers argues for more aggressive action, claiming the PBOC has fallen "behind the curve." China +0.3%.
    | Comment!
  • Apr. 14, 2011, 7:53 AM
    The Xinhua news agency reports Chinese Premier Wen vowing to "increase the flexibility" of the yuan to combat inflation. It's the first time a senior Chinese official has acknowledged using the currency as a tool against price rises. A Hong Kong source reports March inflation rising to the 5.3-5.4% range.
    | Comment!
  • Apr. 14, 2011, 7:26 AM
    The PBOC reports China's foreign currency reserves jumping $197B in the 1st quarter to more than $3T. The growth in reserves suggests, despite a 1st quarter trade deficit, China continues to print gobs of yuan to buy up greenbacks. The G-20 gathers tonight in D.C.
    | Comment!
  • Apr. 13, 2011, 9:19 AM
    Citing the "high likelihood of a significant deterioration" in bank asset quality within 3 years, Fitch lowers its outlook on China's credit to "negative." Fitch doesn't buy the banking system's reported NPL figure of 1.1%, arguing a truer number would eliminate the lenders' loss-cushioning capital.
  • Apr. 13, 2011, 7:44 AM
    Andy Xie calls for China to raise benchmark rates 300 basis points ASAP, saying occasional 25 point hikes mean little in the face of steeply negative real rates. With inflation out of control, the only thing preventing massive capital flight is the belief the yuan will appreciate.
    | Comment!
  • Apr. 12, 2011, 2:57 PM
    With credit choked off on the mainland, Chinese firms have borrowed $12.2B in the international markets in 2011, a 5-fold increase from last year. Denominated in dollars, these loans amount to a massive short on the greenback as Chinese borrowers bet on continued yuan appreciation - tomorrow's crisis, posted today.
    | 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
Find the right ETFs for your portfolio: Seeking Alpha's new ETF Hub