After feverish expectations that
China would let its currency appreciate, the WSJ points to a few market signals that suggest some speculators no longer see an imminent revaluation of the yuan.
A widely used proxy for assets denominated in Chinese
yuan, Hong Kong stocks are
down almost 5% so far this year, after rising 13% in 2004. The premium
quoted for the yuan on a lightly traded forward market has declined 25%
since the start of the year, a sign that traders are more confident the
currency will stay put. And the Shanghai
property market, another magnet for speculative cash, appears to be
cooling off. More here.