RMB deposits in HK rose by RMB 48 billion from November 2007 to April 2008. By May 2008 RMB deposits were RMB 77.68 billion (three times RMB 26.16 billion in May 2007, and 87 times RMB 895 million when RMB deposits first started in HK in 2004).
RMB deposit rates: 1% pa
Morgan Stanley: RMB still undervalued. Expect RMB 6.60 by end 2008, and 6.30 by end 2009 to the USD.
Credit Suisse: 6.75 (2008) and 6.15 (2009)
HSBC: 6.77(2008) and 6.33 (2009)
How to take advantage of the strength of the RMB? Well, you can't buy RMB because of foreign exchange control but you can buy Chinese companies listed in HK with RMB assets and RMB income streams. The dividends is in RMB but converted to HK$ which is pegged to the US$. Therefore, this is a proxy for investing in RMB.
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