Since June, the Chinese currency, known as the yuan or renminbi, has appreciated against a wide basket of currencies.

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There is an open door for investors to make money on China’s domestic bond markets. Here is why and how

Because investors get paltry yields in most of the developed markets, they are starting to consider investments in countries which were not really on their radar before. One area of focus has been China’s domestic bond market

14th Sep, 2020 - 6 min read

Since June, the Chinese currency, known as the yuan or renminbi, has appreciated against a wide basket of currencies. In particular, it has rallied against the USD though this reflects broad based USD weakness rather than aggressive yuan appreciation. USD/CNH exchange rates have fallen from levels of around 7.10 in June to current levels of around 6.85. This performance is at odds with the narrative of deteriorating US-China relations.

Indeed, many investors expected relations between the two superpowers to deteriorate ahead of the US presidential election in November. The reasoning was that Trump needed a foreign policy win before the election, which...

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