Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
Yuan and Dollar.
Now, for the first time, foreign investors can buy/sell Chinese stocks in yuan. Previously, only dollar was used in Hong Kong. This dual system allows internationalization of both yuan as well as China’s economy.
The 24 listed companies have a combined capitalisation of US$1.5 trillion, or 35 per cent of the Hong Kong stock market
The yuan-share counter model is expected to boost turnover by attracting overseas investors and contribute to the Chinese currency’s internationalisation
Now, for the first time, foreign investors can buy/sell Chinese stocks in yuan. Previously, only dollar was used in Hong Kong. This dual system allows internationalization of both yuan as well as China’s economy.
The 24 listed companies have a combined capitalisation of US$1.5 trillion, or 35 per cent of the Hong Kong stock market
The yuan-share counter model is expected to boost turnover by attracting overseas investors and contribute to the Chinese currency’s internationalisation
It's getting close to November low, for buying sth you need in China, the time is now
No RMB will get even weaker by end of the year. FED is going to raise interest rates while PBOC will probably cut its rates
RMB payment up. Again, I anticipate this is still very much undercounting real number due to absence of CIPS numbers
There are some figures thrown around for cips in the media. Allegedly 14 trillion $ worth of transactions annually.
Swift does 150 trillion annualy.
If rmb is 2.5% of swift that is 3.75 trillion worth of transactions.
No way to know how much rmb transactions within cips. But if it is 50%, then thats another 7 trillion.
For a total of almost 11 trillion between cips and swift. Out of 164 trillion in total cips amd swift transactions. Representing some 7% of total tranasctions.
In comparison, USD represents 40% of swift payments. Or 60 trillion. Assuming (i dont know) only 25% of cips payments, thats another 3.5 trillion. Or in total 39% of all tranasctions via cips and swift .
But another issue is that better equivalent to cips is not swift. But chips. And chips does 650 trillion of transactions annually. 95% of chips payments are in Dollars. However, both domestic (within US) and international payments are included. i can't find the percentages for that involved.
Swift does 150 trillion annualy.
If rmb is 2.5% of swift that is 3.75 trillion worth of transactions.
No way to know how much rmb transactions within cips. But if it is 50%, then thats another 7 trillion.
For a total of almost 11 trillion between cips and swift. Out of 164 trillion in total cips amd swift transactions. Representing some 7% of total tranasctions.
In comparison, USD represents 40% of swift payments. Or 60 trillion. Assuming (i dont know) only 25% of cips payments, thats another 3.5 trillion. Or in total 39% of all tranasctions via cips and swift .
But another issue is that better equivalent to cips is not swift. But chips. And chips does 650 trillion of transactions annually. 95% of chips payments are in Dollars. However, both domestic (within US) and international payments are included. i can't find the percentages for that involved.
I like the creativity of Argentinian govt here but I think their currency swap line with PBOC is going to run dry pretty soon at this rate
Also de-dollarization happening more toward EUR for now. I mean at the present time, the low PBOC interest rate vs the fed rate is causing quite the plunge in RMB. There is probably still concerns over currency stability and convertibility when it comes to RMB assets
Also de-dollarization happening more toward EUR for now. I mean at the present time, the low PBOC interest rate vs the fed rate is causing quite the plunge in RMB. There is probably still concerns over currency stability and convertibility when it comes to RMB assets