Comments on: Futures market calls a 2.7% appreciation in China’s currency http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/ Thu, 24 May 2012 00:51:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: EdMcGon http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/comment-page-1/#comment-5236 EdMcGon Wed, 10 Mar 2010 13:57:44 +0000 http://jubakpicks.com/?p=3322#comment-5236 gusspresso24, Good point. I would add that companies which sell almost exclusively in the domestic Chinese market should make out very well with an RMB/$ de-peg, whereas Chinese exporters may gain in market share but lose in sales, making the whole change negligible (possibly negative if they lose enough business because of it). gusspresso24,
Good point. I would add that companies which sell almost exclusively in the domestic Chinese market should make out very well with an RMB/$ de-peg, whereas Chinese exporters may gain in market share but lose in sales, making the whole change negligible (possibly negative if they lose enough business because of it).

]]> By: asmithee http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/comment-page-1/#comment-5220 asmithee Wed, 10 Mar 2010 09:04:51 +0000 http://jubakpicks.com/?p=3322#comment-5220 Regarding renminbi and Yuan: One is the name of the currency and the other is the unit of the currency. Most countries don't have a separate name for each. The U.S., China, and the U.K. are three of the very few countries that do. Renminbi is analogous with the U.S. greenback and the U.K. sterling. And, the yuan is analogous with the U.S. dollar and the U.K. pound. Regarding renminbi and Yuan:

One is the name of the currency and the other is the unit of the currency. Most countries don’t have a separate name for

each. The U.S., China, and the U.K. are three of the very few countries that do. Renminbi is analogous with the U.S.

greenback and the U.K. sterling. And, the yuan is analogous with the U.S. dollar and the U.K. pound.

]]> By: gusspresso24 http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/comment-page-1/#comment-5214 gusspresso24 Wed, 10 Mar 2010 04:14:51 +0000 http://jubakpicks.com/?p=3322#comment-5214 hey ifxeyes, Ed has spelled out one of the two major impacts of currency fluctuations. The other here, is that if a chinese stock is trading in USD, there is a direct benefit to US stock holders of an appreciating Yuan. Say the market cap of a company is 100 as measured in Yuan. This would be equivalent to 14.65 USD converted at a rate of 6.8264 Yuan per Dollar (100 divided by 6.8264). If the Yuan appreciates/strengthens in value against the dollar so that the conversion rate is 6.5 Yuan per Dollar (it takes less Yuan to buy a single dollar), and assuming the value (in Yuan's) of the company has not changed (100), the market cap of the company on the US exchange would have gone up from 14.65 to 15.38 USD (100 divided by 6.5). hey ifxeyes,
Ed has spelled out one of the two major impacts of currency fluctuations. The other here, is that if a chinese stock is trading in USD, there is a direct benefit to US stock holders of an appreciating Yuan. Say the market cap of a company is 100 as measured in Yuan. This would be equivalent to 14.65 USD converted at a rate of 6.8264 Yuan per Dollar (100 divided by 6.8264). If the Yuan appreciates/strengthens in value against the dollar so that the conversion rate is 6.5 Yuan per Dollar (it takes less Yuan to buy a single dollar), and assuming the value (in Yuan’s) of the company has not changed (100), the market cap of the company on the US exchange would have gone up from 14.65 to 15.38 USD (100 divided by 6.5).

]]> By: Run26.2 http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/comment-page-1/#comment-5164 Run26.2 Tue, 09 Mar 2010 17:49:54 +0000 http://jubakpicks.com/?p=3322#comment-5164 China Building Bubble: "Beijing had an office vacancy rate of 22.4% in the third quarter, the ninth-highest of 103 markets tracked by broker CB Richard Ellis (CBRE) (CBG)." http://www.businessweek.com/magazine/content/10_09/b4168018737687.htm?chan=innovation_special+report+--+eye+on+architecture+2010_special+report+--+eye+on+architecture+2010 China Building Bubble: “Beijing had an office vacancy rate of 22.4% in the third quarter, the ninth-highest of 103 markets tracked by broker CB Richard Ellis (CBRE) (CBG).”

http://www.businessweek.com/magazine/content/10_09/b4168018737687.htm?chan=innovation_special+report+–+eye+on+architecture+2010_special+report+–+eye+on+architecture+2010

]]> By: EdMcGon http://jubakpicks.com/2010/03/09/futures-market-calls-a-2-7-appreciation-in-chinas-currency/comment-page-1/#comment-5159 EdMcGon Tue, 09 Mar 2010 17:28:09 +0000 http://jubakpicks.com/?p=3322#comment-5159 Bad news in another emerging market, with significant implications: http://www.ft.com/cms/s/0/dbf4284c-2afa-11df-886b-00144feabdc0.html Just what the U.S. economy doesn't need: a trade war with Brazil. Smoot-Hawley redux? Bad news in another emerging market, with significant implications:
http://www.ft.com/cms/s/0/dbf4284c-2afa-11df-886b-00144feabdc0.html

Just what the U.S. economy doesn’t need: a trade war with Brazil. Smoot-Hawley redux?

]]>