How to Buy Yuan? Options

[Fence]

So Jim Rogers is getting out of USD and into the Yuan, etc. But can you buy the Yuan? How? I don't want to buy the stocks (e.g. FXI) given the potential bubble but some currency would be good if the USD peg gets changed. Are there proxies like the Hong Kong dollar? Ideas please.

[Panas]

So Jim Rogers is getting out of USD and into the Yuan, etc. But can you buy the Yuan? How? I don't want to buy the stocks (e.g. FXI) given the potential bubble but some currency would be good if the USD peg gets changed. Are there proxies like the Hong Kong dollar? Ideas please.

When the Yuan gets stronger....won't that mean that other Asian currencies will strengthen too? I see in this weeks Moneyweek that the Thai stocks are very cheap because of a little uncertainty in the country over the last year. Maybe this would be a good cheap way into the Asian boom?

[DrBubb]

The Hong Kong dollar is not a proxy for the Yuan. It remains pegged to the US dollar.
But the peg may be changed at some point.

In the meantime, I think of HK property as be a super-charged version of the RMB, because money is beginning to flood
across the border from China to HK. Thanks to a weaker currency, property looks cheap here (to some chinese), and the restrictions on buying second and third properties in China are becoming tougher. Mainland chinese are finding it better to buy here.

[PricedOutNative]

You beat me to this question!!

I’m currently almost in a panic (yes very bad way to invest ) to buy Yuan, I‘ve even considered going down to Thomas Cook and buying notes but I’m concerned that in a few months there will be a reissue or something and those notes will be worthless, obviously the Yuan is not like most currencies, I’m not even sure if you can get them here.

My logic is that it’s artificially undervalued but at some point soon it will have to float, at least relative to the pound!

Anyone thought about this investment opportunity?

[tomhatcher]

You beat me to this question!!

I’m currently almost in a panic (yes very bad way to invest ) to buy Yuan, I‘ve even considered going down to Thomas Cook and buying notes but I’m concerned that in a few months there will be a reissue or something and those notes will be worthless, obviously the Yuan is not like most currencies, I’m not even sure if you can get them here.

My logic is that it’s artificially undervalued but at some point soon it will have to float, at least relative to the pound!

Anyone thought about this investment opportunity?

Yes! Sounds like almost a sure thing to me. If you learn how to buy Yuan, please post.

[DrBubb]

If you live in Hong Kong,
and open an account in Shenzhen, you can buy up to HK$40,000 worth per day. (i think that figure is right)

What some folks here (not me!) are doing, is borrowing against their HK properties at 2.5%,
and investing the money in Rmb, which earns over 4.0% (before tax)

It is not as easy as it used to be, because when buying Rmb, the spread between Bid/ and Asked is up to 1%

So one year's worth of income spread is lost in in-and-out transaction cost. However, you get to keep any
capital appreciation, which looks reasonably likely to me. But at some point (even within the next year), the
peg may be changed.

[Fence]

Nice to see old threads don't die!

Problem may be solved if you believe the Chinese market has bottomed (but who is buying their exports?).

I also found the ETF CNY (a bit new though).

[Saberu]

I think the Chinese export market still has legs, give it another couple of years until yuan is a better buying oppurtunity.

My current strategy is half gold/ half silver then investing the half gold into yuan anywhere between 2-10 years from now depending how fast China's export market dies and is converted to domestic.

Any good investor knows it's good to diversify which is why i'm not going to be fully in gold. Ofcourse if gold is rocketing along at the time I am going to switch to yuan then I'll stay a while longer.

Ofcourse if I find myself more wealthy than expected in a years time I might ask DrBubb for some advice regarding buying property in Hong Kong as I think he is spot on especially when the Chinese yuan is due to become so extraordinarily stronger than it currently is coupled with the property restrictions in China.

Infact a quick cheeky question, would it be easy to BTL in Hong Kong and do they have estate agents there to manage it all for you like they do in the UK? If I need to take a mortgage out on half the property I'd need the rental revenue to cover it.

Also the property would need to be reasonably priced as I know Hong Kong still isn't cheap, for example an apartment that doesn't cost more than £150-200k.

Just did a quick check and I found an apartment in Central for under £250k, thats pretty good isn't it?