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9 pts

Opinion on  WisdomTree China Yuan Fund (CYB)
The Chinese currency peg is doomed

Jul 03, 2008 08:54 PM UTC
India_flag_background
Return Risk
-15.42% LOW
Sr. Associate

Read this excellent article
http://www.dnaindia.com/report.asp?newsid=1175261

257 billion dollars in inflows in the first five months of 2008

12 year high inflation  which can only be controlled if the currency has value

Rising gold imports as people hedge against inflation.If the government does not intervene people will lose faith in the currency and this will be avoided.China has too many geopolitical problems as it is with income disparity between the prosperous South and coastal areas and the inner China.

http://in.reuters.com/article/asiaCompanyAndMarkets/idINPEK34...

The government is on the ropes and will have to let the yuan go free soon.


CYB:  This call was made on 07/03/08 @ $25.6
Rating:   Positive   $25.6 (07/03/08)
Gain/Loss:   -1.95% in 189 days
Target:   in > one year
Allocation:   0.5% of portfolio


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