Reported 2 months ago
The article discusses the Chinese yuan carry trade, highlighting how it differs from yen-funded carry trades. While both involve borrowing low-yield currencies to invest in higher-yield assets, the yuan trade faces limitations due to its non-convertibility. Yuan carry trades are mainly conducted by Chinese exporters and foreign investors looking to capitalize on China's financial market. The shift in global interest rates raises questions about the sustainability of these trades, particularly in light of potential domestic demand changes in China.
Source: YAHOO