Reported about 2 months ago
Despite the recent collapse of the yen carry trade due to a surge in Japan's currency, analysts suggest that the yuan carry trade may be more resilient. Unlike the yen version, which relied heavily on speculators, the yuan strategy predominantly involves exporters and multinationals. As China's central bank maintains a dovish stance, trades that borrow yuan to invest in higher-yielding assets could thrive, showing a 0.5% gain this quarter while yen-funded alternatives fell significantly.
Source: YAHOO