August 29, 2006

Possibility of Hedge Fund Invasion Ruled Out

Recently, I had written a post titled "China Must Modify Policies on Foreign Investment" about how China must make changes to its foreign investment policies. Today, I am going to write a post on hedge fund, which is relevant to that post.

Despite the recent fluctuations in the exchange rate of the Renminbi (RMB), China's currency, international hedge funds are unable to flood the country and profit from the future appreciation of the RMB. Strict management of capital account inflows and outflows prevents hedge fund and other speculative money from invading China to bet on the RMB's value. Although overseas hedge fund managers want to buy more RMB, they can't do it because the country does not provide corresponding financial derivatives.

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WOW! It is a good blog. I just find it from globeofblogs. I am not a big blogs fan, but your blog is good, thank you.

Posted by: Robert | Sep 3, 2006 12:11:06 AM

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