Expectation of currency appreciation drives up China’s Hot Money

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China’s foreign exchange reserves rose substantially despite its trade deficits.   Imagine how many people or investors are moving their money into China to bet on an incoming (and continuous) Yuan appreciation.

This is part of reason that caused Japan’s real estate bubble.

Related posts:

  1. Prospect of coming Yuan appreciation
  2. China reverses currency appreciation
  3. China: currency appreciation and inflation
  4. Yuan Exchagne Rate: Appreciation or Depreciation?
  5. Now comes currency diplomacy

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This entry was posted on Wednesday, April 14th, 2010 at 2:50 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.