How to Invest in Chinese Currency RMB in Singapore?
The rise of China has led to many people wanted to invest in the Chinese currency RMB as they think that with the economic growth of China, the RMB will continue to rise, especially RMB is currently undervalue against other currencies. The problem with “investing” in the RMB is that there is no foreign currency deposit in RMB for investors to deposit in. So how does one play the RMB currency in Singapore? This question was posted to me a few times. As the RMB is not a free currency that has offshore market, it is virtually not possible to buy RMB outside China. One way to play it is to invest in the Chinese stock market. This is not a direct play, however, as the value of the Chinese stocks are influenced by other factors which may not be the same as those factors that affects the currency. Nevertheless, if the general growth for the country continues, the equity market should continue to perform well, so will the currency. A word of caution, as the Chinese equity market has run up muc
