Alert: China to Issue Renminbi Bonds Internationally
• Economic Policy Journal/Financial TimesIt's only a first step but, this is big. A new player has entered the ring to compete against the dollar and Treasury securities.China’s finance ministry said China will issue Rmb6bn ($879m) of bonds in Hong Kong on September 28, in a move to “improve the international status” of the currency and to help mainland companies raise funds in the offshore bond market, according to FT. Thank you Mr. Wenzel for keeping us informed! http://www.economicpolicyjournal.com/2009/09/alert-china-to-issue-renminbi-bonds.html
Why is this an "alert"? The only thing it should be an alert for is to saavy investors who want to by remnibi backed bonds via ETF offerings. Why is China in the wrong because the economics of the United States has been retarded for 40 years? If China is outgaming us good for them and I'm buying in. Then I will cash out partially later in devalued FRNs receiving a 2-for-1 bonus.