China wasn’t just rattled by a major quake today: inflation is also shaking up the country and its exchange traded funds (ETFs).
Trade in the shares of 45 listed Chinese companies will be suspended tomorrow. They’re in the Sichuan province, where the earthquake that has killed thousands hit, reports Scott Tong for Marketplace.
Within hours of the quake, the central bank also announced steps to tighten liquidity in the banking system, and numbers continue to show that inflation is near a 12-year high. Consumer prices in April shot up 8.5% in April over last year. The Chinese currency is up 15% against the U.S. dollar.
There’s a new exchange traded note (ETN) on the market for investors looking to hedge the dollar if the Chinese Renminbi continues to rise in value: Market Vectors Chinese Renminbi (CNY).