Investors that are seeking exposure to the Chinese currency are anticipating it to appreciate against the dollar, according to the report. About $11.3 billion of debt has been issued this year in the renminbi bond market, according to Dealogic.
Market Vectors Renminbi ETF (NYSEArca: CHLC) was launched in early October. PowerShares Chinese Yuan Dim Sum Bond Portfolio (NYSEArca: DSUM) was launched Sept. 23, while the Guggenheim Yuan Bond ETF (NYSEArca: RMB) came to market Sept. 22. The Chinese-yuan denominated bonds included in the indexes are issued by both Chinese and non-Chinese companies. The Chinese yuan is a base unit of the Chinese currency system, called the renminbi. [The Growth Story Behind China’s Economy, ETFs]
“ETFs could distort renminbi bond pricing by pushing yields too low,” Dariusz Kowalczyk, Hong Kong-based strategist at Crédit Agricole, said in the FT story.
Tisha Guerrero contributed to this article.
