Overall, real estate should be a net beneficiary of
the depreciating yuan if investors are increasingly drawn to the asset class, providing additional pricing support.
However, the impact of
a depreciating yuan on U.S. economic growth and demand for real estate space is likely to be decidedly mixed.
Reasons for China tightening its grip on cryptocurrency have run the gamut from Chinese investors using bitcoin to get money out of the country, to the struggling and
depreciating Yuan.
Since late last year, Beijing has been cracking down on overseas investment as wads of cash flew out of the country, adding downward pressure to an already
depreciating yuan.
Not exact matches
Trinh predicts the
yuan will
depreciate another 2.5 percent by year - end to 6.56 per dollar, while Lai at Daiwa Securities Co. has a target of 6.6, a level last seen in early 2011.
A premium has been in existence in the Chinese markets for the past few weeks as the
yuan has
depreciated — on peaks, this has been as high as $ 30 between various markets.
It is not in the Chinese interest to raise the level of shouting / tweeting, nor to allow the
YUAN to
depreciate.
The last blog post weighed the harm China would do to itself if the
YUAN were to
depreciate for it would then have to face the acrimony of many nations it is trying to placate.
The last time the
yuan was this strong relative to the dollar (August 2015), the People's Bank of China (PBOC) caught markets off guard by significantly
depreciating the currency.
Bitcoin's popularity in China may be attributed to investors looking to the currency as protection against the
depreciating Chinese
yuan.
Watch this video to find out more about China's GDP, Internet coverage, Smart phone use... and how much the
Yuan has
depreciated to the dollar.
Because the
Yuan is
depreciating, Chinese investors need to buy a property or something here as soon as possible.