So I have to play more before the price go up

If china has to sell us treasuries and euro to fund internal issues what does that mean for the rest of the world.  If china stops buying us debt then the US will have to face up to spending more than it makes and the euro should rebalance lower. Questiion is when does this start to happen.  How imminent is chinas municipal issue.

China says foreign direct investment jumps
June 12, 2010 - 3:24PM
               
Foreign direct investment in China rose 14.3 percent year-on-year in the first five months of 2010, the government said Saturday, in an announcement that could add to mounting concern over inflation.
Foreign companies invested 38.9 billion US dollars in the world's third-largest economy from January through May, commerce ministry spokesman Yao Jian told reporters.
That marked an acceleration from the 11.3 percent growth logged from January to April and the 7.7 percent growth of the first quarter.

In May alone, foreign direct investment totalled 8.1 billion US dollars, a jump of 27.5 percent over the same month in 2009, Yao said.
The data includes investment by overseas companies in industries such as manufacturing, real estate and agriculture but excludes money put into banks and other financial institutions.
The figures were released a day after the government said the consumer price index, the nation's main gauge of inflation, had surpassed an official target in May to rise a surprising 3.1 percent year-on-year.
The increase outpaced a 2.8 percent rise in April and overtook Beijing's target of 3.0 percent for the year, which analysts said could potentially increase pressure on policymakers to hike interest rates.

Link here:
http://news.smh.com.au/breaking- ... -20100612-y4cv.html

What are the interest rates in china.

China Interest Rate

China benchmark interest rate stands at 5.31 percent. In China, interest rates decisions are taken by The Peoples's Bank of China Monetary Policy Committee. The PBC administers two different benchmark interest rates, the benchmark lending rate, which is the one year PBC lending rate and the benchmark rate of central bank lending that is the rediscount rate.

Link here:
http://www.tradingeconomics.com/ ... ate.aspx?symbol=CNY

Let's look at the bright side, if China's economy is going down, it means there are more WG's will be available on the market. That's a good news for me

Wow.  With a 5.31% interest rate and inflation taking off in this economy it seems like an investment in the yuan is a pretty good bet. If inflation contiunes there will increase interest rate more to contain it or let the currency appreciate.  The currency appreciation though talked about alot, I'm not sure that will happen soon.  Any. Thoughts on that.

Don't hold your breath. Currency appreciation would be at a snail's pace at best and you cannot get hold of that much RMB to start as it's not freely traded. You missed the big jump in the RMB where it adjusted upward to the US$ by 25% between 2007 and 2009. I bought quite a lot of RMB in 2003 and again in 2006 through currency black marketa in HK and invested the money in several properties in 2003 and 2006. Reluctant to sell the properties because of the 25% capital gains tax.

With lots and lots of wage rises in the past months, I'm aint surprised, we're going to see very high inflation in China for the next year or two.

what is the best way to get Yuan exposure for a non Chinese.  assuming that opening a bank account, converting dollars to yuan and earning the interest is not possible.  also not a big fan of the stock market--too much volatility.  waiting for a yuan appreciation does not seem like a big deal and it seems like odds on eventually it will happen and you are paid to wait at 5.31%

I'm figuring a good way to ride the wave is to buy property in Hong Kong.  There's so much cash flowing from PRC into high-end properties, HK is bucking the trend on worldwide property prices ... I've seen reports that as much as 40% of high-end purchases are cash purchases with mainland money ... and the more cash the PRC big fish put in HK, the safer a play it becomes: they won't do anything to undermine the value of their stash.  

Think in terms of Monaco's position in Europe, translated into Asia.

Property prices in HK are way too high and ridiculous to buy at this point in time. The traditional way is to open a RMB account in HK and you can convert upto US$3,000 per day and deposit it into the HK RMB account. For converting big amounts of money, you need to know a forex agent who will convert US$ to RMB in one shot. You will need to open a RMB account in China. They can do up to amounts of HK$40 million in one go and you TT the money to them and they will convert it and deposit it into your China account. There are risks though and suggest you get your friends to recommend an agent.

If bsnake is a an Australian, particularly Sydney, I can introduce him to a forex trader in Burwood that I and a friend use.

A forex trader would not be able to do such a transaction. If you want big amounts transferred into RMB you must go through the black market. These black market operators are very common in HK.

Thanks for the info.  In opening a rmb account in hkg can you then wire the money or do you need to show up with the cash on the spot.  If you cam wire te money then it is pretty easy sounds like for an individual to get some rmb exposure.  The interest rate is the 5.31%?

You would first have to show up to open an account. After this you can wire the money in and give a standing instruction to convert your US$ to RMB daily. Interest rate is not 5.31%, it's actually a lot less but better than HK$ or US$ interest which is nothing now. You can get more technical information at http://www.hsbc.com.hk/1/2/hk/banking/rmb

Thanks,  notice that South korea is now imposing regulation on its currency somewhat to control the speculators

Don't you think that given all the trouble and the fairly low rate of return over two years that there are better options, even outside of the share market?

If it's just about the interest rate then you can 6.25% at call here in Australia. More if you're willing to lock your money away in a term deposit.

not if you compare to Monaco, Luxembourg, and other similar havens ...

Fact is at current prices you can buy and get a cash-on-cash return.  Rental rates more than cover the mortgage.  Supply is limited, demand is increasing, and in a weak economy interest rates are set to stay low.  

Now I'm NOT saying you should go and buy a typical Sun-Hutcher-Son new-build at inflated super-hyped prices.  Nor buy into one of the areas that have recently seen rapid growth.  

But go out and do your homework, find the right niche, there are bargains to be found.  

True it takes some guts ... but as we know the time to buy is when blood is running in the streets ... and we just happen to be in one of the few places in the World with good fundamentals, with our currency pegged to a weak economy and our local economy supported by a strong one.