China scares investors. The value of the Yuan has fallen sharply. The calculation behind is to get rid of speculators. To liberalize the exchange rate is the only alternative. Beijing is currently fighting against speculative capital and is trying to push the value of the Renminbi (Yuan). India, Brazil and other emerging economies suffer from massive capital outflow and try to stabilize their currencies.
China's central bank PBOC wants to discourage speculative capital. They have to cool the overheated property markets and they must correct the misallocation of shadow banks and at the same time they shall help the export enterprises.
China's central bank PBOC wants to discourage speculative capital. They have to cool the overheated property markets and they must correct the misallocation of shadow banks and at the same time they shall help the export enterprises.
