中國經濟

Foreigners are piling into China’s free money trade. How long can it last?

CD players

Foreign investors including hedge funds, banks and wealthy families have piled into a $130bn carry trade that takes the other side of China’s attempt to support its currency.

It works like this. First, foreign investors lend US dollars to Chinese counterparties via currency swaps, receiving the equivalent in renminbi. They can usually earn a positive carry from the difference between the current exchange rate and the one year forward exchange rate, when the swap is unwound.

Then they use the RMB to buy interbank negotiable certificates of deposit - a type of short-dated government note. The combined yield from loaning the dollars and investing in bonds in a one year tenor can be up to 6 per cent, easily beating the sub-4 per cent yield available on a US treasury bond.

您已閱讀17%(776字),剩餘83%(3762字)包含更多重要資訊,訂閱以繼續探索完整內容,並享受更多專屬服務。
版權聲明:本文版權歸FT中文網所有,未經允許任何單位或個人不得轉載,複製或以任何其他方式使用本文全部或部分,侵權必究。
設置字型大小×
最小
較小
默認
較大
最大
分享×