[mattduke]

What are the options available to me as an American for owning Renminbi? I would like to own Renminbi-denominated government bonds and possibly corporates too. I would also consider Renminbi-denominated interest-bearing bank accounts. Everbank accounts do not pay interest. Would a Forex broker have options to help me? Do I need to open a bank account? I would appreciate help from anyone knowledgeable in this area. Thank you for helping!

[TheTurtle]

Although I have about 500 yuan laying in my dresser drawer from my last trip to China and it is currently worth more than I paid for it, I'm not really convinced that renminbi is that great an investment. I suspect that the Chinese economy is pretty much walking hand-in-hand with the US economy and when one collapses the other will follow along.

Just my opinion, of course. I know nothing of investment strategies.

[Bas]

$this->bbcode_second_pass_quote('TheTurtle', 'A')lthough I have about 500 yuan laying in my dresser drawer from my last trip to China and it is currently worth more than I paid for it, I'm not really convinced that renminbi is that great an investment. I suspect that the Chinese economy is pretty much walking hand-in-hand with the US economy and when one collapses the other will follow along.

Just my opinion, of course. I know nothing of investment strategies.

[MrBill]

The Chinese still have capital controls, so with a few exceptions there is very little you could buy in terms of assets even if you had Renminbi.

Bonds and local shares are only for domestic investors. Most foreign direct investment is through a joint venture with a local partner that then either steals your technology, syphons off the profits or both.

If you enter the Chinese shares listed on the HK market you pay multiples over domestic shares that are already over-valued and trading at 50+ P/E ratios.

Isn't it convenient that the Chinese export both manufactured goods and capital, but foreign investors are not allowed to invest in China? And some wonder why we have global imblances, eh?

The best proxy investments are to buy the shares of German and Swiss manufacturers, and other companies that sell directly to China, so that they benefit from a strong euro and healthy Chinese re-exports back into the EU as well as strong domestic capital spending on infrastructure in China.

Otherwise you can get yourself a well-educated Chinese girlfrend who you can 'trust' to invest on your behalf? ; - )

[mattduke]

Thanks for the help Mr Bill. I have my heart set on the currency itself as opposed to shares at this point. I have owned shares but have sold them off as I think they are experiencing a bubble over there. Do you know if it possible in a typical consumer forex account to own Renminbi on margin?

[lapulapu]

Mattduke: you might be out of luck. You have to be in Hong Kong. Maybe HSBC Private Banking can help, but you have to have their minminal net worth before they let you in the club. I know an American that brought condos (Chinese govt approved for foreign investment condos) before the RE run up so he's benefitted from both holding a RMB asset and paying the mortgage with USD AND RE appreciation.

Try opening a HKD account with HSBC. HKD should follow the RMB since it's "1 country 2 system" now part of China.

Like Mr. Bill was trying to get you to do: what is the endgame that you're trying to achieve by holding RMB that you cannot replicate otherwise?

[MrBill]

$this->bbcode_second_pass_quote('mattduke', 'T')hanks for the help Mr Bill. I have my heart set on the currency itself as opposed to shares at this point. I have owned shares but have sold them off as I think they are experiencing a bubble over there. Do you know if it possible in a typical consumer forex account to own Renminbi on margin?