Does anyone know a way to invest in the Chinese Yuan?

Question

What sort of options are there for something that can be done from the USA? Is there anything like a Chinese bond fund traded on any of the US exchanges?

My friend thinks it is almost guaranteed to do better than the dollar in the next few years.

Answer 1

Ah, yes, the nation's oldest stock exchange, Philadelphia, has made trading on world currencies much, much easier. Check out the link.

While you are at it, consider adding Japan's Yen to your short list of foreign currencies.

(You may want to hold off on the Euro, Europe has a comparable set of problems of their own and that might be reflected in its price in the not too distant future as well.)

Answer 2

I know an indirect way. Buy a mutual fund that invests in Chinese stocks or buy Chinese stocks or buy them both. A rise in the Yuan will translate into a rise in the comparative value of the stocks when translated into U S dollars. Actually, the Chinese stocks will most likely outperform the U S stocks during the next 5, 10 and 20 years so you will potentially receive a double benefit.

Here are a couple of Chinese stocks traded as ADRs: CHL and ACH

Here are a couple of closed end mutual funds currently selling at whopping discounts to net assets: CHN, TDF

Answer 3

Just buy a mutual fund or ETF that invests in Chinese stocks. You will get the benefit of effectively holding the Yuan. D

Answer 4

I don't know of any ways, but even if there were, would you really want to? The Yuan is partially pegged to the dollar. Unless you believe that the Chinese govt is going to change their policy and let the Yuan appreciate freely, I'd stay away.

Answer 5

I'd suggest you a big NO.