I don't understand this...are they giving you a better interest rate? Aren't they simply operating as a US bank (if they are FDIC insured). You really aren't investing in the Yuan...
Reasons to Open a Chinese Bank Account
21–30 of 118 posts
Re: Reasons to Open a Chinese Bank Account
#22Earlier quoted context omitted.
US Rent prices rose 12% last year http://www.marketwatch.com/story/rent-prices-rose-12-last-ye... Sugar Prices Hit 30-Year Highs http://online.wsj.com/article/SB1000142405274870350690457559... Gasoline Tops $3 a Gallon for First Time at Christmas http://www.dailyfinance.com/story/3-dollar-gas/19775116/ Unless you believe the official US CPI, which excludes food/oil
CPI doesn't exclude food/oil, only Core CPI does. http://research.stlouisfed.org/fred2/series/CPIAUCSL http://research.stlouisfed.org/fred2/series/CPILFESL The only major difference between CPI and Core CPI is that CPI is more volatile than Core CPI. This is why, for the purposes of year on year changes, Core CPI is usually reported. If we didn't do this, we'd get headlines like "OMFG, massive inflation, we are all d…
Fair enough; a misnomer on my part. However, it's disingenuous to tell the US consumers that the core inflation is 1.2%, when their gas price has doubled (from 2009)
Re: Reasons to Open a Chinese Bank Account
#23already opened 2 accts.
CCB and ICBC.
Re: Reasons to Open a Chinese Bank Account
#24Why would China do that? They already have plenty of foreign reserves ($2.85 trillion and growing - enough to buy Spain's GDP two times over), and they seem to be struggling with inflation. I guess the Chinese government is not as sure as the WSJ that the renminbi will appreciate.
Re: Reasons to Open a Chinese Bank Account
#25Earlier quoted context omitted.
US Rent prices rose 12% last year http://www.marketwatch.com/story/rent-prices-rose-12-last-ye... Sugar Prices Hit 30-Year Highs http://online.wsj.com/article/SB1000142405274870350690457559... Gasoline Tops $3 a Gallon for First Time at Christmas http://www.dailyfinance.com/story/3-dollar-gas/19775116/ Unless you believe the official US CPI, which excludes food/oil
CPI doesn't exclude food/oil, only Core CPI does. http://research.stlouisfed.org/fred2/series/CPIAUCSL http://research.stlouisfed.org/fred2/series/CPILFESL The only major difference between CPI and Core CPI is that CPI is more volatile than Core CPI. This is why, for the purposes of year on year changes, Core CPI is usually reported. If we didn't do this, we'd get headlines like "OMFG, massive inflation, we are all d…
> A better way to go would be to use moving averages, but that's too complicated to explain to reporters.
Yes, MA is the first thing that came to mind when reading your big paragraph. It would be a real shame if journalistic incompetency truly is the reason we have not adopted it.
Re: Reasons to Open a Chinese Bank Account
#26There is something called 'gold' my friend!
Re: Reasons to Open a Chinese Bank Account
#27Earlier quoted context omitted.
Ditto for the dollar. You're taking a bet on the Federal Reserve's competency in regulating the US economy.
Yeah, and given the results of the past decade I'm inclined to trust the Communists... Not that they're actually communists; they're just a really big national corporation, imho.
Indeed, more like a well-runned corporation with 1.3 billion workers.
Re: Reasons to Open a Chinese Bank Account
#28OK, that’s the upside from the depositor’s point of view. What is the upside from the Bank of China’s point of view? Given the massive dollar reserves that the Chinese government has accumulated from its trade surplus, why should they sell off renminbi in exchange for even more dollars? If the RMB/USD exchange rate is almost certain to increase, why would the bank want to give up an appreciating asset in exchange for a depreciating one?
Re: Reasons to Open a Chinese Bank Account
#29tl;dr version It's very unlikely to go down. It's very likely to go up. You won't miss out on a lot of interest elsewhere, as nowhere else is paying a lot of interest. It will diversify your portfolio. And, finally, it may offer you and your family something of a hedge against the decline of the U.S. economy.
It seems that if the goal is to diversify, there are plenty of other options. That isn't to say that this one is bad, but I'm deeply skeptical of any investment once the press starts running articles about why you should buy into it.
Re: Reasons to Open a Chinese Bank Account
#30It's not a floating currency, it's directly controlled by politicians. Holding yaun is taking a speculative currency bet on the competency of the Chinese Communist Party to successfully manage the Chinese economy.
If it had to, couldn’t the party trash the currency (from an international investor’s point of view) without trashing the economy?