UOB RMB DEPOSITS

[joyinvestor]

Hi Dennis and all
UOB offers RMB deposits, see link

http://www.uob.com.sg/personal/promotio ... minbi.html

Can be in fixed deposit or for premium customers in savings

I am interested in putting my cash in it in view of the potential appreciation of RMB. PM Wen Jiabao recently said China will consider yuan appreciation to counter inflation. Meanwhile US is printing money. So RMB can only go up righ?

Your views please?

[leslie_foo]

Hi Dennis and all
UOB offers RMB deposits, see link

http://www.uob.com.sg/personal/promotio ... minbi.html

Can be in fixed deposit or for premium customers in savings

I am interested in putting my cash in it in view of the potential appreciation of RMB. PM Wen Jiabao recently said China will consider yuan appreciation to counter inflation. Meanwhile US is printing money. So RMB can only go up righ?

Your views please?

That can be very difficult to predict.

[lootster]

Have you seen the historical price of RMB/SGD? Is it up or down?

[cllau34]

I thought about the rise in RMB last year and went to open a RMB FD account with Bank of China. The rate at that time was 1 SGD = 4.9 RMB. Now the rate is 1 SGD = 5.2 RMB. Making a paper loss now.

Dennis has shared that if you are holding USD, you stand to gain by converting USD to RMB. But if you are holding SGD, you don't benefit because SGD becomes even stronger as RMB rises, at least for last 2 years. Now it is highly likely MAS will allow SGD to further strengthen to fight inflation, do you think it is a good time to hold RMB?

[Dennis Ng]

I thought about the rise in RMB last year and went to open a RMB FD account with Bank of China. The rate at that time was 1 SGD = 4.9 RMB. Now the rate is 1 SGD = 5.2 RMB. Making a paper loss now.

Dennis has shared that if you are holding USD, you stand to gain by converting USD to RMB. But if you are holding SGD, you don't benefit because SGD becomes even stronger as RMB rises, at least for last 2 years. Now it is highly likely MAS will allow SGD to further strengthen to fight inflation, do you think it is a good time to hold RMB?

yup, in last 10 years, S$ strengthened against RMB by about 11%, from 4.6 in year 2000 to 5.2 now.

On the other hand, in last 10 years, RMB strengthened 20% against US$ from 8.28 in year 2000 to 6.6 now.

I don't put money into RMB deposits, interest rates are too low, cannot even beat inflation (so you're getting Poorer, not Richer, over time). To benefit from possible Growth in China, I invest into:

1. UOB SSE 50 (linked performance to Shanghai stock index).

2. China stocks listed in HK, eg. China Unicom (mobile phone operator) and China Mobile.

3. Singapore companies expanding in China eg. Breadtalk.

[joyinvestor]

Thanks so much for your comments and advice.

[JIMMYKKL]

Dr Chan said RMB is not free float. It will only rise against US$ gradually... @6% a year.

other currencies will rise or fall against US$ from time to time. therefore, it is not necessary one will gain from RMB appreciation against US$.

China wish to Internationalise its currency yet worried the impact as it is a very complicated issue. there were many "hidden hand wealthy people" since China first open its Economy and these people could be the real wealthiest in China currently hibernating quietly.

If stirred, nobody knows what can happen just like if HK$ will to un peg from US$ , nobody knows what will happen and in Dr Chan view it will not un peg as if it will, it would had un peg in 1997. He said HK$ was 5 to 1 US$ and fell to $10 and then peg to 7.8 (between 5 and 10, Chinese like 8 )

still better to use HK as window to test water first....

now that China is wealtier , coupled with it is also bigger social problem as rich get richer and poor get poorer. it becomes Money make Money. the poor has only "labour" to offer and it becomes cheaper from Mainland competition as about 150 people come to HK everyday.

chinese is beginnning tilting left again evidence from cctv playing songs from mao's time. he reckon after today's result, our boss may be more left too.

pls view the following n exercise individual judgement pls.......
http://www.youtube.com/watch?v=aLVrAdd7 ... er&list=UL - Jap YEN will fall to 90 by August, does that means US$ will rise and commodities will fall? is it another conspiracy theory at work?

http://www.youtube.com/watch?v=cjwkvNYV ... playnext=8 - chinese using HK as pool to pool US$. to use spore to attack. Dr Chan said if Spore becomes 2nd offshore centre for RMB, local banks will benefit. so a smokeless war is quietly in the making......