Dollar Depreciation Setting Up a Yuan Trap

A bit from a recent Haitong market summary.

Wallst.cn: 海通姜超:美国加息迟到或为中国埋下货币陷阱
Risk is delayed. Since February the domestic capital market improved significantly, and improve the environment both at home and abroad related to the sharp depreciation of the dollar, pushing short-term appreciation of the yuan, it is expected to improve the capital outflows from overseas. Domestically the economy short-term improvement, while inflation remains moderate. But the United States is not skipping a rate hike, only delaying it, dollar depreciation is a beautiful trap. For the purposes of the RMB exchange rate appreciation of the short-term of course very happy, but did not change the substance of money printing, inflation continued to rise, negative consequences of improved economic conditions gradually reflect, in fact, can not withstand the storm.

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