China’s currency is set to record its best six months against the dollar on record as the country’s containment of coronavirus and economic recovery provide a competitive advantage investors expect will last well into 2021, reported the Financial Times.
Investors and analysts said China’s handling of the health crisis and subsequent economic recovery had laid the groundwork for a rally in renminbi-denominated bonds and stocks which has accelerated in the wake of the US presidential election.
“There is an appetite for China assets all over the world and I think that will continue,” said Paul Sandhu, head of multi-asset quant solutions at BNP Paribas Asset Management.
The onshore-traded renminbi has strengthened 8.4% against the greenback since the start of June to RMB 6.585. If the currency holds on to those gains until the end of November, it would top the 7.1% climb in the six months to the end of March 2008, during the global financial crisis. The currency is up more than 5.7% in 2020.