US individual investors bought US$79.9 million in yuan structured notes since last month, a record amount as speculation increases that an economic rebound will spur China to allow the yuan to rise at a faster pace, South China Morning Post reported. The median forecast of analysts is for the renminbi to rise 2% this year, following a 1% increase in 2012. The highest leveraged of these yuan structured securities return yields of five times the yuan’s offshore appreciation rate. China’s offshore exchange rate tracks the official mainland rate, which is allowed to fluctuate up to 1% from an officially set level.
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