China (CNY, Yuan) Economic & Currency Analysis

China (CNY, Yuan) Currency FX Analysis

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HOLD

China SWOT Statistics

Strengths + Opportunities = 22

Threats + Weaknesses = 21

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Yuan has great long term potential.

The People's Republic of China is the world's second largest economy by both nominal GDP ($4.99 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009). China is the world's fastest-growing major economy, with an average growth rate of 10% for the past 30 years. Industry and construction account for 46.8% of China's GDP China alone accounts for around 8% of the total manufacturing output in the world. Some of china’s major industries include mining and production of ore, iron, steel, aluminum, and coal. China also manufactures machinery, armaments, textiles and apparel, petroleum, cement, chemical, fertilizers, food processing, automobiles


Yuan Currency Analysis Update

China (CNY) is a fast growing communist country with the largest population in the world. China's Fundamental Currency Analysis (short term investment): China’s currency is moderately undervalued. Purchase price parity shows that China’s currency is approximately 40% undervalued, however, the other three valuation approaches show that China is fairly valued. China's Value Investor Survey (short term investment): China’s economic environment is very unfavorable for long term economic growth due to the lack of economic freedom, government transparency, and the SWOT analysis. China's Currency Trading Strategy: An undervalued currency, average investment flow potential and an unfavorable business environment leads to a neutral outlook for Chinese investments.


Factors That Positively Affect The Yuan

  • Cheap Labor Today, China has a population of 1.3 billion people, or about 4 times larger than the population of the United States. China's current labor force is a little over 800 million. Over 40% of those 800...

Factors That Negatively Affect The Yuan

  • Academic and Scientific Misconduct in China China's president, Hu Jintao, has stated one multiple occasions that China needs to move from a labor driven manufacturing country to one that focuses on the knowledge based business of discoveries....
  • Air Pollution In 2008, China surpassed the United States as the largest global emitter of greenhouse gases by volume. The increase in China's emissions is primarily due to the country's reliance on coal, which...