If US interest rates are cut, there will be a $1 trillion avalanche as Chinese companies sell dollars - Zheng

MSN - 27/08
If the U.S. cuts interest rates, Chinese companies could sell $1 trillion worth of dollar-denominated assets, pushing the yuan up by as much as 10%. This was predicted by Steven Zheng, CEO of Yurison SLJ Capital.

(Bloomberg) -- If the U.S. cuts interest rates, Chinese companies could sell $1 trillion worth of dollar-denominated assets, pushing the yuan up by as much as 10%. This was predicted by Steven Zheng, CEO of Yurison SLJ Capital.

The exchange rate is currently the biggest risk that is not properly priced in the market as a whole, and the renminbi could have an especially large impact.

``You should expect an avalanche,'' Zhen said of the impact of the repatriation of the renminbi. He thinks the yuan will probably appreciate and that the Chinese government will all...
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