Valuation-wise Renminbi Starting to Look Cheap: Le

The video discusses the current state of the RMB and its valuation against the Dollar China, highlighting the impact of China's stimulus measures. It explores the PBOC's stance on FX depreciation and market equilibrium, noting the gradual weakening of the RMB. The analysis extends to the Taiwan Dollar, emphasizing its potential due to strong equity inflows and low correlation with other currencies.

What is the current valuation status of the RMB on a basket basis?

• Undervalued

• Overvalued

• At equilibrium

• Highly volatile

How has the PBOC responded to the RMB's depreciation?

• By aggressively intervening in the market

• By allowing market forces to determine the rate

• By fixing the rate at a higher level

• By increasing interest rates

What is the PBOC's expectation regarding the Federal Reserve's policy?

• The Fed is nearing the end of its tightening cycle

• The Fed will start easing soon

• The Fed will continue tightening indefinitely

• The Fed's policy has no impact on RMB

Which currency is highlighted as having strong equity inflows and less sensitivity to external risks?

• Japanese yen

• Chinese yuan

• Taiwan dollar

• Korean won

What has driven the recent break in correlation between the Korean won and the RMB?

• Trade tensions

• Equity inflows and AI enthusiasm

• Political instability

• Interest rate changes