Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Baochuan’s Carter Says Yuan Band Move Will Boost Chinese Stocks

Don't Miss Out —
Follow us on:

April 14 (Bloomberg) -- Kevin Carter, co-founder and chief executive officer at Baochuan Capital Management LLC, speaks about China’s decision to widen the yuan’s trading band for the first time since 2007.

He spoke by telephone from Walnut Creek, California:

“China is continuing to take many steps toward opening and liberalizing its markets and economy. It’s very clear that China’s ultimate long-term goal is to have a reserve currency and the yuan needs to trade according to market-driven mechanisms to allow that to happen. It’s another step on a path that they planned out a long time ago.”

“The G-20 and IMF meetings are coming up and China was going to get pressure from other economies to let the currency appreciate. It might take a little of the pressure off to make this gesture. This is a choreographed move to damp some of the pressure they were going to get.”

“While it’s more of a gesture than a real move with impact, it’s a small piece of a bigger long-term goal to open up China’s markets and currency.”

Impact on stock markets:

“The market, for the most part, has been reacting better this year to news out of China than last year. This could certainly be another positive thing for Chinese stocks.

“The market response will be that this is China opening up long-term.”

To contact the reporter on this story: Emma O’Brien in New York at eobrien6@bloomberg.net

To contact the editor responsible for this story: Sylvia Wier at swier@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.