China’s Turbulent Markets Keep Still-Eager Investors Guessing
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A dancer for the Hong Kong Economic and Trade Office performed on the floor of the New York Stock Exchange last month. CreditSpencer Platt/Getty Images
As China’s once-staid currency suddenly dropped sharply last week, Wall Street began sniffing around for a way to profit.
A trader on Goldman Sachs’s Hong Kong trading desk sent a memo to hedge fund clients highlighting one opportunity: Taking advantage of a price difference between China’s onshore renminbi and its offshore version. The currency is not freely tradable, and it was trading in Hong Kong as much as 1.5 percent lower than in China.
That is “assuming you can move
money between Hong Kong and the mainland,” the trader wrote, referring to China’s capital controls…
China’s Turbulent Markets Keep Still-Eager Investors Guessing
