Excerpt from: World Markets
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| March 11, 2010 | | Spread bets and CFDs on Chinese markets | Spread betting and contracts for differences on world markets should consider that inflation in China is rising. Prices have shown a marked increase, and this is leading to concerns that China may need to clamp down. It is also leading to speculation that the yuan will be allowed to appreciate relative to the U.S. dollar.
There is also some interest in the fact that the Bank of China is looking to grow overseas. However, the institution wants to do this through different types of investments, rather than outright acquisitions. While some international banks, like Barclays and the Royal Bank of Canada, are rumoured to be looking for American acquisitions, the Chinese are wary of such a large foreign investment.
It will be interesting to see what happens in China, both in terms of inflation control measures and foreign investment, since China has become such a big player on the world economic stage.
| Topic Tags: CFDs, China, contracts for differences, inflation, spread bets, spread betting, U.S. dollar | |
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