No. of Recommendations: 9
I think, 48 hours in, it is pretty clear that there will be a broad realignment of the world towards China in the near term of the next four years.
The US leadership fundamentally doesn't work in terms of alliances, and is tactical and transactional. In that sense, they have misjudged their leverage and there is a more dominant and competently led superpower as an alternative ally that has been eating our lunch in Africa, southeast Asia, and the Middle East for some time now while building up the requisite military capacity to do more.
I particular am looking for ideas to arbitrage USD and RMB.
No. of Recommendations: 4
For a pure play, you can open an interest-paying multi-currency bank account in HSBC Hong Kong in RMB (making sure to file annual reports to US government if a US citizen). Otherwise, purchasing Chinese shares on the Hong Kong exchange through Interactive Brokers is another strategy, but is subject to both business risk as well as potential US restrictions on ownership in the future (thinking of the worthless shares of Lukoil I bought before the Ukraine war).
Jeff
