Utilities, Precious Metals, Real Estate, Canada, France are among the worst

Source: ML

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MidLincoln Tales/Comics Rob Saunders the PM at imaginary RedSun AM in Lincoln Nebraska has been receiving quite a lot of inflows from his main land China clients. The clients preferred dollar exposure. They were medium to large size China business people, who were doing the business in the US. But they did not want exposure to yuan and they used every opportunity to send money out of China or keep the profits in the US and park their off shore snatch in US dollars. Which was not too patriotic of them as their action exacerbated pressure on China currency. Yet Rob and many other fund managers in the US welcomed this redistribution of global imbalances. hart In This Weekly: Quality if Yuan Deteriorates: 1. During the past year, the Chinese yuan (CNY) has shed a bit more than 7 percent of its value against the greenback. 2. While the monetary liabilitiesof the PBoC have remained rather constant since late 2014, their composition has changed. The assets, which are the counterparts to the monetary liabilities, have changed dramatically. The net foreign assets have fallen and been replaced by net domestic assets. In consequence, the quality of the CNY has deteriorated. In this light, the recent tightening of China�s capital controls on outbound foreign investment is nothing more than an attempt to preserve foreign exchange and reverse the deterioration in the CNY�s quality. (Cato Institute)