Table of contents
RMB revaluation 3
What are the potential costs/benefits from China’s point of view? 4
How undervalued are RMB and Asian currencies? 6
An asset bubble in the making 7
What happened when the RMB revalued in July 2005? 9
Who are the likely winners? 11
Who are the likely losers? 16
Stay overweight of Non-Japan Asia 17
We do not think this will lead to a sell-off in US Treasuries 21
Appendix 1: RMB revaluation 23
Appendix 2: China consumption growth 24
Appendix 3: Stocks with high NJA exposure 25
Appendix 4: GDP and PCs per capita 28
Appendix 5: Companies at risk from Chinese competition 29
Appendix 6: GEM currencies since 2007 30