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By Robert Cookson in Hong Kong and Peter Garnham in London
Published: June 22 2010 17:36 | Last updated: June 22 2010 17:36
Fears that speculative inflows of "hot money" could destabilise the Chinese economy have long preoccupied policymakers in Beijing. Now that the renminbi has been cut loose from its peg to the US dollar, these worries are back with a vengeance.
The problem for policymakers is that most investors believe that the renminbi is significantly undervalued against the dollar "“ some even estimate by almost as much as 50 per cent. So speculating on a revaluation is widely seen as a one-way bet.
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