PragCap publishes an interesting research note published by Credit Suisse earlier this year, looking at potential yuan reval winners and losers.
This part is interesting, in terms of looking for secondary winners:
The last time the RMB revalued (in July 2005), Japan outperformed 25% in the subsequent six months (and we think it could outperform again with 55% of exports going to NJA: we like Nitto Denko, TDK, Asahi Glass) and Non-Japan Asia outperformed marginally. We believe that a small currency appreciation could lead to unsterilised capital inflows and thus an asset bubble (in China according to Dong Tao, only about 40% of capital inflows are sterilised). Hong Kong retail property owners could benefit (as HIBOR is driven down and Chinese consumers go to Hong Kong to shop): Great Eagle trades on a 39% discount to NAV.
Don't miss: 21 winners and losers from the yuan revaluation >
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