This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Winners on Stronger Chinese Currency

NEW YORK (TheStreet) -- An overlooked factor in China's economy is the rising strength of its currency. The markets have been focusing on the contraction in manufacturing activity for China for January. But with the Yuan increasing, China will benefit in a myriad of ways from having a more valuable currency. Investors can capitalize on publicly traded companies that gain from business with China such as Rio Tinto (RIO), Westpac Banking Corporation (WBK) and Cummins (CMI - Get Report). If the Yuan were weak, it would not be increasing in its role as a reserve currency in international trade. It has surpassed the Euro as the second most widely used settlement unit, behind only the U.S. dollar. China has not been shy about stating its objective of having the yuan replace the dollar as the global reserve currency unit.

Indeed, China is now the world's biggest trading partner with total imports and exports exceeding $4 trillion in 2013, according to the General Administration on Customs.

A stronger yuan helps in that role. When a currency rises in value, items priced in other units become that much cheaper. A yuan that is worth more reduces the price of imports for Chinese consumers and companies.

That comports very well with Beijing's move to strengthen its consumer economy, as detailed in a previous article on TheStreet.

It is also positive for the future of Rio Tinto.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
CMI $139.87 -0.86%
RIO $45.88 0.20%
WBK $27.85 -0.14%
AAPL $126.56 -1.70%
FB $77.66 -1.50%

Markets

DOW 17,967.77 -102.63 -0.57%
S&P 500 2,094.20 -20.29 -0.96%
NASDAQ 4,943.0980 -73.8310 -1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs