China’s yuan is likely to become one of the world’s strongest currencies, even as concerns mount over slowing growth in the world’s second largest economy, said Andy Seaman, chief investment officer and partner at British investment firm Stratton Street.
Seaman said he was bullish on the outlook because of China’s current account surplus and large net foreign asset positions, though shifts in the nation’s exports should be expected.
China’s current account surplus – which measures the net flow of goods, services and investments – was equivalent to 1.9 per cent of gross domestic product in 2016, down from 2.7 per cent in 2015.
However the absolute sum is expected to remain sizeable because of the government’s support for high-skilled manufacturing, services and increased domestic consumption is likely to increase productivity, Seaman said.
Source:http://www.scmp.com/business/money/money-news/article/2115695/chinas-yuan-track-further-gains-stratton-street-says