RMB depreciation fears could hurt China’s attraction

Potential escalations in the trade tirade between the US and China has not come at a good time for would-be China investment bulls. Increasingly bellicose language and threats could further weaken the country’s currency and weaken the appeal of its assets with foreign investors who until recently had been eager to acquire them. For the past several months, global investors have been buying more Chinese bonds, as low interest rate conditions have continued to prevail across much of…