PRC interest rate. did i read this correctly?

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  1. #1

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    Question PRC interest rate. did i read this correctly?

    World Interest Rates Table

    china is at 5.31% plus i think rmb might appreciate against the dollar more.

    did i read it correctly? if you put your money in hk banks, you're getting almost zero interest right now. seems like if you put your money in PRC, you're really getting the bang for the buck.

    is there a catch here? seems like too good to be true.

  2. #2

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    The catch is that you are only able to transfer $20,000 RMB per day in or out of another currency. And the Chinese Government could change the rules at any time, effectively locking your money in China. Moreover, the interest rates on that pages are the central bank interest rates. You may or may not be able to get such rates on savings accounts.


  3. #3

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    didn't see that kind of rate IN China.


  4. #4

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    Quote Originally Posted by PDLM:
    The catch is that you are only able to transfer $20,000 RMB per day in or out of another currency. And the Chinese Government could change the rules at any time, effectively locking your money in China. Moreover, the interest rates on that pages are the central bank interest rates. You may or may not be able to get such rates on savings accounts.
    china is kind of weird. usually, the central bank rates is the rates banks pays the central bank to meet overnight reserve ratio. so if the central bank rate in china is 5.31%. then major corporations in china has to pay higher rates than that to get loans from banks...otherwise, banks would just lose money on every loan.

    so if you look for high quality corporate bonds to invest in china, you should able to get returns higher than 5.31%.

    $20k rmb limit per day is not a problem for most people who knows people in china.