Mobius expects 'gentle' renminbi appreciation

Emerging markets specialist Mark Mobius says appreciation of the renminbi is likely to be "gentle and controlled" and does not significantly alter his view on Chinese shares.

Mobius says an impending renminbi appreciation should not have a dramatic impact on Chinese stock markets, not least because China holds over $800bn in US Treasuries. China last month said it will adopt a more flexible policy to its currency, raising expectations it would remove the peg to the US dollar. "A sharp movement in the renminbi's value in either direction could potentially hurt either party, foreign or Chinese. Domestically, I think the Chinese authorities realise that," Mobius says. The Franklin Templeton manager says Chinese equities should do well in the medium-term, r...