Exports shrinking? Not a problem--export paper!

http://www.reuters.com/article/2012/05/1....

Partial quote:

Quote:

"Currently, conditions are extremely favourable for promoting yuan convertibility on the capital account", Guo Shuqing, head of the China Securities Regulatory Commission (CSRC), told an audience of financial regulators and industry executives.

It may be worth noting in this context that that the PBoC didn't not garner a positive reaction (thus far, anyway) from the Shanghai index after its lowering of reserve requirements over the weekend.

(I'm long FXP.)

seeking alpha newsfeed wrote..

Beijing's talk about "internationalization" of the yuan may be a bluff, contends Izabella Kaminska, designed to maintain the illusion of China as a good investment destination, not an economy on the brink of collapse. Markets are calling, accelerating capital outflow from the country and pricing in continued depreciation of the yuan over the next year.

I am short Yuan.