Yuan Is Luring Chinese Investment

Weaker dollar and stronger yuan made foreign investment in China surged, adding more overheated economic pressure. From BBC News:

Foreign investment in China grew 38.3% in February from a year earlier thanks to a stronger yuan and large projects, the Commerce Ministry has said. February’s $6.9bn (£3.4bn) figure was well behind January, when it more than doubled to $11.2bn. In January and February, investment grew by 75.2%.

The yuan has been allowed to appreciate 3% against the US dollar since January, which has attracted funds to China. Also, firms have moved to China to cut costs and tap into growing demand.