James Kynge

in the value of the renminbi over the next five years would be both feasible and beneficial to China.

So I don't know if we agree on his estimate there of over 50%, but in the minds of several economists and some of the data that you've just been quoting, the renminbi is severely undervalued.

We're talking 20, 30.

And so if...

This really does change now.

Even if there's a gradual appreciation that goes on for several years to come, so many things will change.

China's appetite for imports may well change because it means that imports will become cheaper to Chinese people.

Maybe investors all over the world will say, oh, Chinese assets are

are going to become more valuable relative to the US dollar as the renminbi climbs against the US dollar.

And so therefore, let's buy some of these Chinese stocks.

I mean, I remember I was in Japan in the 80s.

I remember that happening in such a massive way in the 80s after the yen began to appreciate post the Plaza Accord in 1985, I think it was.

And we saw huge

huge tidal waves of capital inflows into the Japanese market.

I'm not saying that's going to happen this time.

I don't think that history will repeat itself, but it could rhyme.

We could get a situation in which Chinese assets become more popular, more attractive to investors around the world.

So the last thing I'd mention, which is a slightly humorous thing, is the so-called Big Mac Index.

This is The Economist magazine's kind of back-of-the-envelope calculation on whether or not a currency is overvalued or undervalued.

And it basically compares the price of a Big Mac sold at McDonald's in the US, let's say, compared to, in this case, China.