Fisher: Why U.S. Rate Hikes Won’t Whack the Yuan — or Chinese Stocks

Will U.S. interest rate hikes sink the yuan, lure foreign capital out of China and slow already-decelerating growth to a crawl — deepening Chinese stocks’ swoon? With the U.S. Federal Reserve talking up tighter policy, that fear is reemerging. But don’t worry. Fed hikes don’t guarantee the yuan will tumble. Even if the yuan does fall, history shows that alone won’t suck capital out of Chinese markets and doom stocks. Let me explain.