500RMB Deng bill rumors resurface, cause hand wringing

From JLM Pacific Epoch comes rumors that China is planning to issue a new RMB 500 bank note in November - one which would feature the face of Deng Xiaoping. Currently, the most valuable note you can get in China is the 100, which can get kind of ridiculous considering how many deals are still done in cash. Still, the chances of this rumor proving true are pretty darn low. Not only has the People's Bank of China gone out of its way to deny plans for a 500, it's also not the first time we've seen news like this circulate. Still, we do find JLM's take on the psychological impact even speculation of a Deng has on the market interesting. In their words, the "big banknote... mirrors a big problem": the frailty of China's economic recovery considering its basis in loosey goosey monetary policy.