Is China's currency REALLY undervalued?

There's some new evidence that the mainland currency may not actually be undervalued, despite commonly held views to the contrary. In a recent HKIMR working paper (11/2007, available here), Cheung, Chinn and Fujii argue that using standard empirical methods, there is little statistical evidence that the RMB is undervalued.

For my earlier take on this topic, see here.