Gross warns China could begin unwinding within a year

Need to depreciate currency

Janus Capital's Bill Gross believes the Chinese renminbi should "give up the ghost" and warned China is at risk of starting "some type of unwind" in the next 12 months.

In a CNBC interview, Gross (pictured) was asked for his view on the future of the Chinese currency.  He said: "How long can they keep pretending? I think it has appreciated so much relative to other Asian currencies that at some point they have got to give up the ghost and depreciate their currency. "At this point it is overvalued and underproduced in terms of its real economy. They are getting out-competed, if only on a currency basis." China officials have made several moves to support the renminbi after reducing the currency's daily fix to the US dollar in a shock move last Augu...