7 Ways to Cash In on the Soon-to-Soar Yuan

The market's had it with the dollar's dragging the value of China's yuan. Since the Chinese currency is pegged to the value of the dollar -- despite the more robust economy half a world away -- many argue that the yuan should be allowed to float higher against our greenback.

This isn't a universally welcome notion. China is resisting the move for many legitimate reasons:

• It owns a ton of U.S. debt, and a higher yuan would devalue the dollar-denominated paper.
• A higher yuan would make its exports more expensive overseas.
• The flip side of that equation is that it would also make imports cheaper in the world's most populous nation. It's a mixed blessing that would stretch China's spending power while sacrificing local industries.

However, it's inevitable that the yuan will gain ground against the dollar eventually, and stateside investors can cash in on the move.

The key to profiting from the move is buying into Chinese companies that won't feel the sting of a slowdown in exports. In other words, stick to companies that market their wares and services within China -- especially those in the leisure and entertainment industries. These are the companies that will benefit from broader discretionary income. Stateside investors also benefit from the appreciation of the revenue and share prices relative to their dollar-denominated investments along the way.

Here are seven stocks that I think fit the bill.

There will naturally be many more winners when the yuan begins to tick higher. If you have a favorite play, share it with your fellow Fools in the comment box below.