There is no limit to Wall Street’s ingenuity– especially when a brand new exciting opportunity presents itself to profit in the most dynamic of all the emerging markets, China.

Morgan Stanley, for example, has wasted no time in creating its own clever way to invest in China; a 5 year note with a stepped up interest rate that will be denominated in the Chinese currency– another example of Wall Street’s newest way to profit from the rise of China’s economy and the expectation that the value of its currency will rise in relation to the dollar. I say it’s like shooting ducks in a barrel.

The sale of Morgan Stanley Senior Fixed Rate Step-Up-Securities due in February, 2016 is also a clever way for the investment bank to raise capital for its own operations. The firm plans to list the notes for trading on the London Stock Exchange.

And it’s going to be very cheap capital for Morgan Stanley– a lot cheaper than the 6.25% Goldman Sachs is paying to borrow $1.5 billion for 30 years.

The Morgan Stanley notes will pay 0.50% the first year, and then the coupon will rise 25 basis points each year for 5 years until the yield is 1.50%. When they come due in February, 2016, investors will be paid in dollars. If, as Streettalk expects, the yuan rises at least 50% a year against the dollar, investors will get 50% more dollars than they invested in the note in 2011.

The notes, which do not trade yet, are proof of the growing connection between Wall Street and the financial markets in China. Look for other financial firms to take advantage of the yuan’s development as an international currency by creating their own investment vehicles for American investors.