It's not overvalued nor undervalued if it's pegged. It just doesn't really exist. The Chinese essentially are using US dollars, the yuan is just a proxy currency for USD right now. But to say that it's completely worthless is misleading too. Once they cut the peg, it wouldn't be worthless anymore. Would you say the Euro is worthless now? no.
Facts and intelligent analysis takes half the fun out of these discussions... ( On a more serious note: thanks for the insights!)
If China cut the peg tomorrow, their currency would be worthless. With all of the restrictions on foreign ownership listed in this article, who in their right mind would ever accept Chinese yuan in payment for their products?