This page has been archived and commenting is disabled.
Chinese Stocks Tumble To Worst 3-Week Slump In A Year As Yuan Plunges To Record Discount
On the heels of worse than expected Manufacturing PMIs (both indicating economic contraction) and the "taking away" of Minsheng Bank's CEO in a clear signal that the corruption probe is refocusing on the banking industry, Chinese stocks and currency are tumbling. Retail investors dreams are going up in smoke as the Shanghai Composite suffers its biggest 3-week loss in over a year and tumbles to a 3.8% loss year-to-date - not what the gambling 'investors' were expecting. But perhaps more worryingly for Chinese officials is the continued selling pressure on the Yuan - now at a record 1.94% discount to PBOC's fixing - very close to forcing intervention of decision time on a wider peg-band or even more free-floating currency.
Chinese stocks down over 2% at the open - lost all 2015 gains...
With the biggest 3-week loss since early 2014...
As the Yuan keeps getting sold...
In spite of the government's warning to NOT BUY DOLLARS.
Charts: Bloomberg
»
- 7370 reads
- Printer-friendly version
- Send to friend
- advertisements -
"...very close to forcing intervention of decision time on a wider peg-band or even more free-floating currency."
Mission Accomplished
I must be reading that chart wrong.....The Shanghai composite went from 2000 to 3400 in less than a year?
"Retail INVESTORS dreams are going up in smoke..."
"Investors." LOL
China will adjust the peg bands. It isn't ready yet to free float and/or allow full convetability of CNY, especially in view of the attack on RUB. For now, with Japan playing currency games against China and Korea, it suits China just finr to allow the CNY to weaken and adjust the trading bands.
@Pink, lol. Yes, a 5% correction after a 75% gain in less than a year is clearly a disaster. Must be time for the Fed to step in?
THE PATRIOTS WINNNN!
THE PATRIOTS WINNNNNNNNNNNNN!!!!!!
"...even more free-floating currency..."
Unpegged from king dollar, no?
No.
Do I still get my Ukrainian mail order gal ?
You sound surprised
8675309.....
sounds like a perfect condition for new all time high tomorrow.
Copper is up, up, up on this. What a fucking farce.
All currencies that opened gapped up or down have filled their gaps except...drumrolll please............EUR and USD.
wow that is one fucktarded, um, whatever it is
Yeah, but the Superbowl.
It is ALL surreal now. More circuses.
I like that idea of the Ukrainian babes & the Chinese dudes....interesting genetic combination.
Bitcoin last price: $230
No problem, China's turn: "China Stimulus Pressure Builds With Factories Weakening: Economy"
http://www.bloomberg.com/news/articles/2015-02-02/china-stimulus-pressur...
We'll be + in the mornin when trading starts.
You can't make this stuff up! Chinese markets swoon because Banker corruption is being exposed/prosecuted. But why should that make a difference; US markets go up almost everyday celebrating the same.
Yeah. You know what a tumbling Yuan implies? It means China is liquidating its enormous $ holdings to support the Yuan in the process, that's what it means. Deflation my ass.
C
China will not unpeg after they have seen how Russia is struggling. Also, credit issues in China remain rampant and it is not getting better yet as skeletons falling out of closet as growth continues to slow. This is a good thing for China to clean house but it means a lot more pain for the rest of the world which is struggling to find a new locomotive for growth!