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China Strengthens Yuan By Most In 2 Months Following Another Massive Liquidity Injection
The PBOC set the Yuan fix 0.08% stronger - the biggest 'strengthening in 2 months, which is interesting because following The IMF's confirmation of a delay to Yuan inclusion in the SDR basket to Oct 2016 (pending a year-end decision and asking for more flexibility), Offshore Yuan forwards notably devalued (shifting 350pips higher to 6.65, the highest/weakest Yuan in a week) pricing a 20 handle (or 3%) devaluation by August 2016. Overnight saw another CNY110bn liquidity injection rescue from The PPT in the afternoon session (saving SHCOMP from a close below the 200DMA) and tonight we see promise to recap Ag Bank along with another CNY 120bn reverse repo injection. Shanghai margin debt declined for a 2nd day in a row and Chinese stocks look set to open weaker.
Offshore Yuan forwards point to further devaluation to come...
But The PBOC strengthened The FIx..
- *PBOC YUAN FIXING RISES 0.08%, THE MOST IN MORE THAN TWO MONTHS
- *CHINA SETS YUAN REFERENCE RATE AT 6.3915 AGAINST U.S. DOLLAR
More focused liquidity injections today...
- *PBOC TO REPLENISH CAPITAL OF AG DEVELOPMENT BANK: CHINA NEWS
But overnight saw another large liquidity injection...
The People's Bank of China intervened in the interbank market for a second time this week on Wednesday, pumping in 110 billion yuan through open market operations to steady interbank rates that have been shooting up as investors pull out of the yuan.
The PBOC confirmed after the market close that it injected 110 billion yuan to 14 financial institutions for a period of 6 months at a rate of 3.35 per cent.
This followed an injection on Tuesday when it added 120 billion yuan in repurchase agreements to the market.
The back-to-back cash injections came a week after the central bank allowed the yuan to devalue by more than 3 per cent over a three-day period, sparking concerns over capital outflow.
Last night's injection save stocks from a close below the 200DMA...
And today looks set to open weaker
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1% TO 3,848.40
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1% TO 3,754.57
Despite another massive liquidity injection:
- *PBOC TO INJECT 120B YUAN WITH 7-DAY REVERSE REPOS: TRADER
3,650 is today's level to worry about today in the Shanghai Composite
Commodity firms getting hammered:
- *GLENCORE SHARES FALL 5.8% TO HK$19.60 IN HONG KONG
- *NOBLE GROUP SHARES FALL 1.2% AT OPEN IN SINGAPORE
As Margin debt declined for 2nd day in a row...
Outstanding balance of Shanghai margin lending fell by 0.5%, or 4.5b yuan, from previous day to 875.4b yuan on Wed., according to exchange data.
Well it seems The PBOC has a different problem than wanting to devalue to save its 'exports'... the massive liquidity injection suggest the country has a dollar 'run' after all.
Charts: Bloomberg
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China is paddling up shit creek with a broken oar.
and PM's are falling in to the boat
Galloping up diarrhea drive without a saddle.
And the boat has a hole in it.
with dead bloated pigs floating by. oh my, how i want to vacation in china. kabooooom.
china is unwinding faster than the commando ppt can patch billions to the Next Problems.
capitol flight, get the fuck out>smart money be gone, but really the dolla, ha - what a fcuking joke this whole ponzi fiat shit show has become.
plez bring back the daz of sound money and savings with 4-5 percent returns in sound institutions.
dream over...
Oh, you mean openly devaluing our own citizens labor overnight isn't the way to go about this? We'll make it more expensive then!
No Wang, don't touch that.
'We'll make it more expensive then'
that won't either ;)
Howee kowl!
To me the key words here are: "as investors pull out of the yuan".
What's more important in the grand scheme - export competitiveness or preventing a yuan sell-off.
Last week's oxycontin didn't do it...back to the crack.
...guess the "rods of god did the trick....
What's next....? Mauled horses dropping from the sky?
sarc/
The Syndicate made China an offer it couldn't refuse. And apparently the Syndicate controls the spaced based kinetic weapons.
Tianjin explosion carried out by Pentagon space weapon in retaliation for Yuan currency devaluation... Learn more: http://www.naturalnews.com/050816_Tianjin_explosion_space-based_weapons_military_retaliation.html#ixzz3j6UYp0zmPboc acts like they're making stew.....more Worcestershire more Worcestershire.....ah fukk too much. Pour more water in.....
Going down baby. "A little chop" my ass. Even Hicks is awake.
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Wait...weren't they devaluaing the Yuan?
I'm so confused...Bo-Bo Platter or Rat on a Stick?
I so now confused by you people...