After Tumbling At Open, Chinese Stocks Erase All Losses

It's a miracle...

SHANGHAI COMPOSITE INDEX SET TO OPEN DOWN 3% ... 20 Minutes later... SHANGHAI COMPOSITE INDEX ERASES LOSS, RISING 0.3%

— zerohedge (@zerohedge) January 5, 2016

"Someone" stepped in and bid the entire Chinese market higher off its huge opening gap down...

Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.

First: PBOC devalues the Yuan fix by the most in 2 months...

Offshore Yuan continues to collapse and remains over 1000 pips cheap to onshore Yuan...

Despite the biggest liquidity injection in 4 months

The People’s Bank of China will inject 130b yuan into the banking system using 7-day reverse repurchase agreements today, according to two traders at primary dealers required to bid at the auctions.

Amount injected in operation today is most since Sept. 8

and all of this has left Chinese stocks plunging....

China better start arresting malicious sellers stat

— zerohedge (@zerohedge) January 5, 2016

Charts: Bloomberg

Comments

[Jorgen]

'It's a Miracle'

[OldPhart]

Jesus, the shit we had to put up with in 'culture' back in the '80s still disgusts the shit out of me.

[homebody]

World wide currency wars just beginning - the numbers in the markets are just fluff.  Markets (cough) just bait for the stupid.

[conraddobler]

THEY CAN'T MAKE THE REAL ECONOMY GO.

They can manipulate a market but in so doing they only INCREASE the destruction.

What goes on while all this fuckery is being done is that capital is MISALLOCATED and the more manipulation you do the more damage you do.

So the damage is near total at this point they are going to open a financial black hole.

However that serves some purposes and a good crisis will never go to waste.

It's like they just don't care or maybe they do and they are that stupid and corrupt, who knows, who cares the bottom line is that at some point shit is all going to go boom and all along the way people will be too early calling it because this is the kind of disaster that only happens when the rug finally is pulled and no more heroic measures are either tried or they stop working.

[Janet Shalom Be...]

That's how Asian markets work.  Destroy the economy, have the public dump stocks as you print trillions of new yuan/yen, then use the new wall paper to buy and hold stocks, giving the false impression that everything is ok.   

Really sound monetary policy.  The great experiment, where they think that the public will fully understand if things go horribly wrong.  

wait, that is exactly what the Fed is doing.    

Wouldn't want to be a central banker when these experiments horribly fail.     

[David Wooten]

Time for another Update! as it's plunging again @11:30MST

Down over 3% after rebounding to positive from open.

[FranSix]

This is not the stock market crash you were looking for /JEDI mind trick

[Goldbugger]

We have the PPT to buy, they have the One Hung Low.