Here We Go Again: Chinese Stocks Plunge, Give Up Early Gains Despite Yuan Fix Unchanged

Tyler Durden's picture




 

Update: *SHANGHAI COMPOSITE INDEX FALLS 2.04%(AFTER BEING UP 3.2%)

 

And CSI Futures are tumbling...

 

Not a pretty week...

 

Shifting notavkly from the opening color that we detailed earlier..

With all eyes on Chinese FX and equity markets, following the worst start to a year for US (and Chinese) stocks in history, PBOC decided (after 7 straight days of devaluation and 7% devaluation since August) to halt the run and increase Yuan fix by a paltry 0.01% to 6.5636 (notably below yesterday's 6.5939 CNY close). Offshore Yuan is strengthening and US equity markets are jumping. Chinese equity markets (now theoretically unhampered by their circuit-breaker panic switch) are far less impressed.

 

PBOC fixes the Yuan a tiny bit stronger...

 

Offshore Yuan roller-coastered through the US session as Reuters headlines sparked selling pressure after some Treasury-selling/Yuan-tervention...but is rallying on the not bad news...

 

Onshore-Offshore spread has tumbled to 900pips from over 1500...

 

Asian stocks are set for their worst week since 2011 with some notable names in big trouble:

  • *NOBLE GROUP TUMBLES 10%, EXTENDING LOSS, AFTER S&P DOWNGRADE

While China ETFs trading in US markets signal notable weakness to come for an-"limited" Chinese stock market...

 

Chinese stocks look set for a positive open:

  • *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 2.2% TO 3,194.63
  • *CHINA'S CSI 300 INDEX SET TO OPEN UP 2.4% TO 3,371.87
  • *FTSE CHINA A50 INDEX RISES 2.17%

And Dow Futures love it... for now...

 

Some context:

 

So no news is good news for now...

Charts: Bloomberg

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Thu, 01/07/2016 - 20:25 | 7014651 Money Counterfeiter
Money Counterfeiter's picture

MSM might catch on in...6 months.

Thu, 01/07/2016 - 20:31 | 7014682 Fester
Fester's picture

I could really go for a Starbucks, you know

Thu, 01/07/2016 - 20:36 | 7014716 The Fonz...befo...
The Fonz...before shark jump's picture

Yeah, well, I really don't think we have time for a hand job, Joe.

Idiocracy

Sorry couldn't help myself....

Thu, 01/07/2016 - 20:44 | 7014753 RadioFlyer
RadioFlyer's picture

Time to stop at Buttfuckers for a burger?

Thu, 01/07/2016 - 20:52 | 7014802 Squid Viscous
Squid Viscous's picture

i think you meant Obozo's favorite place, Fudgeruckers?

Thu, 01/07/2016 - 21:40 | 7015035 OrangeJews
OrangeJews's picture

I heard Michael Robinson was the owner of Buttfuckers.

Thu, 01/07/2016 - 21:50 | 7015080 dfwpike
dfwpike's picture
"Here We Go Again: Chinese Stocks Plunge, Give Up Early Gains Despite Yuan Fix Unchanged"

 

Hong Kong is up over 1% right now so I don't understand the headline.  Sorry for my ignorance.  I'm new to all this and trying to figure things out.

Thu, 01/07/2016 - 22:09 | 7015152 BadLibertarian
BadLibertarian's picture

Hang Seng is the index to look at. And it's back up now - pretty clearly some plunge protection action going on.

Thu, 01/07/2016 - 20:55 | 7014817 The Fonz...befo...
The Fonz...before shark jump's picture

Lol

Sponsored by Carls jr

Thu, 01/07/2016 - 21:08 | 7014885 EINSILVERGUY
EINSILVERGUY's picture

Fuck you I'm Eating

Thu, 01/07/2016 - 20:53 | 7014811 Fester
Fester's picture

I'll never grow up.

Hey, a couple of us guys were wonderin', uh if we'd go family-style on on her

Thu, 01/07/2016 - 20:45 | 7014756 stumbLebum
stumbLebum's picture

It's taken you 5 years to figure out gold's in a bear market, dufus.   :-)

Thu, 01/07/2016 - 20:58 | 7014834 johngaltfla
johngaltfla's picture

I haven't seen things this fucked up since the last time I tripped acid.

Whoops. TMI.

I mean since I was drunk in 1980, seriously.

Fri, 01/08/2016 - 04:03 | 7015845 zhandax
zhandax's picture

There were a lot of mushrooms mislabeled as 'shitakke' back then.

Fri, 01/08/2016 - 07:05 | 7016021 skinwalker
skinwalker's picture

I once ate a bag of shrooms and dropped some acid, then went to an infected mushroom concert. This shit is weirder. 

Thu, 01/07/2016 - 22:49 | 7015312 quartshort
quartshort's picture

AKA buying opportunity

Thu, 01/07/2016 - 21:35 | 7015019 matermaker
matermaker's picture

they can dump every damn US treasury they own to prop that market up.  Markets are all that is left.

Thu, 01/07/2016 - 20:27 | 7014660 myztix
myztix's picture

for the time being.

US going to chase? probably not.

Thu, 01/07/2016 - 20:47 | 7014768 stumbLebum
stumbLebum's picture

All the angst and doomsday predictions Zero Hedge had for the China market open was for naught.  China stocks on the way up...gold on the way down.  

Exactly how life should be!

Thu, 01/07/2016 - 20:56 | 7014824 undermind
undermind's picture

Its not over yet Grasshopper.

Thu, 01/07/2016 - 21:21 | 7014950 nmewn
nmewn's picture

Lebum, is that French? ;-)

Thu, 01/07/2016 - 21:03 | 7014862 Mentaliusanything
Mentaliusanything's picture

So much sticky rice being flung at the bourse to keep it green as chinese tea. This is worse than a bucket shop ramp. Lets see what happens at the 2 hour break.

It going to be a long day... queue the theme from Rocky.

Thu, 01/07/2016 - 20:28 | 7014662 nmewn
nmewn's picture

"Seee...communists really are free market capitalists! Look Mom, no hands!" - Vice Public Security Minister Meng Qingfeng

Thu, 01/07/2016 - 20:32 | 7014687 stant
stant's picture

Guess they got all the major traders in the gulag so they go turn the machines back on

Thu, 01/07/2016 - 21:17 | 7014930 Oldwood
Oldwood's picture

So, am I supposed to buy the fucking dip NOW?

This is all so confusing

Thu, 01/07/2016 - 21:25 | 7014970 nmewn
nmewn's picture

Just realize, it's their casino ;-)

Thu, 01/07/2016 - 20:28 | 7014663 thismarketisrigged
thismarketisrigged's picture

FUCK THIS RIGGED U.S ''MARKET''.

 

THE PPT HAS FUCKING BACKSTOPPED EVERY FUCKING MASSIVE DOWNDAY THIS WEEK 

MONDAY DOW WAS DOWN 430 IN LAST HOUR, CLOSES AT 276.

TUESDAY WE WERE DOWN OVER 100 PLUS, CLOSES SLIGHTY GREEN.

WEDNESDAY WE WERE DOWN 340 IN LAST HOUR, CLOSE AT 255

TODAY, WE WERE DOWN 435 AND ACCELERATING TOWARDS DOWN 500 POSSIBLY, AND THE FUCKING PPT BRINGS IT BACK TO 310 BEFORE A LAST 2 MINUTES OF SELLING CLOSE IT AT 390.

 

TOMORROW THEY WILL TRY TO GET HALF THE LOSSES BACK, AND WILL CONTINUE TO DO SO UNTIL ALL LOSSES FROM PAST 4 DAYS R WIPED OUT.

 

THESE BASTARDS NEED TO BE AUDITED NOW!!!

Thu, 01/07/2016 - 20:30 | 7014675 Kaiser Sousa
Kaiser Sousa's picture

thanks for taking the baton fotthe last leg of the day rigged....

would not be surpriesed if the Dow rallys 1,000 oints tomorrow....

Thu, 01/07/2016 - 20:34 | 7014699 thismarketisrigged
thismarketisrigged's picture

nothing would surprise me with these fuckers, but realistically, tomorrow will prob be up 400 pts on the dow, and worthless companies like faceshit, amzn, aapl will prob each rally 4-5 percent respectivley, and we will here how everything is fucking awesome again.

Thu, 01/07/2016 - 20:48 | 7014775 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

+400

Thu, 01/07/2016 - 21:00 | 7014849 yellensNIRPles
yellensNIRPles's picture

Hahaha, I see what you did there. Love it.

Thu, 01/07/2016 - 23:00 | 7015353 Automatic Choke
Automatic Choke's picture

If you know what is going to happen tomorrow, quit talking and place your bets.  Let me know when you quit your day job.

Thu, 01/07/2016 - 20:57 | 7014831 tmosley
tmosley's picture

Dunno. The liquidation pressure is pretty damn high at this point.

Thu, 01/07/2016 - 21:17 | 7014928 RiverRoad
RiverRoad's picture

This crash is so controlled it's scary.

 

  Yogi Bera?

Thu, 01/07/2016 - 21:46 | 7015058 Saddam Miser
Saddam Miser's picture

I hope so.  I need to get short again.

Thu, 01/07/2016 - 21:07 | 7014882 Brooks_Orpington
Brooks_Orpington's picture

I hate the oints.

Thu, 01/07/2016 - 21:59 | 7015123 maxamus
maxamus's picture

Why not, it is down 1200 points in 6 days...

Thu, 01/07/2016 - 20:48 | 7014772 stumbLebum
stumbLebum's picture

Can you bold and underscore your posts too?   :-)

Thu, 01/07/2016 - 20:28 | 7014667 BlueStreet
BlueStreet's picture

If it were only all about China the bulls would have something to celebrate. 

Thu, 01/07/2016 - 20:28 | 7014668 Kaiser Sousa
Kaiser Sousa's picture

its all bullshit...

keep stackin Physical Gold and Silver while u can.....

http://www.livecharts.co.uk/MarketCharts/gold.php

http://www.livecharts.co.uk/MarketCharts/silver.php

Thu, 01/07/2016 - 20:49 | 7014781 stumbLebum
stumbLebum's picture

Keep furiously stacking, you nincompoop!

 

Thu, 01/07/2016 - 20:54 | 7014816 Squid Viscous
Squid Viscous's picture

how much you down now, stumbles? been buying the dips?

Thu, 01/07/2016 - 23:50 | 7015496 quartshort
quartshort's picture

Keep posting you fuck nut! And yes, I am collecting. Still trying to get the little bastards to float. No such luck.

 

Thu, 01/07/2016 - 20:58 | 7014830 Brooks_Orpington
Brooks_Orpington's picture

C'mon.  Everything isn't bullshit.  It's the reality we live in.  It is entirely real.  We can either learn how to live in the new(er) reality or wither away while bitching how it's not how we wish it were.

Stack if it works for you.  I have no good argument against that!

But what you're witnessing isn't bullshit.  It's a new paradigm and we'd all to well to understand and exploit it.

Fri, 01/08/2016 - 00:06 | 7015540 quartshort
quartshort's picture

When the going gets weird, the weird turn pro.

HST

Thu, 01/07/2016 - 20:31 | 7014684 CHoward
CHoward's picture

The U.S. markets are propped up by the PPT for one reason and one reason only.  The majority of Americans are ignorant and actually believe that if the markets are up, then everything is going well with the overall economy.  Americans have tied the markets directly into their perception of overall wellness in the country. 

Thu, 01/07/2016 - 20:36 | 7014718 herkomilchen
herkomilchen's picture

And they have all their retirement plowed into stocks because the traditional savings/bond route has been obliterated by the Fed.

Thu, 01/07/2016 - 21:26 | 7014945 RiverRoad
RiverRoad's picture

Fed's been scarin' 'em/keepin' 'em out of bonds for 7 years now:  all those rate hikes that never happened.

Thu, 01/07/2016 - 21:29 | 7014998 Osmium
Osmium's picture

A guy I work with was bitcing that his 401k (all stocks) was down $5500 in 2016.  You bet yer ass they will ramp the market.  Can't have the masses restless.

Thu, 01/07/2016 - 21:50 | 7015081 Saddam Miser
Saddam Miser's picture

They bitch all day and then go home and watch CNBS... I have no sympathy for them.  You try to show them the light, and they throw it in your face.  Then you just have to shake your head because you know what's coming.  On a positive note, I was able to convince my boss to cash out the 401k.

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