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 [5], 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...
[6]
As the Yuan keeps getting sold...
[7]
In spite of the government's warning to NOT BUY DOLLARS. [8]
Charts: Bloomberg
