Hot on the heels of The World Bank demanding The Fed not hike rates [6], China issued a statement "calling on US to jointly ensure global economic stability," tonight following a farcical intervention last night on record low volumes and a small devaluation of the Yuan. Foreign Minister Wang added "China and U.S. should also properly handle disagreements and safeguard current international order," just as another minister spewed forth "China’s economic outlook is very bright," - well apart from the record debt, collapsing asset values, and masssive over-capacity, you mean. Further measures detailing the new capital restrictions for forward FX transactions were announced (which will likely do for CNH what regulators did to Chinese index futures). Chinese stoicks are extending their gains in the pre-open on vapid volume as China leaves Yuan practically unchanged.
As a reminder, here is last night's (and Monday's) epic farce of a "market"... after dropping 100s of billion of Yuan to "stabilize" the market already, why not do some more...
[7]
On the lowest volume EVER!!!
[8]
And then have the balls to issue a ststement, [9] demanding this...
- *CHINA CALLS ON U.S. TO JOINTLY ENSURE GLOBAL ECONOMIC STABILITY
China and the U.S. should jointly ensure global financial and economic stability, Chinese Foreign Minister Wang Yi said when meeting with a former U.S. National Security Council official.
China and U.S. should also properly handle disagreements and safeguard current international order, as China President Xi Jinping is scheduled to visit the U.S. later this month, Wang said Sept. 7
[10]
But the propaganda did not stop there...
Liu He, director at the Office of China’s Central Leading Group on Financial and Economic Affairs, said that China’s economic outlook is “very bright” and the country will overcome current difficulties, Zhejiang Daily reports, citing Liu who commented during a trip to Zhejiang province.
Middle class is on the rise and domestic demand is “huge”
China needs to stabilize market expectation while working on reforms
Margin Debt dropped - after rising yesterday for the first time in over 2 weeks.
But stocks are extending gains in the pre-market futures trading...
- *CHINA'S CSI 300 STOCK-INDEX FUTURES RISE 2.8% TO 3,364
[11]
As PBOC leaves Yuan practically unchanged...
- *CHINA SETS YUAN REFERENCE RATE AT 6.3632 AGAINST U.S. DOLLAR
[12]
Charts: Bloomberg
