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 [6]
"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 [7] 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 [11]
Charts: Bloomberg



