Update:
- SHANGHAI COMPOSITE INDEX FALLS 20% BELOW DECEMBER HIGH
[7]
To 2-Year Lows...
[8]
Offshore Yuan is being dumped again...
[9]
And The Hong Kong Dollar is under sever pressure within its peg band...
[10]
As De-Pegging risk expectations ramp up...
[11]
As we detailked earlier,following last night's notable weakness in Chinese stocks (now down 15-25% year-to-date) and today's plunge in US markets, Offshore Yuan has begun to tumble lower once again ahead of today's Yuan fix. Having slapped short Yuan speculators with a dire liquidity withdrawal, it appears traders are seeing through the "over-invoicing" bullshit of last night's trade data and outflows appear to have restarted. Equities across AsiaPac are tumbling despite PBOC injecting a massive CNY160bn of liquidity (and modestly strengthening the Yuan fix), as safe-haven flows push 10Y China bonds to 2.70% - a record low.
Chinese bonds just hit a record low yield...
- *CHINA 10-YEAR BOND YIELD DROPS 3 BPS TO RECORD 2.70%
[12]
Offshore Yuan is selling off again...
[13]
And Chinese equities are a bloodbath in 2016...
[14]
And tonight's open is not helping...
- *MSCI ASIA PACIFIC INDEX EXTENDS LOSS TO 2.3%
- *FTSE CHINA A50 JANUARY FUTURES FALL 1.7% IN SINGAPORE
- *SHANGHAI COMPOSITE FALLS BELOW AUGUST CLOSING LOW
[15]
But China "flu" appears to be spreading as carry trade unwinds spread to JPY...
Japanese stocks are plunging - NKY down 700 points from its US session highs...
[16]
To its weakest since Oct 2014...
[17]
Get back to work Mr. Kuroda!!!
Charts: Bloomberg
