China Carnage Continues: Despite Huge Liquidty Injection, Stocks & Currency Are Tumbling
Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade 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...