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People's Bank of China

Global Stocks Soar On Stimulus Hopes After Miserable Chinese, Japanese Data; Short Squeeze

Global Stocks Soar On Stimulus Hopes After Miserable Chinese, Japanese Data; Short Squeeze

Bad news is once again good news... for stocks that is. 

After a month and a half of markets unable to decide if they should buy or sell on ugly data, over the weekend, People’s Bank of China Governor Zhou Xiaochuan expressed faith in the economy, and said there is no basis for further Yuan devaluation, something the PBOC has said consistently over the past year, despite two sharp devaluation episodes.

China Injects Another $50 Billion Liquidity As Mysterious Panic Buyer Reappears In Offshore Yuan

China Injects Another $50 Billion Liquidity As Mysterious Panic Buyer Reappears In Offshore Yuan

The PBOC FX intervention team continue to be busy in offshore Yuan this week as for the 4th time in 3 days, a mysterious panic-buyer lifted CNH between 5 and 10 handles higher for no good reason other than to show George Soros (and Bill Ackman) who is boss (i.e. drive away the shorts). In keeping with the recent "stability" the Yuan fix was flat but another 340bn Yuan was injected - except China CDS pushes to Aug 2015 wides indicating severe stress and suggesting devaluation looms.

 

PBOC Injects Massive $60 Billion Liquidity - Most In 3 Years

PBOC Injects Massive $60 Billion Liquidity - Most In 3 Years

Offshore Yuan is sliding lower after its "US equity market saving" surge during the day session as PBOC fixes Yuan stable for the 10th day in a row. Despite the smoke and mirrors of stability however, they injected a colossal 400 billion Yuan into the financial system - the most in 3 years.

Offshore Yuan is sliding...

 

PBOC holds Yuan Fix stable for the 10th day with a very small weakening:

  • *CHINA SETS YUAN REFERENCE RATE AT 6.5585 AGAINST U.S. DOLLAR

 

 

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