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Here We Go Again: Chinese Stocks Plunge, Give Up Early Gains Despite Yuan Fix Unchanged

Update: *SHANGHAI COMPOSITE INDEX FALLS 2.04%(AFTER BEING UP 3.2%)

 

And CSI Futures are tumbling...

 

Not a pretty week...

 

Shifting notavkly from the opening color that we detailed earlier..

With all eyes on Chinese FX and equity markets, following the worst start to a year for US (and Chinese) stocks in history, PBOC decided (after 7 straight days of devaluation and 7% devaluation since August) to halt the run and increase Yuan fix by a paltry 0.01% to 6.5636 (notably below yesterday's 6.5939 CNY close). Offshore Yuan is strengthening and US equity markets are jumping. Chinese equity markets (now theoretically unhampered by their circuit-breaker panic switch) are far less impressed.

 

PBOC fixes the Yuan a tiny bit stronger...

 

Offshore Yuan roller-coastered through the US session as Reuters headlines sparked selling pressure after some Treasury-selling/Yuan-tervention...but is rallying on the not bad news...

 

Onshore-Offshore spread has tumbled to 900pips from over 1500...

 

Asian stocks are set for their worst week since 2011 with some notable names in big trouble:

  • *NOBLE GROUP TUMBLES 10%, EXTENDING LOSS, AFTER S&P DOWNGRADE

While China ETFs trading in US markets signal notable weakness to come for an-"limited" Chinese stock market...

 

Chinese stocks look set for a positive open:

  • *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 2.2% TO 3,194.63
  • *CHINA'S CSI 300 INDEX SET TO OPEN UP 2.4% TO 3,371.87
  • *FTSE CHINA A50 INDEX RISES 2.17%

And Dow Futures love it... for now...

 

Some context:

 

So no news is good news for now...

Charts: Bloomberg