China Solution to Dollar Short: Bigger Dollar Short

Bloomberg: China State Firms Help Offset Outflows With Overseas Debt
After stepping into the currency and equity markets repeatedly over the past year to stem declines, government-linked entities are now spurring capital inflows by raising money offshore and bringing it home. Sales of dollar bonds by some of China’s biggest state-run firms rose to a record $18.7 billion in the April-June period, about 80 percent higher than the average of the previous four quarters.

...Chinese authorities have a long history of encouraging state-owned enterprises to act in policy makers’ interests rather than their own.

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