2015-01-30

Offshore Yuan Sinks Again

Offshore Yuan Drops to Weakest Since 2012 on PBOC Easing Signs
The yuan traded in Hong Kong fell to its weakest level since 2012 as the People’s Bank of China said it pumped funds into the money market, fueling speculation the authority is easing policy further amid an economic slowdown.

As I pointed out yesterday in Will China Devalue or Deflate?, if China eases, the yuan will devalue.

A falling offshore yuan can have a big impact on the Mainland market.
The Informational Power of the Offshore Yuan Exchange Rate

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