Yuan Shorting By Proxy

Bloomberg: How Hedge Funds Are Getting Around the PBOC's Market Meddling

Hedge funds with a bearish view on China’s currency are increasingly betting against yuan proxies instead, after the central bank stepped up efforts to stabilize the exchange rate.

Crescat Capital in Colorado is shorting U.S. exchange-traded funds that track Chinese and South Korean stocks, while Hong Kong-based Bright Stream Capital Management favors the Korean won and Taiwan’s dollar. The exchange rates tend to decline on negative China sentiment because the nation is their biggest export market.

Bloomberg: Taiwan Dollar Rises for Sixth Day on Inflows Amid Emerging Rally

Taiwan’s dollar strengthened for a sixth day, the longest run in almost a year, as the central bank appeared more tolerant of gains amid stock inflows and a rally in emerging-market assets.