Gold Jumps As China Devalues Yuan By Most In 2 Months, "Boosts Reforms" Of Corporate Bond Bubble
Gold jumped on the Yuan devaluation...
AsiaPac stocks are lower again...
- *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.5% TO 3,400
- *MSCI ASIA PACIFIC INDEX DROPS 1.4%, EXTENDING DECLINE
Reform it!
- *CHINA TO BOOST CORPORATE BOND MARKET REFORM: 21ST HERALD
* * *"Global investors are looking for signs of a collapse in China, which itself could increase the chances of a crash... This game can’t go on forever."
The Yuan has been 'fixed' stronger for 8 straight days... but tonight PBOC devalues Yuan by 177pips - the most in 2 months
- *CHINA SETS YUAN REFERENCE RATE AT 6.3408 AGAINST U.S. DOLLAR
- *CHINA WEAKENS YUAN FIXING MOST SINCE AUG. 13
And PBOC reseeacrhers are pushing for rapid internationalization of Yuan (and inclusion in the SDR basket)... beginning their paper with the rather USD reserve Currency Status challenging statement:
China must speed up yuan internationalization to develop the finance industry, PBOC research bureau head Lu Lei writes in People’s Daily.World History tells us that economic power is necessarily financial power, only to become the financial powerhouse before it can become an economic power.
- The yuan needs to be included in the SDR basket, Lu writes
- China’s current financial structure is dominated by indirect financing and doesn’t make enough sense, Lu writes
- China should further improve stock market and increase the proportion of equity financing, Lu writes
Charts: Bloomberg
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