Hong Kong’s Hang Seng China Enterprises Index tumbled 4.2 percent to the lowest level since Oct. 6, 2011. Trading of shares and index futures in the mainland was halted by automatic circuit breakers from about 9:59 a.m. after the CSI 300 Index slid more than 7 percent. The People’s Bank of China cut its reference rate on Thursday for an eighth straight day, fueling concern that tepid economic growth is prompting authorities to guide the currency lower.Central planners assume they can control events. It never works that way. Hang on, folks.
“The yuan’s depreciation has exceeded investors’ expectations,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co. “Investors are getting spooked by the declines, which will spur capital outflows.”
The yuan weakened 0.6 percent to 6.5938 per dollar at 4:20 p.m. in Shanghai. The currency rallied from early declines in offshore trading, strengthening 0.4 percent in Hong Kong amid speculation the central bank propped up the exchange rate after setting a weaker fixing that sent the currency tumbling.
Thursday, January 07, 2016
Here we go again
China is having problems again:
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3 comments:
Shares in company's making new Pacific islands are up sharply, though.
The South China Sea is awash in cash... and brand new beaches!
China is learning the hard way that just because you built it doesn't mean they will come. Hopefully this is a good wake up call and not a prelude to the next deep recession or depression.
And the new beaches? Great way to make sure the Malaysians, Vietnamese, Brunei, and the Filipinos won't work with them to get drilling rigs in the South China Sea, I guess.
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