Chinas Currceny Reserves droped down to less than 3.000 Billion US-Dollar, offically. Probably it´s far more down as China is reporting every month.
China can not control it´s capital outflows. China is a dictatorship. China will add more pressure to stop US-Dollar leaving the country. But: Finally this will cause a situation like the Black Wednesday 1992 (devaluation of GDP). https://en.wikipedia.org/wiki/Black_Wedn...
Even all global stockmarkes right now on a strong up move traders need to mention the alarmsignals as well. If ever China is forced again to devaluate the Yuan again it will come unexpectedly and will at least cause a sharp sell off at any stockmarket globally. If you follow the trading ideas here start now to protect any longposition with out of the money put options or any other hedge.
And China has been funneling billions of dollars into its economy to keep it chugging along despite an increasing number of cracks in its credit system and to prevent its currency from depreciating too quickly. Despite all its efforts to prevent money from leaving the nation, capital outflows are continuing.
On the Outs
China's monthly capital outflows have been growing
Quote: The Chinese yuan and the Indian rupee are expected to weaken, although less than previously thought, reversing recent gains as rising chances of a U.S. interest rate hike this month boost the dollar, a Reuters poll found.Since the start of the year, most Asian currencies have risen against the dollar, as uncertainty about President Donald Trump's economic policies hurt the greenback.Fed officials over the past few days suggested that rates need to go up sooner rather than later to avoid falling behind the curve on inflation in the face of proposed economic stimulus from Trump's administration.
The view for a weaker yuan also stands alongside Trump's accusations that Beijing has devalued its currency to gain a trade advantage and as China struggles to stem capital outflows depleting its FX reserves. Source: http://in.reuters.com/article/forex-poll...
U.S. says 'major conflict' with North Korea possible, China warns of danger of escalation
Moody's downgrades China for first time since 1989
Moody's says reforms won't prevent rise in economy-wide debt
European shares drift lower at opening bell
China stocks end steady after sharp falls
Trade active: Zeitpunkt unklar:
China is pumping a lot of cash into its economy to calm investors
China injected nearly $130 billion into its market in the last two weeks to quell a bond rout
The People's Bank of China is seeking to balance market sentiment with its need to crackdown on debt
Rapidly expanding liquidity could make it more challenging for Beijing to counteract capital flight — its relatively static foreign exchange reserves are growing less potent when compared to the amount of cash that could be leaving the country https://www.cnbc.com/2017/11/22/china-ca...
Asian shares were mostly lower on Friday
Chinese shares staged a recovery after mainland indexes tumbled almost 3 percent in the last session
Mitsubishi Materials lost more than 9 percent after the company said some of its units had falsified product data
The overnight trading session was quiet, with U.S. markets closed for the Thanksgiving holiday