Yuan Archive

China reduces long term treasuries by record amount

Notice US Tsy yields fell to their lows even with China reducing holdings. The fear mongerers will just tell us to thank goodness someone else came in to replace them, and that without the Fed buying it’s all over for the US, etc. To which I say, it’s just a reserve drain, ...Read More

China Yuan Pledge Suggests Peg to Dollar May Go

Reads to me like they don’t like the yuan strength vs the euro which means it could weaken vs the dollar if they buy euro instead of dollars as suggested below: China Yuan Pledge Suggests Peg to Dollar May Go June 19 (Bloomberg) — China’s central bank said it will allow a ...Read More

CH News

Check out the property story below. And they do seem very worried about inflation. Not sure if they can control it without triggering a crash. Maybe. China’s Stocks Have ‘Corrected Enough,’ BofA Says China’s Monthly Car-Sales Growth Slows Amid Inflation China Think Tank Sees 4.2% Inflation, Urges Yuan Flexibility ‘Measures to cool ...Read More

Inflation in China?

[Skip to the end] The circumstantial evidence builds that there’s already an inflation problem, politically, probably due to those up and coming kids with the western educations at the finest schools pestering their elders about it. And, if so, when foreign direct investment loses its profitability due to rising domestic costs, the ...Read More

NYT: China central bank is short of capital

[Skip to the end] Main Bank of China Is in Need of Capital by Keith Bradsher HONG KONG — China’s central bank is in a bind. It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and ...Read More