China Draws Line In Sand At 2016 Closing Lows As State Funds Buy Stocks

It looks like China has had enough of the stock market declines for the time being. Policymakers have taken a series of steps this month to shore up the yuan in an apparent effort to defend ~6.90 and then guard against the psychologically important 7-handle as the turmoil in Turkey threatened to put renewed pressure on China along with EM more generally. Beijing's three-pronged effort involved the reinstatement of forwards rules (August 3), the chiding of onshore banks for selling RMB (August