One Chart Suggests S&P Just Did China Bulls A ‘Bigly’ Favor

The point: Beijing is already predisposed to intervening in markets to offset any turmoil a sovereign downgrade might catalyze and you can bet that predisposition is stronger than ever ahead of the Party Congress.

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S&P Cuts China Just Ahead Of Party Congress

Well, the timing leaves something to be desired. 

Let’s Not All Panic About The Slowest Pace Of FAI This Century In China, Ok?

That’s cause for concern. Given that the country is the engine of global growth and trade, you don’t want to see the brakes slammed on. That said…

Yuan Tumbles As PBoC Gambit Puts The Brakes On – At Least For Today

I’m not sure it will ultimately be enough to get the job done, all things considered, but the PBoC’s decision to effectively remove a barrier to speculation against the yuan (that’s a crude way to describe it, but it gets the point across) by cutting a reserve requirement put in place in the days following the devaluation in 2015 seems to have succeeded in putting the brakes on the rally – if only for a day.

‘I Really Thought China Would Collapse. What Am I Doing With My Life?’

“None more so than the Chinese Yuan. Although most hedgies were all betting on a massive decline, the Yuan has been strengthening like Lance Armstrong after visiting his bio-chemist.”

Yuan Heads For Best Week In More Than A Decade As China Trade Data Is Resilient

“The extremely bearish USD sentiment spilled over to the yuan market, and fixing failed to cool down bullish sentiment,” Ken Cheung, a senior currency strategist at Mizuho Bank in Hong Kong notes, adding that “heading to the weekend, risk-off sentiment due to the foundation day of North Korea also raised safe-haven demand for the yuan.”

Offshore Yuan Falls After Weaker-Than-Expected Fix, Snaps Back

As we’ve said repeatedly, with Chinese equities riding a hot streak, with capital flight seemingly under control, and with a rapidly appreciating yuan bound to weigh on the economy eventually, don’t be surprised if the PBoC takes the opportunity to push back – at least a little bit. 

This Has Never Happened Before: Offshore Yuan Cements Record Rally

Meanwhile, you already know the story with the offshore yuan. And that story hasn’t changed. In fact, the offshore yuan rose against the dollar for a 14th consecutive session on Monday – that’s the longest streak on record.

This Has Only Happened 2 Other Times In – Well, In ‘Ever’.

Now admittedly, “2” is a small sample size, but…

Offshore Yuan Ties Record, Up 13th Consecutive Day

6.50 doesn’t look far-fetched – at all.

‘Unless There Is A War’ There Is No Stopping The Yuan Train

And to let Jitipol Puksamatanan – a Bangkok-based strategist at Krung Thai Bank – tell it, the only thing that’s going to stop this train is war.

Yuan Rides Ridiculous Hot Streak, Now Up 9 Sessions In A Row

Boy, I’ll tell you what, the yuan has got come serious momentum. 

While You Were Sleeping, Chinese Stocks Soared The Most In A Year

Whither China…

This Hasn’t Happened To The Yuan Since July Of 2014

“…this wouldn’t be the worst time to create some renewed depreciation.”

‘The Art Of War’ – Is China About To Retaliate With Another Devaluation ‘Shock’?

“There are roads which must not be followed, armies which must be not attacked, towns which must not be besieged, positions which must not be contested…” – Sun Tze, The Art of War