China Devalues Yuan To Fresh 4-Year Lows, Arrests Top Securities Firm Exec As Stocks Slide Despite Rate Cuts
Confusion reigns at Bloomberg also... (look at URL - original title, and compared to title posted at 8pmET)...
As we detailed earlier:
The Asia morning begins mixed in stock markets, The PBOC explains itself "this is not a shift in monetary policy," - except it is the first such set of measures since 2008, further deleveraging as China margin debt drops CNY1 Trillion from June peak to lowest since March, Regulators begin probing securities firms (and their malicious short sellers), Index futures trading fees will be raised and trading positions restricted. Stocks are limping only modestly higher (after the rate cuts) as Yuan is fixed at 6.4043 - the lowest since August 2011.
Yuan fix weaker for 2nd day to new 4 year lows...
- *CHINA SETS YUAN REFERENCE RATE AT 6.4043 AGAINST U.S. DOLLAR
- *CHINA LOWERS YUAN FIXING TO WEAKEST SINCE AUG. 2011
Before China opens, it's worth noting that all the post-China close, pre-China open exuberance from the PBOC multiple rate cut has been eviscerated...
And bearin mind that...
- *ABOUT 17% OF MAINLAND STOCKS STILL HALTED FROM TRADING
Some more good news as deleveraging continues... lowest since March 2015
- *CHINA MARGIN TRADING DEBT DROPS 1 TRILLION YUAN FROM JUNE PEAK
- *SHANGHAI MARGIN DEBT BALANCE HALVES FROM JUNE RECORD HIGH - Balance is lowest since Jan. 12
But more restrictions are put in place:
- CHINA TO RAISE TRANSACTION FEES ON STOCK INDEX FUTURES TRADING - EXCHANGE STATEMENT
- CHINA TO RESTRICT TRADING POSITIONS IN STOCK INDEX FUTURES - EXCHANGE STATEMENT
As things are not going well in the Communist intervention - so the probes begin (as ForexLive reports)
The South China Morning Post report that four brokers say the CSRC is probing their business
- Haitong Securities, GF Securities, Huatai Securities and Founder Securities
- All made stock exchange statements that they had received notices from the China Securities Regulatory Commission
- For suspected failure to review and verify clients' identitiesAlong similar lines, Xinhua reported:
- 8 people from Citic Securities were being investigated for possible involvement in illegal securities trade
- A staff member from Caijing magazine was also being probed for spreading rumours
- A current and a former staff member at the CSRC were also being investigated for suspected insider trading
Credit to Zero Hedge