When in doubt, devalue!
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Big news this morning as Beijing opts for a central planning move that doesn’t work. Yep, we taught them that (after Japan, Argentina, Zimbabwe, etc. tried the same for the sake of “exports”). The biggest devaluation move in two decades begs the basic question: just how made-up is the +7.0% GDP story in China with -9% exports?
Expect cross-asset class volatility to continue to rise and FX/correlation risk to ramp on this. The Shanghai Casino Composite is down 1 basis point on the news … #funny
If you didn't know why locals have been selling Singapore, Taiwan, Indonesia (-4-6% in the last month) well now you know #Yuan
This is simply one more sign of panic by Chinese central planners—their 7.0% "growth" number is a lie.
