What happened to the yuan just now? Just fell enormously compared

If you use chinese search engines it still gives you the old, stable values.

Fishy...

>>1653745
China is running out of reserves to slow the free fall of the yuan. They've basically be holding up its value for the last year or so through market intervention and capital controls alone.

>>1653783
What implications does this have? Could the yuan completely plummet causing a financial crisis at least in china?

>>1653768
Some aggregators are also. Mine shows that there's been a crash the past few minutes.
Additionally, this is traded on the smaller HK currency exchange, and most of it is Chinese companies trading yuan to western currencies with their HK subsidiaries.

>>1653789
It very much depends on the actions of the Chinese government/central bank.

What will probably happen is the Chinese government let's the yuan freely float (meaning removing any rules and government mandated price levels), take a big hit to the domestic economy, and then fiscal and monatary stimulus will kick in (something akin to the fed buying up all the mortgage backed securities and bailing out the banks, but in China) and everything will return to normal.

Markets will go crazy, but in the end not much will happen. The yuan isn't really used on the international market but by Chinese companies.

tldr: yes, but it will be managed and mostly localized to Southeast Asia.

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>>1653745
Was going to buy some short positions on Yuan 2 days ago. Please kill me.

>>1653808
Allowing the yuan to float freely is by far the best solution. It will prevent big hits to the domestic economy.

Floating the yuan has always been in China's interest. IMO China has a right to manipulate the value of its own currency, but American politicians don't agree, and Trump has threatened tariffs. So if China float the yuan, they can say it's at market value and it's the markets, not the Chinese government, who are to blame for the exchange rate.

>>1653845
Allow the currency to float freely is always the best decision, but doing so would allow the asset bubble in china to burst, causing something similar to 2008 but localized in china.
The central bank/government of china is trying to shrink the bubble, and I'm not sure if they can succeed.

But yeah, I find it hilarious that Trump has complained that the chinese keep their currency too low, while the past few years they've tried their hardest to keep it from crashing.

>>1653745
>>1653808

Hong Kong-Shenzhen Link live, noobs SHENZHEN just opened their stock market which is larger by value than the U.K

This isn't 2015.

>>1653854
What do you mean by asset bubble?
My understanding of economics is pretty much from watching the big short, so please excuse me not understanding everything.

It is good for the Chinese when their currency steadily drops from its already artificially depreciated exchange rate. It will increase exports from China.

What the Chinese absolutely don't want is their currency to appreciate.

>>1653891
Shenzhen is half the size of the London Stock Exchange and only stocks, and capital outflow limitations are still in place. This isn't 2020 anon, wait a few years for your hype.

>>1653892
A housing bubble, bond bubble, soybean bubble, etc. China has more and more sources of credit, wealthier and wealthier citizens, and no where to put the money, as investment opportunities within China are scarce. As such, what investment opportunities there are (most notably housing) are raising in price by almost 50% a year, which is entire unsustainable.
Allowing Chinese investor's money to freely leave China would crash all these bubbles, causing a pretty substantial financial shock. As such China still has incredibly strict capital controls in place (meaning its very hard to yuan to leave the country), but even then money is fleeing the country into places like New York, Vancouver, and Seattle at incredibly rates.

>>1653892
Additionally, just google "Chinese asset bubble", bloomberg, WSJ, the economist, and forbes all have good articles on it.

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>tfw Trump is already making waves and he hasn't even been the president elect for a month

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>>1653900

it's a fact and not a "hype"
you're right actually, let us all go back to sleep and mind our business.

>>1653745

blimey, must be the weather

Time to buy some Yuan. Current conversion rate is what, $1 : ¥0.134?

>>1653916
I know its fact anon, and I'm as hyped as you. And yeah, in stocks alone Shenzhen is larger, but LSE does a lot more than stocks.

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>>1653745
Trump is putting them in their place (and he hasn't even started on them yet)