Soros (HFs) vs PBOCSubscribe
So, hedge funds have been making speculative bets against the Yuan. After Soros released his piece last week outlining how "A hard landing is practically unavoidable", a government official responded with “Soros’ challenge against the renminbi and Hong Kong dollar is unlikely to succeed, there is no doubt about that"
Between market controls and supporting the currency, and trying to maintain a reserve currency status and balancing its forex reserves, how much can China intervene and for how long?
Sparring words is one thing - even though the Chinese government has been adept at it, but when you are facing a currency crisis how long can you hold on? All key indicators related to Housing, Shipping, and sectors like Steel, Mining and General Manufacturing point that China is slipping into recession territory. So how long can they support their sputtering economy and their currency, all the while trying to maintain an internal image of a stable currency
Would love to know the community's broader thoughts on this?