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Chinese Stocks Tumble To Worst 3-Week Slump In A Year As Yuan Plunges To Record Discount

On the heels of worse than expected Manufacturing PMIs (both indicating economic contraction) and the "taking away" of Minsheng Bank's CEO in a clear signal that the corruption probe is refocusing on the banking industry, Chinese stocks and currency are tumbling. Retail investors dreams are going up in smoke as the Shanghai Composite suffers its biggest 3-week loss in over a year and tumbles to a 3.8% loss year-to-date - not what the gambling 'investors' were expecting. But perhaps more worryingly for Chinese officials is the continued selling pressure on the Yuan - now at a record 1.94% discount to PBOC's fixing - very close to forcing intervention of decision time on a wider peg-band or even more free-floating currency.

 

Chinese stocks down over 2% at the open - lost all 2015 gains...

 

With the biggest 3-week loss since early 2014...

 

As the Yuan keeps getting sold...

 

In spite of the government's warning to NOT BUY DOLLARS.

 

Charts: Bloomberg