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China Injects More Liquidity, Strengthens Yuan As Foreigners Dump Record Amount Of Japanese Stocks

The evening started with disappointing Japanese trade data cross the board - weakest imports, exports, and trade balance in 6 months - which follows the largest selling of Japanese stocks by foreigners ever. China opened with the first rise in margin debt in 6 days, stocks were mixed in the pre-open after last night's epic farce ramp. PBOC strengthened the Yuan fix modestly and also injected another CNY 40 billion.

 

Japanese trade data was disappointing...

  • *JAPAN AUG. EXPORTS RISE 3.1% Y/Y, EST.. +4.3%
  • *JAPAN AUG. IMPORTS FALL 3.1% Y/Y, EST -2.5%
  • *JAPAN AUG. TRADE DEFICIT IS 569.7B YEN, EST 540.0B

All at 6-month lows and missed expectations.

Foreigners have never sold more Japanese stocks ever...

 

Which explains why The BoJ was buying so heavily!! And for now, a rampacious bid open is being sold...

 

*  *  *

Then China opens..

And Margins are on the rise again...

  • *SHANGHAI MARGIN DEBT BALANCE RISES FIRST TIME IN FIVE DAYS

Stocks are mixed after last night's epic ramp idiocy..

  • *CHINA'S SHANGHAI COMPOSITE INDEX FALLS 1% TO 3,119.89 AT OPEN
  • *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 0.7% TO 3,287.66

 

Regulator's pressure appears to be paying off...

MS & CS have ceased offering synthetic short products under Shanghai-Hong Kong Stock Connect. Good boys!!

— Simon Ting (@simonting)

PBOC added more liquidity...

  • *CHINA PBOC TO CONDUCT REVERSE REPOS: TRADER
  • *PBOC TO INJECT 40B YUAN WITH 7-DAY REVERSE REPOS: TRADER

And then strengthgened the Yuan fix...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.3670 AGAINST U.S. DOLLAR

 

 

Charts: Bloomberg