China economy: Earlier this week, an official measure of activity in the giant factory sector fell to its lowest level since mid-2012, stirring fears that the country slowing economy was in for a hard landing, according to Deutsche Welle. Hoping to calm markets before the beginning of the Lunar New Year holiday season this weekend, the People Bank of China , the country central bank, supported the yuan, which closed at its highest level in almost a month on Tuesday. Trading on the country stock market had been suspended twice to prevent markets from panicking, and the value of the national currency, the yuan , dropped to a five-year low against the US dollar. But the question remains where China economy is heading. Kyle Bass of Hayman Capital Management, for instance, invested about 85 percent of his portfolio "in trades that are expected to pay off if the yuan and the Hong Kong dollar depreciate over the next three years," according to the paper. And, of more interest to money managers: where is the country currency heading Betting against the yuan According to the Wall Street Journal, several operators of big US hedge funds have been betting big money on the yuan being in for a sharp drop.
(news.financializer.com). As
reported in the news.
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