Mar
06
How Hedge Funds Are Getting Around the PBOC’s Market Meddling
By
Members of China’s People’s Liberation Army walk past the People’s Bank of China headquarters in Beijing.
Photographer: Qilai Shen/Bloomberg
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Korean won, Taiwan dollar, ETFs are seen as safer wagers
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Need for alternatives increases as China burns speculators
Hedge funds with a bearish view on China’s currency are increasingly betting against yuan proxies instead, after the central bank stepped up efforts to stabilize the exchange rate.
Crescat Capital in Colorado is shorting U.S. exchange-traded funds that track Chinese and South Korean stocks, while Hong Kong-based Bright Stream Capital Management favors the Korean won and Taiwan’s dollar. The exchange rates tend to decline on negative China sentiment because the nation is their biggest export market…
How Hedge Funds Are Getting Around the PBOC’s Market Meddling
