http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/ How Will Shadow Funds Affect the Yuan? Chinese markets are falling. Will the Yuan follow? Another detail in the slowing of the Chinese economy and subsequent adjustments has emerged. Bloomberg reports that shadow funds unwinds are responsible as China markets reel. A $1.7 trillion source of inflows into Chinese markets has suddenly switched into reverse, roiling the nation’s money management industry and sending local bonds and stocks to their biggest losses of the year. The turbulence has centered on so-called entrusted investments — funds that Chinese banks farm out to external asset managers. After years of funneling money into such investments, banks are now pulling back in response to a series of regulatory guidelines over the past three weeks that put a spotlight on the risks. Critics have blamed entrusted managers for adding leverage to China’s financial system and reducing transparency. The Chinese stock market value fell by $325 billion in a week and bonds went up to their highest level in two years. The government wants these shadow funds under better control and supervision because they often use leveraged investment vehicles that can accelerate losses during down markets. And shadow funds have been known to invest in otherwise restricted areas of the economy, namely real estate and commodity producers who are short of cash. Pulling money out of these funds has brought the market down but did it hurt the Yuan? Stable Yuan Despite a stock market retreat the Yuan has remained in the 6.88 to a dollar range. In fact the Yuan remained in about this range for the five months since Trump’s election. Prior to that the Yuan had been falling in fits and starts for two years. The stabilization of the Yuan is a relief for China as it helps stem the flow of money out of China due to the plummeting Yuan.

1. HOW WILL SHADOW FUNDS AFFECT
THE YUAN?
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Chinese markets are falling. Will the
Yuan follow?

3. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Another detail in the slowing of the
Chinese economy and subsequent
adjustments has emerged.

4. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
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5. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Bloomberg reports that shadow
funds unwinds are responsible
as China markets reel.

6. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
A $1.7 trillion source of inflows into
Chinese markets has suddenly
switched into reverse, roiling the
nation’s money management
industry and sending local bonds
and stocks to their biggest losses of
the year.

7. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
The turbulence has centered on so-
called entrusted investments —
funds that Chinese banks farm out to
external asset managers.

8. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
After years of funneling money into
such investments, banks are now
pulling back in response to a series
of regulatory guidelines over the past
three weeks that put a spotlight on
the risks.

9. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Critics have blamed entrusted
managers for adding leverage to
China’s financial system and
reducing transparency.

10. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
The Chinese stock market value fell
by $325 billion in a week and bonds
went up to their highest level in two
years.

11. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
The government wants these
shadow funds under better control
and supervision because they often
use leveraged investment vehicles
that can accelerate losses during
down markets.

12. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
And shadow funds have been known
to invest in otherwise restricted
areas of the economy, namely real
estate and commodity producers
who are short of cash.

13. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Pulling money out of these funds has
brought the market down but did it
hurt the Yuan?

14. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Stable Yuan

15. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Despite a stock market retreat the
Yuan has remained in the 6.88 to a
dollar range.

16. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
In fact the Yuan remained in about
this range for the five months since
Trump’s election.

17. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Prior to that the Yuan had been
falling in fits and starts for two years.

18. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
The stabilization of the Yuan is a
relief for China as it helps stem the
flow of money out of China due to
the plummeting Yuan.

19. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Despite Mr. Trump’s rhetoric during
the election campaign China is no
longer manipulating its currency to
keep it cheap.

20. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Rather the land of managed
capitalism is fighting to keep the
value of the Yuan from falling further.

21. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
It all as to do with the state of the
global economy, excessive debt in
China and an economic plan that no
longer works like it did as China was
in the first part of its growth cycle.

22. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Bloomberg says that Yuan
pessimists are multiplying.

23. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
The well-to-do have been moving
their assets into dollars for a few
years as they see the greenback as
a safe haven while the Yuan falls in
value.

24. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
And the flight of capital from China
reduced China’s currency
reserves.

25. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
As China’s economic miracle
unfolded the nation accumulated
impressive foreign currency
reserves.

26. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
In 2015 Chinese reserves reached
$4 Trillion and since then have been
falling as China has sought to
support a falling Yuan.

27. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
According to Trading Economics
reserves are down to $3.16 Trillion
as of September of 2016.

28. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
Bloomberg reports that Chinese
reserves fell $80 Billion more in
October.

29. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
They suggest that China could be
due for a shock fall in foreign
exchange reserves.

30. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
It is likely that people who were
unable to move money offshore have
used shadow funds to gain more
profit to make up for a falling Yuan.

31. http://www.forexconspiracyreport.com/how-will-shadow-funds-affect-the-yuan/
That loophole is being closed. But a
stable Yuan may reduce the
inclination to move money offshore
or take on undue risk in search of
profits.