Chinese Stocks Slump After “Arrest-Fest”, Yuan Strengthens Most In 9 Months, Goldman Cuts Outlook

Jon Alternative Media, Banking, Blogosphere, Economy, Government, Market Commentary

Update: So much for the “no more intervention” Since the government bailout fund has run dry of money, the brokerages have to step up – CHINA SAID TO ORDER BROKERAGES TO BOOST STOCK MARKET SUPPORT
A busy weekend in Asia was dominated by mayhem in Malaysia, and witch-huntery in China. Chinese authorities began a wide-scale crackdown on rumor-mongerers, arrested journalists, and evendetained a regulator for insider trading, as they lifted loan caps on the banking system at the same aswithdrawing (verbally) support for the stock market. China strengthen the Yuan fix by 0.15% to 6.3893 – this is the biggest 2-day strengthening of the Yuan fix since Nov 2014. Then just to rub some more salt in the wounds, Goldman cut China growth expectations to 6.4% and 6.1% respectively for the next 2 years. Chinese stocks are opening modestly lower (SHCOMP -3.3%).
*CHINA’S CSI 300 INDEX FALLS 2.8% TO 3,247.39 AT BREAK *CHINA’S SHANGHAI COMPOSITE FALLS 2.6% TO 3,148.08 AT BREAK

This post was published at Zero Hedge on 08/30/2015.