Market Vectors Chinese Renminbi/USD ETN (CNY) - NYSEARCA
  • Tue, Jun. 14, 3:25 AM
    | Tue, Jun. 14, 3:25 AM
  • Mon, Apr. 25, 4:28 AM
    • China's total domestic and foreign debt grew to a record 237% of GDP in Q1, the FT calculates, or 163T yuan ($25T).
    • The surge in borrowing comes as the Chinese government yet again turns on the spigots in order to boost stuttering growth.
    • What worries economists is not the size of the debt, which is comparable to the U.S. and the eurozone, but the speed with which it has accumulated. The Chinese figure was 148% at the end of 2007.
    • "Every major country with a rapid increase in debt has experienced either a financial crisis or a prolonged slowdown in GDP growth," Goldman Sachs' Ha Jiming wrote this year.
    • ETFs: FXI, ASHR, YINN, EWH, CAF, FXP, YANG, KWEB, PGJ, GXC, CYB, HAO, CQQQ, CNY, MCHI, PEK, CHN, CHIX, CHIQ, TAO, QQQC, DSUM, TDF, XPP, ASHS, CNXT, YXI, CHAU, YAO, CN, FCA, GCH, CHAD, FXCH, ECNS, CXSE, CHII, CHIM, KBA, CHIE, CBON, EWHS, KCNY, JFC, FCHI, KFYP, AFTY, FHK, ASHX, XINA
    | Mon, Apr. 25, 4:28 AM | 16 Comments
  • Thu, Apr. 14, 4:16 AM
    • The People’s Bank of China weakened the daily yuan reference rate by the most in three months after the dollar strengthened and a surprising easing by Singapore that weighed on Asian currencies.
    • The weaker fixing “is a reflection of the overnight dollar recovery,” one economist said. “Still, it’s slightly weaker than expected, making me feel like there is still a weakening bias.”
    • The yuan fell 0.12% in Shanghai to 6.4847, a third straight day of declines.
    • ETFs: CYB, CNY, FXCH
    • Now read What Capital Exactly Is Flowing To And From China »
    | Thu, Apr. 14, 4:16 AM | 2 Comments
  • Sun, Apr. 3, 9:45 AM
    | Sun, Apr. 3, 9:45 AM | 6 Comments
  • Mon, Mar. 14, 11:40 AM
    • China's devaluation last summer spurred massive plays from those believing the yuan would fall even further, but those bets have turned out to be losers as Beijing has proven itself a worthy opponent against the shorts.
    • “China wants to have control over the yuan and will do whatever it can to ensure that no one else decides what direction it goes in,” says one money manager. "Is it worth fighting against a huge economy and policy maker that could take you out? No.”
    • Among those who bet against the yuan were Kyle Bass, Crispen Odey, and Bill Ackman, prompting Bill Gross to compare the shorting to the speculative attack that helped level the British pound in 1992.
    • Sticking with the trade is Adam Rodman from Segra Capital Management. “We haven’t pared down exposure."
    • ETFs: CYB, CNY, FXCH
    • Previously: Goldman brushes off idea of Chinese currency crisis (March 14)
    | Mon, Mar. 14, 11:40 AM | 2 Comments
  • Fri, Mar. 11, 3:50 AM
    | Fri, Mar. 11, 3:50 AM | 11 Comments
  • Mon, Mar. 7, 4:26 AM
    | Mon, Mar. 7, 4:26 AM | 5 Comments
  • Fri, Feb. 26, 2:54 AM
    • China's recent attempt to inject cash into its economy - allowing banks to repackage and resell receivables - didn't work. Banks, it turns out, didn't like the idea of moving good assets off their balance sheets to make room for more lending in a debt-distressed environment.
    • Instead, Beijing has now decided to allow banks to repackage and resell their bad debt ("NPLs"): "China will allow domestic banks to issue up to 50B yuan ($7.7B) of asset-backed securities based on their non-performing loans, the first quota for such sales since 2008," Bloomberg says. "The quota, which will initially be allocated mainly to China’s largest banks, will allow lenders to remove non-performing loans from their balance sheets at a time when asset quality is deteriorating and the economy is slowing."
    • The quota could help banks remove 100B-150B yuan of distressed loans from their balance sheets, depending on the discounts needed to attract buyers.
    • Possible complications: i) The amount is small given the size of China's banking system, and the opacity around its NPL rates. ii) It's not clear how much demand their is for their NPLs, especially given investors' risk aversion ("Hedge fund managers such as Kyle Bass have warned that the nation’s banking system may see losses of more than four times those suffered by U.S. lenders during the 2008 credit crisis. Goldman analysts, in a Feb. 17 report, flagged the potential for a 9% bad-loan ratio in China’s banking system, more than the official reported level of 1.7%.") . iii) Even if they do find buyers, it's not obvious that banks will take advantage of the slack to lend back to the "real economy."
    • Previously: China's conundrum: Keep printing money, or resign itself to even more defaults? (Feb. 19)
    • ETFs: FXI, ASHR, EWH, YINN, CAF, KWEB, GXC, PGJ, FXP, CYB, HAO, YANG, CQQQ, PEK, CNY, CHIX, TAO, MCHI, CHN, QQQC, CHIQ, DSUM, TDF, XPP, CNXT, ASHS, YAO, YXI, CN, GCH, CHAU, ECNS, CHNA, FCA, FXCH, CHII, EWHS, CHIE, KBA, CHIM, CBON, FCHI, KFYP, JFC, CHAD, AFTY, FHK, CHNB, XINA, ASHX, CXSE
    | Fri, Feb. 26, 2:54 AM | 22 Comments
  • Fri, Feb. 19, 7:26 AM
    • There are only two ways China can play the increasing number of companies defaulting on their debt, BAML analyst David Cui says: i) Let the defaults take their course, risking a "chain reaction." ii) Continue printing money to bail out dysfunctional companies, putting downward pressure on the renminbi. That will make China's foreign non-RMB debt more difficult to pay, creating "financial system risk."
    • Yesterday, property investment company Shaanxi Xinsheng defaulted on RMB 4B. "As large as Xinsheng’s sounds, it pales against some of the other recent defaults in the lightly regulated P2P and private wealth management product markets," BAML says.
    • The endgame? "In a scenario in which investors are not bailed out and thus become more cautious, e.g, rolling over some of the debt instruments in the shadow banking sector, some borrowers may struggle to obtain credit, for example, developers and coal miners. Whether this scenario would trigger a chain reaction is a key risk we would need to monitor. If shadow banking investors continue to be bailed out, this would imply a further strengthening of the implicit guarantee, and potentially, put pressure on growth, increase the debt burden and hurt RMB stability. We re-iterate our view that financial system risk is arguably the most important risk facing market this year ... Until the debt issue is addressed, we believe it is unlikely we will see the bottom of the market."
    • See also: Why The Chinese Yuan Will Lose 30% Of Its Value (Feb. 18), China's Slumping Exports Could Sink The Global Economy (Feb. 16)
    • ETFs: FXI, ASHR, EWH, YINN, CAF, KWEB, GXC, PGJ, FXP, CYB, HAO, YANG, CQQQ, PEK, CNY, CHIX, TAO, MCHI, CHN, QQQC, CHIQ, DSUM, TDF, XPP, CNXT, ASHS, YAO, YXI, CN, GCH, CHAU, ECNS, CHNA, FCA, FXCH, CHII, EWHS, CHIE, KBA, CHIM, CBON, FCHI, KFYP, JFC, CHAD, AFTY, FHK, CHNB, XINA, ASHX, CXSE
    | Fri, Feb. 19, 7:26 AM | 10 Comments
  • Fri, Feb. 19, 3:35 AM
    | Fri, Feb. 19, 3:35 AM | 4 Comments
  • Mon, Feb. 15, 3:29 AM
    | Mon, Feb. 15, 3:29 AM | 14 Comments
  • Sun, Feb. 14, 2:29 PM
    • From Xinhua:
    • "The global financial markets have suffered sharp declines lately, with stocks plunging across Europe, Japan and the United States last week. Some players once again tried to link the global rout with China. However, such claims are unwarranted and playing the blame game in the face of challenges is useless."
    • "But as the Chinese equity market was closed for a week during the Chinese New Year, there has been no fresh news from China. Neither did China release any economic data or announce new policies that could move the markets during this period. Some of the media outlets in the United States carried reports this week on what they described as a "capital flight" from China, despite that the yuan has stabilized against the U.S. dollar recently."
    • "After years of massive monetary easing, some adjustments are inevitable, so "everyone seems to want to find someone else to put the blame on," China's central bank governor Zhou Xiaochuan said in a recent interview with Chinese magazine Caixin. Zhou said that there is no basis for the continual depreciation of the yuan and that "China would not let the market sentiment be dominated by these speculative forces." Meanwhile, it is important to differentiate between capital outflow and capital flight. The capital outflow may not be capital flight. The market has had unrealistic expectation for the stability of the yuan as a result of its being "too stable over the years," Zhou said."
    • "Once again, financial markets are painting an oversimplified picture of a very complex story," said Stephen Roach, senior fellow at Yale University's Jackson Institute of Global Affairs. "Central banks are starting to wean markets from the artificial support of years of unprecedented quantitative easing ... that could prove far more problematic than another China scare."
    • ETFs: FXI, ASHR, EWH, YINN, CAF, KWEB, GXC, PGJ, FXP, CYB, HAO, YANG, CQQQ, PEK, CNY, CHIX, TAO, MCHI, CHN, QQQC, CHIQ, DSUM, TDF, XPP, CNXT, ASHS, YAO, YXI, CN, GCH, CHAU, ECNS, CHNA, FCA, FXCH, CHII, EWHS, CHIE, KBA, CHIM, CBON, FCHI, KFYP, JFC, CHAD, AFTY, FHK, CHNB, XINA, ASHX, CXSE
    | Sun, Feb. 14, 2:29 PM | 37 Comments
  • Sun, Feb. 7, 9:31 AM
    • The Peoples Bank of China discloses that its foreign-exchange reserves fell by almost $100B in January.
    • The decrease is less than the $120B drop forecast by economists.
    • Beijing's fierce defense of the yuan has reduced its foreign exchange reserves to a three-year low.
    • Related ETFs: FXI, YINN, GXC, PGJ, FXP, CYB, YANG, CNY, MCHI, CHN, TDF, XPP, YAO, YXI, CN, GCH, FCA, FXCH, JFC, CXSE.
    | Sun, Feb. 7, 9:31 AM | 22 Comments
  • Fri, Feb. 5, 2:45 PM
    • Already at a three-year low, China's foreign-exchange reserves fell by $118B to $3.2T in January, according to economists' estimates. That would exceed the current record $108B whoosh in December. For all 2015, reserves fell more than $500B - the first annual decrease in nearly a generation.
    • The PBOC is tasked with taking the other side of a weakening yuan and massive capital outflows. “It’s an astounding reduction in their capital account position," says a fund manager. "The economy itself cannot turn this around."
    • The official number from the PBOC is due on Sunday.
    • Source: Bloomberg
    • ETFs: FXI, YINN, GXC, PGJ, FXP, CYB, YANG, CNY, MCHI, CHN, TDF, XPP, YAO, YXI, CN, GCH, FCA, FXCH, JFC, CXSE
    | Fri, Feb. 5, 2:45 PM | 20 Comments
  • Wed, Jan. 27, 11:15 AM
    • Among Beijing's strategies is a warning to George Soros not to attempt to do the PBOC what he famously did to the Bank of England (broke it) in the early 1990s. "Declaring war on China's currency? Ha ha," is the title of the article in the Communist Party's mouthpiece.
    • Other steps include curbing the ability of foreign companies in China to repatriate earnings, lowering the amount available for banks in Hong Kong to make yuan loans, and banning yuan-based funds for overseas investments.
    • “They’re sparing no effort to prevent capital outflows,” says a Chinese banking executive . “All the measures are the most aggressive I’ve seen in recent history.”
    • The moves come as the central bank burns through hundreds of millions of dollars from its massive (but far less today) foreign exchange reserves.
    • ETFs: FXI, ASHR, CAF, YINN, PGJ, GXC, FXP, CYB, YANG, CNY, CHN, PEK, MCHI, TDF, XPP, YAO, GCH, YXI, CN, CXSE, FXCH, FCA, CHNA, KBA, JFC, AFTY, CHAU, CHAD, ASHX, XINA
    | Wed, Jan. 27, 11:15 AM | 44 Comments
  • Sun, Jan. 17, 5:40 AM
    • China's central bank is preparing to raise the reserve requirement ratio for yuan deposits placed in yuan clearing banks from Jan. 25, Reuters reports.
    • Market participants suspect the planned reserve increase is intended to soak up additional liquidity in the offshore market as the PBOC tries to stem speculation of further depreciation in the currency.
    • The central bank, which had established the reserve requirement ratio for offshore yuan participating banks in 2014, will return the rate to a normal level, the sources said, without specifying what that level would be. It had been set at zero.
    • ETFs: CYB, CNY, FXCH
    | Sun, Jan. 17, 5:40 AM | 8 Comments
CNY Description
The Market Vectors-Chinese Renminbi/USD ETN seeks to track the performance of the S&P Chinese Renminbi Total Return Index (SPCBCNY).
See more details on sponsor's website
Country: China
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