sharpe_mind

The Informal China Banking Sector is Growing

China's reserves grew by nearly 75 Billion USD in April. Not a month you can attribute much to mark to market on FX or bond positions. This was three times the trade surplus plus FDI.

The yuan barely moved in April as authorities capped the exchange rate around 7 in order to "stabilize expectations of further yuan appreciation"; clearly noone was convinced by this gesture.