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How Are China’s Money Markets So Unaffected?

There is a lot about the crash in Chinese stocks that remains out of view. Of course, margin debt persists at the forefront of the reversal but I don’t think that begins to explain the depth and speed of the downturn. The timing seems to line up with very well with official policy measures intended to slow down the stock [...]

The Gold-China Connection

By Jeffrey P. Snider|2013-07-02T14:00:33-04:00July 2nd, 2013|Commodities, Currencies, Federal Reserve/Monetary Policy, Markets|

Gold sank lower in coincidence with the reappearance of Chinese liquidity issues. Much like the Fed, the PBOC has both denied it would inject liquidity into the interbank markets while at the same time contradicting itself. The latest from PBOC governor Zhou Xiaochuan was centered on the ephemeral concept of “stability”: “The central bank will make comprehensive use of policy [...]

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