After Weeks of Losses, China Stock Traders Question Beijing Put
- Shanghai Composite sinks Friday after short-lived rebound
- Yuan breaks 6.9 per dollar, offshore rate near record low
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If there was any optimism that China would soon rescue its tumbling markets, it’s quickly fading away.
Stocks just sank 2.5%, capping their fourth week of losses, while the offshore yuan is edging closer to its record low. Falling equity volume, even on rebound days, showed there’s not much appetite to buy the dip. Foreigners keep selling mainland-listed shares at a record pace. U.S. hedge funds -- who are sitting on a whole lot of bullish China stock derivatives -- are getting burned.