(Bloomberg) It’s exactly the kind of shock that many hedge fund managers feared as they mulled whether to bet big against China’s currency. In a surprise statement on Friday night, the People’s Bank of China announced a rule tweak that will make bearish yuan trades much more expensive. The move, which sparked a sharp rally in the currency, echoed efforts to deter short sellers almost three years ago. It also underscored why hedge funds have largely avoided wagers against the yuan in recent months, missing out on one of the world’s most profitable currency trades.
China Reminds Hedge Funds That the Yuan Is a Dangerous Short
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