Yuan ETFs Could be Pinched by Bearish Bets

Kyle Bass’s Hayman Capital Management has sold off the bulk of its investments in stocks, commodities and bonds so it can focus on shorting Asian currencies, including the yuan and Hong Kong dollar,” according to MarketWatch.

“What matters more is whether this change ushers in a period of sustained currency depreciation. The yuan’s slow and substantial appreciation over the past decade indicated Beijing had abandoned the use of foreign exchange (FX) policy to stimulate the economy. Dusting off this tool and re-applying it would constitute a threat to EM stability in particular,” said BlackRock in a note out last year.

“Billionaire trader Stanley Druckenmiller and hedge-fund manager David Tepper have staked out positions of their own against the currency, also known as the renminbi, according to people familiar with the matter. David Einhorn’s Greenlight Capital Inc. holds options on the yuan depreciating,” adds MarketWatch.

Market Vectors Chinese Renminbi ETN