, Columnist
Kyle Bass Was Right to Exit His Yuan Short
China’s central bank has learned how to make life painful for bears.
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It may seem like a strange time for hedge fund manager Kyle Bass to exit his short bet against the offshore yuan – just as the trade looks to have a chance of becoming seriously profitable.
Almost four years after the long-time China bear made the wager, the currency is under increasing pressure amid a worsening trade conflict. If nothing else, fears of a global economic slowdown are giving traders a reason to flee to the haven of the dollar. That points to further weakness in emerging-market currencies, the yuan included.