Whatever Happens to Evergrande, Nobody Wants to Short the Yuan
- China bears are deterred by high trade surplus, negative carry
- Yuan has reversed spike in volatility triggered by Evergrande
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The highly public unraveling of China Evergrande Group is shaking markets worldwide, but analysts are confident the nation’s own currency will be spared.
The yuan has been the subject of almost no short recommendations. Even among bearish analysts, few suggest betting against it directly amid soaring trade surpluses, negative carry for short positions and potential intervention by the People’s Bank in the case of Evergrande’s collapse.