"Yeah, right"

The Yuan rose for the first time in six days (+0.2% to 6.7948) as the PBOC said it favours two-way fluctuations to deter speculative flows of capital…....Yeah right. Elsewhere, FDI rose for the 12 consecutive month in July (+29%) and is now up 21% in the year to date at $58.4 billion. Meantime, the Conference Board says the economy continues to expand moderately and domestic markets offer the most dynamic business opportunities (remember CB data can be prone to revisions). The Government is also selling down its stocks of US Treasuries as yields hit all-time lows but has done very nicely along the way thank you. And finally, the best (potential) news of the day is the probable merger of A and B Shares in Shanghai.

Shanghai Composite:
Today: +0.38% at 2,671.89 at close
This week: +2.5%
YTD: -18.5%

Hang Seng:
Today: +0.31% at 21,137.43 at close
This week: +0.1%
YTD: -3.4%

Oil: $75.88
Gold: $1228.90
Euro/$: 1.2888

Headlines

• FDI into China increases in July for 12th consecutive month
• China leading economic index rises for second month says Conference Board
• China cuts long term US Treasuries by most ever as yields drop
• Yuan ends five day drop as China favours two-way moves to ease speculation
• China B-Shares to advance on possible A-Share merger, according to CICC
• PBOC sells one year bills at unchanged yield of 2.0929%
• Home sales rise 26% in Shanghai