Juliet Chung and Carolyn Cui, US Hedge Funds Bet Against China; Bets against the yuan come at a time of enormous sensitivity for China Leaders. Wall Street Journal, Feb 1, 2016 (one of front-page top reports). http://www.wsj.com/articles/curr ... nas-yuan-1454236202
Quote:
"Kyle Bass’s [Dallas-based] 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 the Hong Kong dollar. * * * [the bet:] the yuan and Hong Kong dollar depreciate over the next three years * * * Mr Bass * * * believes the yuan could fall as much as 40% in that period.
"Billionaire trader Stanley Druckenmiller and hedge-fund manager David Tepper have staked out positions of their own against the [Chinese] currency * * * David Einhorn’s Greenlight Capital Inc. holds options on the yuan depreciating.
"The effort [to bet against yuan] is a lot riskier, though, than taking on a currency whose value is set by the market. China’s state-run economy gives the government a number of levers to pull and tremendous resources at its disposal.