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PBOC starting to panic? Keep an eye on the USD/CNH

A few days back I mentioned information that had come to my attention regarding the ongoing meltdown in the Chinese property market. Some of you will have read that and taken in on board I hope. Well, this morning news has emerged from China (not confirmed) , that apparently the PBOC (Peoples Bank of China) is mulling the idea of offering unsecured fresh property loans to distressed developers. If that is true, then such would be most likely facilitated via the state owned banks. Also, if is this true, then it represents a state of near panic by the Chinese authorities and one that is unprecedented too. The USD/CNH is trying to press higher this morning, but in relative terms the Yuan remains strong by recent standards. Given the situation that does not make any sense, and besides it looks entirely contrived to me. So, this is most definitely a space to keep a close eye on, because from everything I have seen and heard in recent days; merely endorses what I was told before I first mentioned it to you. The USD/CNH is currently trading at 7.1565

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