Hedge fund EDL Capital is betting on further falls for China's offshore currency and says the yuan's slide could be the next "black swan event" to rattle world markets, according to an investor presentation this month seen by Reuters.

EDL Capital, which manages about $1 billion, said factors weighing on the yuan include geopolitical tensions driving Western countries to re-home supply chains that will starve China of foreign investment. China’s labour market has also grown less competitive versus other Asian countries such as Vietnam and India, while a post-pandemic recovery has sputtered and foreign currency reserves “might be lower than what they are believed to be,” it said.

  • kent_ehEnglish
    15·
    1 year ago

    China’s labour market has also grown less competitive

    AKA, their people are starting to get paid a bit better than other more easily exploited people in some other countries.

    • 0x815@feddit.deOP
      14·
      1 year ago

      their people are starting to get paid a bit better than other more easily exploited people in some other countries

      That is hopefully the good part of the story, but a growing number of Chinese don’t find work at all, especially the youth. The government even refuses to release the unemployment data.