Kyle Bass Sees Potential China-U.S. Currency Pact as Just a Big Yuan Short
- China will break any FX pledge if reserves drift too low: Bass
- Hayman Capital holds position in face of strengthening yuan
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The “strongest ever” currency deal, as U.S. Treasury Secretary Steven Mnuchin has dubbed it, hasn’t shaken the resolve of longtime China bear Kyle Bass.
Any provision for China to keep its currency stable as part of a trade agreement that’s in the works will fail to support the yuan against the dollar, according to the Hayman Capital Management founder. The firm entered its short bet on the offshore yuan in 2015. And Bass is staying the course even as some Wall Street banks revise forecasts to predict strength in the Chinese currency, which is outperforming almost all its counterparts across Asia in 2019.