, Columnist
Kyle Bass Was Right to Exit His Yuan Short
China’s central bank has learned how to make life painful for bears.
Not extinct, just in hiding.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
It may seem like a strange time for hedge fund manager Kyle Bass to exit his short bet against the offshore yuan – just as the trade looks to have a chance of becoming seriously profitable.
Almost four years after the long-time China bear made the wager, the currency is under increasing pressure amid a worsening trade conflict. If nothing else, fears of a global economic slowdown are giving traders a reason to flee to the haven of the dollar. That points to further weakness in emerging-market currencies, the yuan included.