There were four important developments in China (late last week)

There were four important developments in China (late last week). Firstly, Daiwa Securities called for a 10% decline in the Yuan by the end of 2015, the first time that a major house has acknowledged that China will have to force its currency lower to fight for its survival. Secondly, Nomura, Barclays and Bank of America all lowered their growth profile further on China. Thirdly, the PBOC blocked plans by Tencent and an affiliate of Alibaba to offer virtual credit-cards as the government moves to regulate the online finance industry. Finally, the Chinese solar-panel maker Baoding Tianwei said it will be able to pay interest payments due on its 7-year bond (after) speculation this company would become the second default. Unfortunately this positive news was offset by a story that Haixin Iron and Steel (the second largest steel maker in Shanxi Province) has defaulted on debt. (Source: Rareview Macro)