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Why China Tech Stocks Are Splitting From the Yuan
Season 1
Episode 11
Published 1 month, 1 week ago
Description
China's yuan is near multi-year lows against the dollar, yet Chinese tech stocks like Alibaba and Baidu are falling even faster. In this episode, Lucas and Luna explore a surprising decoupling: the yuan is weak because China wants it weak to support exports, but U.S.-listed Chinese stocks are selling off on regulatory fears and a domestic growth slowdown. They break down the KWEB ETF's 4.1% weekly drop, Baidu's 7.2% slide, and NIO's 11.6% plunge — and ask whether the old 'yuan down, stocks up' trade is broken for good. Plus, a quick look at how the bond market's rally tells a different story about where investors are hiding.