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Why China Stocks Are Falling Faster Than the Yuan
Season 1
Episode 33
Published 4 weeks, 1 day ago
Description
On June 5, 2026, China ETFs like FXI and KWEB are down sharply even as the yuan stabilizes near 6.77 per dollar. Lucas and Luna dissect the divergence: U.S. chip tariffs, a hot jobs report pushing Fed cuts further out, and why Chinese tech—especially Baidu and NIO—is getting hit harder than the currency. They also look at the trade data: exports of goods and services hit $3.5 trillion this year, but the trade balance is shrinking because imports are growing faster. The hosts argue that the yuan's resilience masks a real economy slowdown, and that investors are pricing in a prolonged trade war. The episode includes a brief, natural donation mention supporting ad-free economics coverage.