chinese traderChinese stocks are trading lower again (on margin crackdowns) – the first 3-day drop in 3 weeks – back into the red year-to-date. Despite weakening the fix this evening, the ‘market price’ for USDCNY is trading at a record 1.93% discount to the official rate – inching ever closer to the 2% peg limit. At 6.2522, the market is just 40 pips away from forcing policy makes to intervene (selling the USD and and buying Yuan) – which realistically is perhaps a positive for the Chinese to unload some USD reserves. This move comes as China’s currency overtook Canada’s dollar to rank fifth for global payments last month with a record market share of 2.17% and HSBC this evening forecast the Yuan will overtake the Japanese Yen as Asia’s most-used Global FX in Q2. More