China Burns Hedge Funds as $562 Million Yuan Bet Turns Worthless

[Abacin]

Seven months after a shock devaluation spurred hedge funds and other speculators to wager on further declines, the yuan’s unexpected resilience has turned many of those bets into losers. At least $562 million of options that pay out if the currency drops below 6.6 per dollar -- its weakest point since the devaluation -- have expired worthless since August. Another $807 million will lapse within three months.
China Burns Hedge Funds as $562 Million Yuan Bet Turns Worthless - Bloomberg Business

 

[Immortan.Joe]

What kind of idiot would wager against Yuan???

I mean it is not a floating currency-which means that its value is dependent on government's will and ability to absorb shocks- something which should not be wagered against.

Idiotic hedge funds made bet against a pegged currency. Now they should pay for it.

 

[Beast]

What kind of idiot would wager against Yuan???

I mean it is not a floating currency-which means that its value is dependent on government's will and ability to absorb shocks- something which should not be wagered against.

Idiotic hedge funds made bet against a pegged currency. Now they should pay for it.

You are indeed correct! China has USD 3.9 trillion foreign reserves and which fund manager has more money than this?