China's Holiday Week Only Gets Worse as Stocks Slump With Yuan

  • Hang Seng Index suffers biggest three-day loss since February
  • Currency weakens beyond key support of 6.9 per greenback
Sean Darby of Jefferies talks about Hong Kong, China, and Japanese stocks.(Source: Bloomberg)
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Financial markets are closed all week in China, but across the border in Hong Kong, things are getting ugly.

The benchmark Hang Seng Index slid 1.7 percent Thursday, taking its three-day loss to 4.2 percent, the worst since February. The offshore yuanBloomberg Terminal weakened beyond its support level of 6.9 per dollar, while surging Treasury yieldsBloomberg Terminal signal pressure on Chinese government debt when trading resumes next week.