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The Why and Yuan
China's markets re-open on Tuesday as the Lunar New Year celebration ends. Hong Kong markets re-opened on Monday, and Chinese shares that trade there fell. The Hang Seng China Enterprise Index (H-shares) fell 0.2%. Local reports suggested profit-taking after the run-up before the holiday amid light volume was the main driver, though the drop in oil weighed on Chinese energy companies that trade in Hong Kong. There is some rumblings in the media, which remains fascinated by the "currency war" meme, and among some analysts that see "currency wars" everywhere, that China may seek a weaker currency as it wrestles with its ... (full story)