After Tumbling At Open, Chinese Stocks Erase All Losses

"Someone" stepped in and bid the entire Chinese market higher off its huge opening gap down...

Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.

First: PBOC devalues the Yuan fix by the most in 2 months...

Offshore Yuan continues to collapse and remains over 1000 pips cheap to onshore Yuan...

Despite the biggest liquidity injection in 4 months

The People’s Bank of China will inject 130b yuan into the banking system using 7-day reverse repurchase agreements today, according to two traders at primary dealers required to bid at the auctions.

Amount injected in operation today is most since Sept. 8

and all of this has left Chinese stocks plunging....