Bitter annotations were unleashed against George Soros and some currency traders by the Chinese state media following the immense pressure that the Chinese yuan was under. The Chinese media alleged that George Soros was declaring war on the currency. George Soros made a statement at the annual World Economic Forum which took place in Davos telling Bloomberg TV that Chinas economy was doomed and headed for a collapse; he added that the economic growth of China had declined to a 25-year low based on official figures, Soros insinuated that a hard landing was inevitable for China.
The Billionaire currency trader has been accused for contributing to the Asian financial crisis in 1997; his trades are still blamed in several countries. George Soros claimed that excessive debt and deflation were the major causes of China’s economic go slow. The Chinese Yuan has an incredible history of being stable; it’s value is often monitored by Beijing; the currency had come under pressure at the beginning of this year in capital outflows and the overseas markets. The Chinese authorities incurred billions of dollars as they tried to defend the currency.
In a statement that had been made by China’s official Xinhua news agency; George Soros had predicted the economic downfall for the Chinese currency in the past. The News Agency said that the short-sellers had refused to discharge their duties or maybe they were intentionally trying to panic and in the process, make spontaneous profits.
The 85-year-old currency trader, George Soros had been accused of publicly declaring war on China and taking a position against the Asian currencies; this story was widely shared in the Chinese media after having been featured in the overseas edition of the People’s daily.
The vital question that bothered many readers was whether Chinese investors would fear due to the rhetoric allegations. On social media networks, such as Weibo, posters circulated with one saying that there were numerous slogan out there from the official media but hardly do they know that Chinese investors are in hell. In a move to defend the pound’s exchange rate peg, George Soros led speculators to bet against the Bank of England.
George Soros had raised his concerns over China having changed its growth model from relying on exports to consumer modeled despite Beijing’s ability to manage the transition due to the currency reserves which stood at US $ 3tn.