All because China only has one policy tool left, currency devaluation. Every time risk assets rally, they resume Yuan devaluation. They've only contributed to two global asset crashes so far...
This is why Janet Yellen met with Obama last week and overruled the hawks at the last Fed meeting. This came out last night:
"We have very good communication with the Federal Reserve"
"China's vice finance minister has praised Federal Reserve Chair Janet Yellen for her clear communication to financial markets and G20 partners and her cautious approach, telling CNBC that the mainland is hoping Fed policy will have a positive impact on its economy."
"We found the Federal Reserve very cautious in their process and (it) takes us into consideration,"
"Yellen's dovishness gives China breathing room to progress on its economic and currency reforms."
Yuan with S&P:
