China's sliding yuan could be next 'black swan event' for markets, hedge fund EDL says

Hedge fund EDL Capital is betting on further falls for China's offshore currency and says the yuan's slide could be the next "black swan event" to rattle world markets, according to an investor presentation this month seen by Reuters. The U.S. dollar has strengthened roughly 6% against the offshore yuan so far this year and Chinese state banks have been seen selling dollars this week to stem the yuan fall. Back swan events refer to unexpected developments with far-reaching consequences. EDL Capital, which manages about $1 billion, said factors weighing on the yuan include geopolitical tensions driving Western countries to…