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Is it a coincidence that China decided to devalue its currency, the yuan, just a few weeks after its stock market crashed?

Dan David doesn’t think so. Cofounder of GeoInvesting, a research and investment advisory firm based in Skippack, he is a longtime money manager with China-based portfolio holdings, and he employs a team of researchers there.

David spoke on a panel a month ago and warned that currency devaluation was the Chinese government’s next logical step after its stock market collapse.

“They didn’t just halt trading on more than half the companies on the A-share market. They stopped major holders from selling. If you’re a 5 percent holder [in a public company], you can’t sell for six months,” he says. “They banned short-selling.”

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