AsiaPac stocks are extending losses in early trading asit appears our fears about the Chinese coporate bond market bubble are also on the minds of Chinese regulators as they look to "boost reforms." After the PBOC has fixed the Yuan stronger for 8 straight days, the onshore and offshore Yuan has weakened appreciably in the last 24 hours and PBOC has devalued Yuan by 177pips - the biggest in 2 months (as PBOC researchers push to "speed up Yuan internationalization" and implicitly inclusion in the SDR basket). Gold jumped on the Yuan devaluation... AsiaPac stocks are lower again... *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.5% TO 3,400 *MSCI ASIA PACIFIC INDEX DROPS 1.4%, EXTENDING DECLINE As fears rise of a bubble in Chinese corporate bonds... Reform it! *CHINA TO BOOST CORPORATE BOND MARKET REFORM: 21ST HERALD Good luck, as Commerzbank's Zhou concludes... "Global investors are looking for signs of a collapse in China, which itself could increase the chances of a crash... This game can’t go on forever." * * * The Yuan has been 'fixed' stronger for 8 straight days... but tonight PBOC devalues Yuan by 177pips - the most in 2 months *CHINA SETS YUAN REFERENCE RATE AT 6.3408 AGAINST U.S. DOLLAR *CHINA WEAKENS YUAN FIXING MOST SINCE AUG. 13 And PBOC reseeacrhers are pushing for rapid internationalization of Yuan (and inclusion in the SDR basket)... beginning their paper with the rather USD reserve Currency Status challenging statement: World History tells us that economic power is necessarily financial power, only to become the financial powerhouse before it can become an economic power. China must speed up yuan internationalization to develop the finance industry, PBOC research bureau head Lu Lei writes in People’s Daily. The yuan needs to be included in the SDR basket, Lu writes China’s current financial structure is dominated by indirect financing and doesn’t make enough sense, Lu writes China should further improve stock market and increase the proportion of equity financing, Lu writes Financial power is the inevitable direction of sustainable development of economic power Charts: Bloomberg