The PBOC set the Yuan fix 0.08% stronger - the biggest 'strengthening in 2 months, which is interesting because following The IMF's confirmation of a delay to Yuan inclusion in the SDR basket to Oct 2016 (pending a year-end decision and aksing for more flexibility), Offshore Yuan forwards notably devalued (shifting 350pips higher to 6.65, the highest/weakest Yuan in a week) pricing a 20 handle (or 3%) devaluation by August 2016. Overnight saw another CNY110bn liquidity injection rescue from The PPT in the afternoon session (saving SHCOMP from a close below the 200DMA) and tonight we see promise to recap Ag Bank along with another CNY 120bn reverse repo injection. Shanghai margin debt declined for a 2nd day in a row and Chinese stocks look set to open weaker. Offshore Yuan forwards point to further devaluation to come... But The PBOC strengthened The FIx.. *PBOC YUAN FIXING RISES 0.08%, THE MOST IN MORE THAN TWO MONTHS *CHINA SETS YUAN REFERENCE RATE AT 6.3915 AGAINST U.S. DOLLAR More focused liquidity injections today... *PBOC TO REPLENISH CAPITAL OF AG DEVELOPMENT BANK: CHINA NEWS But overnight saw another large liquidity injection... The People's Bank of China intervened in the interbank market for a second time this week on Wednesday, pumping in 110 billion yuan through open market operations to steady interbank rates that have been shooting up as investors pull out of the yuan. The PBOC confirmed after the market close that it injected 110 billion yuan to 14 financial institutions for a period of 6 months at a rate of 3.35 per cent. This followed an injection on Tuesday when it added 120 billion yuan in repurchase agreements to the market. The back-to-back cash injections came a week after the central bank allowed the yuan to devalue by more than 3 per cent over a three-day period, sparking concerns over capital outflow. Last night's injection save stocks from a close below the 200DMA... And today looks set to open weaker *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1% TO 3,848.40 *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1% TO 3,754.57 Despite another massive liquidity injection: *PBOC TO INJECT 120B YUAN WITH 7-DAY REVERSE REPOS: TRADER 3,650 is today's level to worry about today in the Shanghai Composite Commodity firms getting hammered: *GLENCORE SHARES FALL 5.8% TO HK$19.60 IN HONG KONG *NOBLE GROUP SHARES FALL 1.2% AT OPEN IN SINGAPORE As Margin debt declined for 2nd day in a row... Outstanding balance of Shanghai margin lending fell by 0.5%, or 4.5b yuan, from previous day to 875.4b yuan on Wed., according to exchange data. Well it seems The PBOC has a different problem than wanting to devalue to save its 'exports'... the massive liwquidty injection suggest the country has a dollar 'run' after all. Charts: Bloomberg