Chinese state banks sold dollars to prevent the offshore yuan from falling, as the U.S. currency strengthened 6% this year.

EDL Capital, a $1 billion hedge fund, believes geopolitical concerns will starve China of foreign investment.

China’s labor market is less competitive than Vietnam and India, and post-pandemic recovery has stalled.

EDL’s hedge fund, managed by Swiss-based EDL, has been up 8% this year, focusing on macroeconomic indications.