People's Bank Of China

Tyler Durden's picture

Frontrunning: June 26





  • Scalpel in Hand, Chinese Premier Li Stirs Reform Hopes (Reuters)
  • Obama Sets Conditions for Keystone Pipeline Go-Ahead (FT)
  • World’s Most Indebted Households Face Rate Pain (BBG)
  • SAC Probers Weighing 'Willful Blindness' Tack (WSJ)
  • Draghi Says ECB Ready to Act, Calls for Investment Over Tax (BBG)
  • U.S. Tops China for Foreign Investment (WSJ)
  • Basel Presses Ahead With Plans to Limit Bank Borrowing (FT)
  • Gillard Ousted as Australia PM by Rival Rudd (FT)
  • Japan Economic Strength Will Show in Stocks, Nishimura Says (BBG)
 
Tyler Durden's picture

China Is Now More Capitalist Than The US: Main Communist Mouthpiece Says Bailouts Are Bad





Given the earlier rumors of PBOC bailing out the funding markets (followed rapidly by their actual denial/explanation of what is going on which is much less supportive than an exuberantly bouncing market implies), it is perhaps ironic that the nation's government mouthpiece - The People's Daily - explains that help is not coming:

A bailout of the stock market is not beneficial to the development of a sound capital market, although some analysts are suggesting the China Securities Regulatory Commission and the People's Bank of China should intervene

Indeed; it seems the Communist party did learn something about the failures of the US' version of Capitalism and the snowballing impacts of bailout-based unintended consequences.

 
Tyler Durden's picture

Frontrunning: June 25





  • Here come the rolling blackouts: Obama takes on power plant emissions as part of climate plan (Reuters)
  • Walking Back Bernanke Wished on Too Much Information (BBG)
  • As previewed last week: Bridgewater "All Weather" is Mostly Cloudy, down 8% YTD (Reuters)
  • U.S. Said to Explore Possible China Role in Snowden Leaks (BBG)
  • Coeure Says No Doubt ECB Loose Monetary Policy Exit Distant (Bloomberg)... so a "recovery", but not at all
  • U.S. steps up pressure on Russia as Snowden stays free (Reuters)
  • Texas' Next Big Oil Rush: New Pipelines Ferrying Landlocked Crude Expected to Boost Gulf Coast Refiners (WSJ)
  • Singapore Offsets Bankers as Vacancies Fall (BBG)
  • Asian Stocks Fall as China Sinks Deeper Into Bear Market (BBG), European Stocks Rally With Bonds as Metals Advance (BBG)
  • Qatar emir hands power to son, no word on prime minister (Reuters)
 
Pivotfarm's picture

Chinese Banks Ready to Go Bust





Dive! Take cover! Or, at least, hold on to your pants in the scramble. The Chinese bubble has just burst. It looks like the world is going to have egg on its face and elsewhere as Chinese banks are scrambling to get the hands on cash.

 
Tyler Durden's picture

Frontrunning: June 17





  • Obama prepares for chilly talks with Putin over Syria (Reuters)
  • G8 opens amid dispute on Syria arms (FT)
  • Economists Blame Fed for Higher Bond Yields (WSJ) - wait... what? Isn't the "stronger economy" to blame?
  • What a novel concept - In the Czech Republic, a spying scandal has forced the PM to resign (BBG)
  • Rigged-Benchmark Probes Proliferate From Singapore to UK (BBG)
  • Economists Wary as Fed's Next Forecast Looms  (Hilsenleak)
  • Banks Balk at New Rules for Small Loans (WSJ)
  • Sporadic clashes in Turkey as Erdogan asserts authority (Reuters)
 
Tyler Durden's picture

Frontrunning: June 13





  • Global shares pummeled, dollar slumps as rout gathers pace (Reuters)
  • Hong Kong to Handle NSA Leaker Extradition Based on Law (BBG)
  • Lululemon chairman sold $50 million in stock before CEO's surprise departure (Reuters)
  • Companies scramble for consumer data (FT)
  • Traders Pay for an Early Peek at Key Data (WSJ)
  • When innovation dies: Apple looking at bigger iPhone screens, multiple colors (Reuters)
  • Washington pushed EU to dilute data protection (FT)
  • Japan-U.S. drill to retake remote island kicks off (Japan Times)
  • EM economies in danger of overheating, World Bank says (FT)
  • Don't forget the Indian crisis: Chidambaram seeks to quell concerns over rupee (FT)
 
Tyler Durden's picture

Bank Of China Close To Responding To Goldbug Prayers On Friday... But Not Yet





Goldbugs the world over may not know it, but the one catalyst they are all waiting for, is for the PBOC to throw in the towel to Bernanke's and Kuroda's liquidity tsunami and join in the global reflation effort. Alas, those hoping the Chinese central bank would do just this on Friday were disappointed. Moments ago the 21st Century Business Herald, via MNI, reported that the People's Bank of China "decided to shelve plans to inject short-term liquidity into the market late Friday because of concerns it would be sending the wrong signal in light of the government's ongoing commitment to its "prudent" monetary policy stance. Rumors hit the market mid-afternoon about an injection in the region of CNY150 bln via the PBOC's rarely-used short-term liquidity operation (SLO) tool. But how much longer can it avoid the inevitable: what happens when overnight loan yields soar to 20% or 30% or more, and when the repo and SHIBOR markets lock up and no overnight unsecured wholesale funding is available? Because when China finally does join what is already an historic liquidity tsunami then deflation will be the last thing the world will have to worry about. In the meantime, we welcome every chance to dollar cost average lower on physical hard assets, the same hard assets that none other than 1 billion concerned Chinese will direct their attention to when inflation makes it long overdue comeback to the world's most populous country.

 
Tyler Durden's picture

They Better Pray There Is No Short Squeeze...





Well, they've finally done it.

As the following chart of the day from Bloomberg shows, as of this week, hedge funds have made "the biggest bet ever" against gold by taking Comex gold shorts to all time highs.

 
Tyler Durden's picture

Frontrunning: May 16





  • As scandals mount, White House springs into damage control (Reuters)
  • Glencore Xstrata chairman ousted in surprise coup (Reuters), former BP CEO Tony Hayward appointed as interim chairman (WSJ)
  • JPMorgan Chase asks Bloomberg for data records (Telegraph)
  • Platts Retains Energy Trader Confidence Amid Price-Fix Probe (BBG)
  • Syrian Internet service comes back online (PCWorld)
  • Japan Q1 growth hits 3.5% on Abe impact although fall in business investment clouds optimism for recovery (FT)
  • Soros Joins Gold-Stake Cuts Before Bear Market Drop (BBG)
  • Factory Ceiling Collapses in Cambodia (WSJ)
  • Sony’s $100 Billion Lost Decade Supports Loeb Breakup (BBG)
  • Snags await favourite for Federal Reserve job (FT)
  • James Bond’s Pinewood Turned Down on $300 Million Plan (BBG)
 
Tyler Durden's picture

The Unintended Consequence Of The Soaring Dollar





It seems the S&P 500's recent strength is somehow comforted by the fact that the USD is riding high on its cleanest dirty shirt meme at 34 month highs but unfortunately for the Chinese (and their practical peg to the USD), things are a little less fun than in the old mercantilist manipulation days. The implicit benefit that dollar flows appear to be getting (via the wealth effect in the US stock market) is not there in China (lower equity ownership); in fact, the rising Yuan is drastically hurting them as despite export orders remaining in growth mode, the China Daily reports that "most exporters in the delta region have told us that the rising yuan value has led to a big profit decline." Of course, the exporters are calling for a weaker Yuan but as the nation struggles with an exploding shadow banking system, bubbles in real estate and credit, and inflation concerns it knows that any implicit effort to weaken the CNY will create a surge in capital inflows and fuel further imbalances. China remains in the middle of the 'currency war'-driven inflation rock and 'sagging growth' hard place; and with two 91-day bill issues in the last week (in addition to repo)  the clear signal (masked by export data fudges) is that China is much more worried about inflation than it is letting on (and has little ability to manage hot money inflows).

 
Tyler Durden's picture

Chinese Trade Data Manipulation: Innocent "Excel Glitch" Or Something Far More Sinister?





All Chinese economic data is manipulated: that much is known. So is its trade data. However, the manipulation has become so grossly evident, some wonder if there is a far bigger problem behind the scenes. Turns out there is: a $60 billion per month "hot capital" inflow problem, and an economy on the very of bursting at the inflationary seams.

 
Tyler Durden's picture

Frontrunning: May 7





  • Microsoft prepares U-turn on Windows 8 (FT), Microsoft admits failure on Windows 8 (MW), After Bumpy Start, Microsoft Rethinks Windows 8 (NYT)
  • China reports four more bird flu deaths, toll rises to 31 (Reuters)
  • Republicans shift stance on US budget (FT)
  • NYC Tallest Condo Corridor Gets New Entrant With Steinway (BBG)
  • U.S. Says China's Government, Military Used Cyberespionage (WSJ)
  • China rejects Pentagon charges of military espionage (Reuters)
  • Bank of China Cuts Off North Korean Bank (WSJ)
  • Libya defense minister quits over siege of ministries by gunmen (Reuters)
  • London Recruiter Says City Job Vacancies Rose 19% (BBG)
  • Colleges Cut Prices by Providing More Financial Aid (WSJ)  or, said otherwise, loans
  • Jeweler agrees to plead guilty in KPMG insider-trading case (LA Times)
 
Tyler Durden's picture

Frontrunning: April 18





  • Apple reportedly stops placing Mac component orders (DigiTimes)
  • Apple Ordered to Remove Obscene Content From China Store (BBG)
  • Texas Ammonia-Plant Blast Kills as Many as 15 People (Reuters)
  • Boston Probe Said Focused on Person Dropping Bag at Site (BBG)
  • The Chinese cold trade war comes come to roost: US becomes Japan’s top export market (FT)
  • Berlusconi, Bersani back Marini in presidential vote (Ansa)
  • German parliament backs Cyprus bailout (Reuters)
  • China Vows Wider Yuan Movement (WSJ)
  • Morgan Stanley Sees Core Earnings Weaken (WSJ)
  • Gold Miners Lose $169 Billion as Price Slump Adds ETF Pain (BBG)
  • G-20 Draft Affirms Pledge to Avoid Competitive Devaluations (BBG)
  • IMF warns on risks of excessive easing (FT)
  • The battle for the Swiss soul (Reuters)
 
Tyler Durden's picture

China Takes Another Stab At The Dollar, Launches Currency Swap Line With France





One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that "Australia And China will Enable Direct Currency Convertibility", which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees", and "The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap", China has now launched yet another feeler to see what the apetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, "France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London." As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR's turn.

 
Tyler Durden's picture

"Livid" Top Chinese Economists Call BOJ Decision "Monetary Blackmail", Demand "Currency War" Retaliation





The Chinese Central Bank has so far stoically endured the monthly injection of $85 billion in boiling hot money for the past seven months, lovingly delivered by the inhabitants of the Marriner Eccles building, even if it meant a proportionate hawkish response which has pushed the Shanghai Composite red for the year, and having to deal with a property market that is on the verge of another inflationary blow off top. But while the PBOC will grudgingly take this kind of monetary abuse from Bernanke, now that it has to deal with another de novo created $70+ billion in monthly central bank liquidity (poetically called Carry-O-QE by Deutsche's Jim Reid), this time coming from that loathed neighbor and one time invader across the East China Sea, China won't take it any more. As the SCMP reports, "Many of China's top economists are livid at what they view as an effective currency devaluation by Japan and are calling on the People's Bank of China to retaliate by weakening the yuan to defend itself in what they see as a new currency war." 

 
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