People's Bank Of China

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." 

 


Tyler Durden's picture

Frontrunning: April 2





  • The revolving door continues: Mary Schapiro joins Promontory Financial (WSJ)
  • First Peek at Health-Law Cost (WSJ)
  • Abe warns over Japan inflation target: warns 2% inflation target may not be reached within two years (FT)
  • BoJ's Kuroda tested by divided board (Reuters)
  • Nanjing poultry butcher fourth person infected with H7N9 bird flu (SCMP)
  • What time do top CEOs wake up? (Guardian)
  • Cyprus Seeks More Time to Meet Targets in Talks With Troika (BBG)
  • Investors Ignore Negativity at Their Peril (WSJ)
  • Apple bows to Chinese pressure (FT)
  • One can only laugh: North Korea to restart nuclear reactor in weapons bid (Reuters)
  • Visa Demand Jumps (WSJ)
  • Bloomberg's refutation of Stockman: yes, yes but... look over there, stocks are up! (BBG)
 


Tyler Durden's picture

Shorting Stocks On These April POMO Days May Be Hazardous To Your Health





It's that time of the month again when, with little fanfare, the NY Fed discreetly discloses on which days of the upcoming month shorting is unadvisable, because on the other end of every sale or short will be none other than Kevin Henry & Co., and some $45 billion in buying power-cum-short stop loss triggers (not to mention every possible Citadel HFT algo operating at a less than arm's length from the Liberty 33 trading desk). In short: we get the advance monthly schedule of POMO days. And as everyone knows, one should never fight the Fed (unless, of course, one is the European Central Bank, the People's Bank of China, the Bank of Japan, the Bank of England, the Swiss National Bank, and pretty much every other central bank now that the entire world has devolved to outright currency warfare, but let's ignore that particular weak link in the media's propaganda narrative for the time being). So how does April look? In short: for anyone seeking to short the market in order to take advantage of the inevitable end of the Fed's despotic central-Ponzi planning regime (for reference, please see Bernie Madoff): not good.

 


Tyler Durden's picture

Frontrunning: March 20





  • Cyprus works on Plan B to stave off bankruptcy (AP)
  • Cyprus seeks Russian bailout aid, EU threatens cutoff (Reuters)
  • Freddie Mac Sues Multiple Banks Over Libor Manipulation (BBG)
  • Bernanke Seen Keeping Up Pace of QE Until Fourth Quarter (Bloomberg)
  • Italian president seeks way out of political stalemate (Reuters)
  • Chinese factories struggle to keep staff (FT)
  • South Korean banks, media report network crash (CBC)
  • BlackBerry Inventor Starts Fund to Make Star Trek Device Reality (Bloomberg)
  • Osborne Should Be Fired, Voters Say in Pre-Budget Poll (Bloomberg)
  • Obama Begins First Visit to Israel as President (WSJ)
  • Anadarko finds ‘potentially giant’ oilfield (FT)
  • Britain's Osborne boxed in by austerity on budget day (Reuters)
  • MF Global reaches agreement with JPMorgan (FT)
 


Sprott Group's picture

China's Gold Reserves: Watch What They Do, Not What They Say





Yi Gang, Vice Governor of the People's Bank of China (PBOC), recently made the headlines with his comments on Chinese gold reserves. On Wednesday, Mr. Yi stated that China's gold reserves remain static at 1,054 tonnes, and suggested that a sizeable increase in those reserves would be unlikely in the future. "We need to take into account both the stability of the market and gold prices," Mr. Yi stated, adding that as the world's largest gold producer and importer, China produces about 400 tonnes of gold annually, and imports an additional 500 to 600 tonnes of gold every year. "Compared with China's 3.3-trillion-U.S.-dollar foreign exchange reserves, the size of the gold market is too small," Yi said, rejecting speculation that China would further diversify its foreign reserve investments into the precious metal. "If the Chinese government were to buy too much gold, gold prices would surge, a scenario that will hurt Chinese consumers ... We can only invest about 1-2 percent of the foreign exchange reserves into gold because the market is too small," Yi stated.

 


Tyler Durden's picture

Frontrunning: March 8





  • Firms Send Record Cash Back to Investors (WSJ)
  • And in totally opposite news, from the same source: Firms Race to Raise Cash (WSJ)
  • China warns over fresh currency tensions (FT)
  • Hollande faces pressure over jobs pledge (FT)
  • Obama efforts renew ‘grand bargain’ hopes (FT)
  • Shirakawa BOJ Expansion Gets No Respect as Stocks Cheer Exit (BBG)
  • Japan’s Nakao Defends Easing as China’s Chen Expresses Concern (BBG)
  • Boeing Had Considered Battery Fire Nearly Impossible, Report Says (WSJ)
  • ECB Chief Plays Down Italy Fears (WSJ)
  • China moves to make its markets credible (FT)
  • Euro Group head says UK at risk of 'sterling crisis' (Telegraph)
 


Tyler Durden's picture

Surge In Chinese Exports "More Curse Than Blessing" SocGen Says





China's trade balance recorded the first February surplus in three years of USD 15.3bn, while forecasters looked for a deficit of -6.9bn. The trade surplus in the first two months was much higher at USD 44.4bn, compared with a deficit of USD 4bn during the same period in 2012, which points to a significant positive contribution from net exports to Q1 GDP growth. However, if these figures were indeed close enough to the actual situation, such strong exports may turn out to be more of a curse than a blessing for China. Against the backdrop of a meagre global recovery and heightened concerns over potential currency wars, China's bi-lateral trade surplus with the US, as suggested by Chinese data, reached a record high in four years; and China snatched market shares from neighbours. None of these will be the most welcomed development. Particularly, there is evidence that the People's Bank of China has been intervening to keep the yuan from appreciating.

 


Tyler Durden's picture

China Central Bank Says It Is "Fully Prepared For Looming Currency War"





Just in case Lagarde (and everyone else except for the Germans, who have a very unpleasant habit of telling the truth), was lying about that whole "no currency war" thing, China is already one step ahead and is fully prepared to roll out its own FX army. According to China Times, "China is fully prepared for a looming currency war should it, though "avoidable," really happen, said China's central bank deputy governor Yi Gang late Friday." We look forward to the female head of the IMF explaining how China is obviously confused and that it is not currency war when one crushes their currency to promote "economic goals." Of course, that same organization may want to read "Zero Sum for Absolute Idiots" because in this globalized economy any attempt to promote demand (by an end consumer who has no incremental income and stagnant cash flow) through currency debasement has no impact when everyone does it. But then again, this is the IMF - the same organization that declared Europe fixed in 2009, 2010, 2011, 2012, 2013 and so on.

 


Tyler Durden's picture

Frontrunning: February 26





  • Italy Political Vacuum to Extend for Weeks as Bargaining Begins (BBG)
  • Italian impasse rekindles eurozone jitters (FT)
  • On Spending Cuts, the Focus Shifts to How, Not If (WSJ)
  • Obama spending cuts strategy focused on waiting game (Reuters)
  • BOE’s Tucker Says He’s Open to Expanding Asset-Purchase Program (BBG)
  • Fed Faces Explaining Billion-Dollar Losses in Stress of QE3 Exit (BBG)
  • Carney warns over lack of trust in banks (FT) - here's a solution: moar bank bailouts!
  • Bundesbank tells France to stick to budget (FT)
  • China to tighten shadow banking rules (FT)
  • Saudis Step Up Help for Rebels in Syria With Croatian Arms (NYT)
  • After election win, Anastasiades faces Cyprus bailout quagmire (Reuters)
  • Just for the headline: Singapore’s Darwinian Budget Sparks Employer Ire (BBG)
 


Asia Confidential's picture

Why A China Crash May Be Imminent





This week's events show that the Chinese government realises that its stimulus efforts have got out of hand and its economy is in trouble.

 


Tyler Durden's picture

Frontrunning: February 22





  • Spain’s Deficit Widened to 10.2% on Bank-Rescue Cost (BBG) - or as Rajoy would say, when one excludes all negatives, it was a surplus
  • Monti Austerity Pushes Italians Toward Parliament Upheaval (BBG)
  • Russia accuses U.S. of double standards over Syria (Reuters)
  • Euro Area to Shrink in 2013 as Unemployment Rises (BBG)
  • UK, China central banks to discuss currency swap line (Reuters)
  • Italy Court Rejects Challenge to Bailout of Monte Paschi (BBG)
  • Japan's Abe to showcase alliance, get Obama to back Abenomics (Reuters)
  • Russia’s missing billions revealed (FT)
  • China Home-Price Gains May Presage Policy Tightening (BBG)
  • Fed unlikely to curtail stimulus despite rising doubts (Reuters)
  • Banks face fines up to 30 per cent of revenues (FT) - just as soon as Basel III is passed (i.e., never)
  • J.C. Penney Can Raise Billions Under Revised Credit Line (BBG)
  • Cost of Dropping Citizenship Keeps U.S. Earners From Exit (BBG)
 


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