Chinese Bank Bailed Out Through PBOC "Targeted Liquidity Operation" Amidst Liquidity Crunch

Tyler Durden's picture

It was only a matter of time before at least one Chinese bank (and then many more) needing to rollover overnight/short-term funding and unable to do so in an interbank market that is now completely frozen, had to be bailed out. Sure enough, according to Hao Hong, the chief China strategist at Bank of Communications Co., who cited unidentified industry sources, the People’s Bank of China used "targeted liquidity operations" to supply 50b yuan to a bank in China. Bloomberg reports that the overnight cash supplied was at 5.1%, while the 1-week at 5.4%. Hong added that more banks are in talks with PBOC to obtain funds amid a cash squeeze, as expected. The problem is that the PBOC can't continue targeted bail outs, and will sooner or later be forced into a broad liquidity providing move, which will unleash a repeat of the 2011 in China scenario, which did not have a very happy ending.

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Middle_Finger_Market's picture

Its blowing up like I thought it would. 

GetZeeGold's picture



Rip Sim Pickens......adios James Gandolfini. This isn't turning out to be a good day.


Major Kong rides the bomb.


Woke up this morning....


kliguy38's picture

All contrived and the real target is to destroy gold as a "safe haven" ....even the goldbugs don't realize how important the price of PAPER gold is to this ponzi.....getting very close now to a real meltdown for the ponzi.....all stops being pulled out....there is NO physical gold

eddiebe's picture

Really? There is no physical gold? Explain yourself!

kliguy38's picture

I'm German.....perhaps you have not heard we cannot get our gold from your banks for years

AmCockerSpaniel's picture

Your Gold is physically still here. It is just that we (US) have rented and sold it to so many times, and to so many people that we can not get the ownership rolled back very quickly. Only in the US of A. You can trust our people, but not our government (it's not run by Americans these days).

MiltonFriedmansNightmare's picture

Only in the US..and the City, where the rule book, if you can call it that, was written.

GetZeeGold's picture



How much physical gold do you have?

AmCockerSpaniel's picture

He is just talking for himself. This is not a bad time to add some to ones physical.

swissaustrian's picture

Exactly, central planning always fails.

q99x2's picture

At this rate the Chinese TBTF banks could take over the Chinese Government like Goldman Sachs did in the west.

booboo's picture

"From this day forward Happy Endings must be paid for in blood"
Madam Chu Won Tu

Its Only Rock N Roll's picture

The "happy ending" costs an extra $20

Dr. Engali's picture

Hmmm maybe it would be a good idea if they had funded projects that would supply a cash flow instead of building empty cities. Maintenance costs are a bitch when there is no cash to pay for them.

thestarl's picture

And half the shit they've built is so dodgy...standards fucking what standards.

Poor Grogman's picture

All those overseas investments will soon be unwinding, as cash goes home.

Happy real estate flipping Australia...

thestarl's picture

Yep we're gunna cop it down here in Oz to brother.Go short on Fortesque,hey take your pick.You only have to look at some of the halfwits that have been running these companies.

Going Loco's picture

Gold capitulation. My prediction fulfilled (but I was way out with the timing).

Quote: My prediction for gold is [(1923-681)/2]+681 = 1302 within 2 weeks.

New prediction will be posted here on Saturday. I want to see where it closes Friday night.

FD: Bullionvault account all in cash (USD)

BTW if you think this is off-topic you are not paying attention. The world has run out of money.

Monedas's picture

Gold Kaput-Elation:   A transitory sense of well being .... induced by a sell off in Gold .... and the belief .... that you will be able to buy in .... and some day actually take delivery ! 

Monedas's picture

Monedas on Keynes:  "No Pane .... no Gain !"

new game's picture

malinvestment screaming "wheres da money(flow) honey"

ha. bunch of fucking idiots...

hey ho cho minion-tink it time to float your yaun?

send over the PPT - calling shalom?

BurningBetty's picture

Can I get a bailout if I gamble away my cash at the casino? I only need a few million.

YC2's picture

I wish the Chinese govt would supply my bank account w 50b in liquidity! I'm good for it, it's just an overnight liquidity thing... Transitory ...

new game's picture

basket case of phoney growth

"but we got zee gold"

hey ho cho, got some tresuries for sale?

trade ya my gold for those fine investments...

eddiebe's picture

It's deja vu all over again.

kito's picture

Gold getting obliterated folks.....

GetZeeGold's picture



Physical gold acquisition has's a lot easier than confiscation.


Please thank your grandkids for us.....quite literally candy from a baby.

AmCockerSpaniel's picture

It (Gold) will go down in price in one marker, but up in the physical.

Dr. Engali's picture

Really? I just checked my stacks and they are still there.

lakecity55's picture

I just got to the computer after taking off my scuba gear.

I checked, down at the lake, just to be sure, but it's all there, and it is not shrinking.

PMs, that is.

Atlantis Consigliore's picture

PLEASE, New Bernanke, Hitler Video, have Bernanke look CONCERNED.  ....




it figures it be something like this, put on the glasses.

eddiebe's picture

Yup, still got mine, and more is on the way. Looks like a fire-sale going on right this minute.

Too bad Germany can't get theirs, maybe the German public should look into that.

Nue's picture

New Chinese Special TARP Fried Rice.