Is The China Bank Run Beginning? Farmers Co-Op Unable To Pay Depositors

Tyler Durden's picture


While most of the attention in the Chinese shadow banking system is focused on the Credit Equals Gold #1 Trust's default, as we first brought to investors' attention here, and the PBOC has thrown nearly CNY 400 billion at the market in the last few days, there appears to be a bigger problem brewing. As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks. "Everyone wants to borrow and no one wants to save," warned one 'salesperson', "and loan repayments are difficult to recover." There is "no money" and the doors are locked.

The locked doors of one farmers' co-op...


Via China CNR,

Shadow Banking has grown remarkably... recent years, opened dozens of Yancheng local "farmers mutual funds Society", these cooperatives approved the establishment by the competent local agriculture, and received by the local Civil Affairs Bureau issued a "certificate of registration of private non-enterprise units."

As savers are promised big returns...

Deposit-taking and lending by cooperatives operated operation, and to promise savers, depositors after maturity deposits not only can get the interest, you can also get bonuses.

But recently things have turned around...

However, beginning in early 2013, Yancheng City Pavilion Lakes region continue to have a number of co-op money people to empty, many savers deposits can not be cashed, thus many people's lives into a corner.


Dong-farmers in Salt Lake Pavilion mutual funds club, a duty officer's office, told reporters, because many people take money, put out loans difficult to recover, leading to funding strand breaks.

Rough Google Translation:

Salesperson: ...the money has been slowly falling and in the end is difficult to ask for money, right? And now there is no money coming in, now people don't want to save money, and take all the money.


Reporter: But it's their money, they should be able to...


Salesperson: I know I should [given them money]; however, when the turn started, their is no money, we get cut off and lenders and borrowers took off...

One depositor blames the government (for false promises):

The bank has a deposit-taking his staff, he would say that he is a government action that has the government's official seal, to give you some interest, as well as the appropriate dividends, because we believe that the government, so we fully believe him , we put the money lost inside, who thought in November, Xi Chu who told us that something was wrong.

But don't worry - this should all be settled by 2016...

Yu Long Zhang: we put all of his certificates of deposit are received out. You are only responsible for the loan out of the money back to the people against. The people's money has been invested in other projects go, we have to be tracked to ensure no loss of capital assets, can dispose of his assets disposed of, can recover quickly come back.


Reporter: There is a specific timetable yet?


Yu Long Zhuang: 2014 cashing out the entire program.


Reporter: When did all of these things can be properly resolved?


Yu Long Zhuang: the latest is 2015, 2015, all settled.

So, for the Chinese, their bank deposits have suddenly become highly risky 2 year bonds...

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Thu, 01/23/2014 - 13:32 | 4359386 Hippocratic Oaf
Hippocratic Oaf's picture

Move Coin Now!

Wi Tu Pur

Thu, 01/23/2014 - 13:35 | 4359399 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Sorry folks, the money is gone. The Chairman says thank you for the yacht though.

Thu, 01/23/2014 - 13:37 | 4359414 idea_hamster
idea_hamster's picture

Reporter: When did all of these things can be properly resolved?

Yu Long Zhuang: the latest is 2015, 2015, all settled.



Chinese farmer:  Whew – good thing I wasn’t planning to do anything that requires money like seeding my farm or eating for the next year.  Wait...wut?

Thu, 01/23/2014 - 13:43 | 4359424 Looney
Looney's picture

Yu Long Zhuang... Xi Jinping... Ding Ding Dong...  ;-)


Thu, 01/23/2014 - 14:04 | 4359530 El Vaquero
El Vaquero's picture

Ohhhh, you touch my tralala...

Thu, 01/23/2014 - 15:07 | 4359781 ZerOhead
ZerOhead's picture

It's a good thing the Chinese are confusing Cyprus troubles with Miley Cyprus troubles or a general panic would have already occurred...

Thu, 01/23/2014 - 15:12 | 4359810 El Vaquero
El Vaquero's picture

Wait, I'm confused here.  So, the Chinese are entertained by Miley Cyprus and thus are calm, right?  I guess my real question is this:  Should I be long Dong-Farmers? 

Thu, 01/23/2014 - 16:35 | 4360098 zaphod
zaphod's picture

Yawn, a bank run is when people flock to the bank for paper currency thinking that that will protect them.

Wake me up when the gold run starts and people flock to banks to trade that paper currency in for something real.

Thu, 01/23/2014 - 16:51 | 4360149 DoChenRollingBearing
DoChenRollingBearing's picture

With all this financial institutional weakness there, even more Chinese may start buying gold.  I would advise you not to nap unless you are pretty much all set up with your own gold.

Then sleep easy!  :)

Thu, 01/23/2014 - 19:46 | 4360721 johngaltfla
johngaltfla's picture

Chinese Communist Party Spokeman Chu Mi Goo said that that is the price of capitalism and if anyone wanted to get upset they will be provided with a form to file a complaint then promptly shot.

Thu, 01/23/2014 - 16:54 | 4360160 Manthong
Manthong's picture

ASK  for your deposit (unsecured, ZIRP loan) back..

..coming to a TBTF bank near you soon.


Thu, 01/23/2014 - 17:27 | 4360267 BuddyEffed
BuddyEffed's picture

As long as they beat you to the store before the shelves are empty, what difference gold or paper?

Thu, 01/23/2014 - 15:12 | 4359818 kralizec
kralizec's picture

Heh.  Perhaps they more in tune than we thought?

"Everyone wants to borrow and no one wants to save,"

Ho Li Fuk, welcome to Amerika little yellow bitchez!

Thu, 01/23/2014 - 15:09 | 4359799 Almost Solvent
Almost Solvent's picture

Doesn't anyone watch It's A Wonderful Life over there????


George Bailey has invested in YOU AND YOUR NEIGHBORS!

Thu, 01/23/2014 - 14:08 | 4359560 CheapBastard
CheapBastard's picture

Gotta love those "No Credit Check, Low Interest, Never Pay Back Loans" .... sorta like the ones we have here for houses....

Thu, 01/23/2014 - 18:07 | 4360399 mt paul
mt paul's picture

or the ones we have for treasuries ..

Thu, 01/23/2014 - 13:59 | 4359508 G.O.O.D
G.O.O.D's picture

Time for some starvation bitchez..its whats for dinner.

Thu, 01/23/2014 - 17:07 | 4360207 ATM
ATM's picture

No need to wowwy. Wickshaws fuww of cash is on way to bad bank. Make all peeples happy.

Thu, 01/23/2014 - 14:09 | 4359556 ILLILLILLI
Thu, 01/23/2014 - 17:08 | 4360208 ATM
ATM's picture

A fucking classic.

I played that to a room full of financial adisors and they hit the floor.

Thu, 01/23/2014 - 17:58 | 4360363 caShOnlY
caShOnlY's picture

Sorry folks, the money is gone.

china will blame US money printing.  US blames china currency practices.  China launches retaking of Senakaku islands, then Philippino islands.  US intervenes, with military.  China responds with USTs dumped on markets.  Global markets, currencies, economies collapse.

WWIII is about to be written into the history books, Krugman gets his wish.  Krugan eventually gets fried by nuke in NYC apt. His death  is called "ironic ending" to an economist who felt war was good for economy.   Very good ending to moron who didn't have a clue but did have a degree.


Thu, 01/23/2014 - 19:45 | 4360717 Almost Solvent
Almost Solvent's picture

California would make such an easier target for China's ICBMs

Thu, 01/23/2014 - 19:58 | 4360761 clooney_art
clooney_art's picture

Is it a bank though ? The name sounds like a law firm.

Thu, 01/23/2014 - 23:02 | 4361381 Buck Johnson
Buck Johnson's picture

Everybody is getting out of dodge and taking as much of the banks wealth with them.

Thu, 01/23/2014 - 13:37 | 4359415 THECOMINGDEPRESSION

They probably should have been in bitcoins instead of the banks. Free bitcoins here if you have a bitcoin wallet:

Thu, 01/23/2014 - 13:57 | 4359496 THECOMINGDEPRESSION

Whats with the negatives? Its true, its free and you need no money. The Chinese are eating this site up..North Americans wouldn't know a freebee from a dollar bill

Thu, 01/23/2014 - 14:08 | 4359557 Mercuryquicksilver
Mercuryquicksilver's picture

Because Fuck You.

Thu, 01/23/2014 - 14:52 | 4359723 Levadiakos
Levadiakos's picture

Aww. Seems like you picked a bad day to wear see through tights

Thu, 01/23/2014 - 15:14 | 4359819 Loose Caboose
Loose Caboose's picture

Yes, like the man in the cellophane pants - we can clearly see you're nuts.

Thu, 01/23/2014 - 15:16 | 4359826 Citxmech
Citxmech's picture

Any service or product provided for "free" means we are the product.

Thu, 01/23/2014 - 18:08 | 4360401 SDShack
SDShack's picture

Tuesday is Soylent Green day...

Thu, 01/23/2014 - 16:45 | 4360135 teolawki
teolawki's picture

"Because Fuck You."

And the 2BitChitCoin he rode in on.

Thu, 01/23/2014 - 14:20 | 4359603 jcaz
jcaz's picture

....Because your dewsh-iness requires a reward.....

Go back to the Yahoo boards,  fucktard.

Thu, 01/23/2014 - 14:36 | 4359658 madtechnician
madtechnician's picture

Don't take it personally , they don't understand bitcoin so they attack it at every possible opportunity , quite normal human behavoir for the less intelligent members of the species.

Thu, 01/23/2014 - 15:04 | 4359773 NoDebt
NoDebt's picture

We understand BitCoin just fine.  We also understand what it means when somebody comes here to shill for their crappy rip-off webside.  

And yes, you should take it personally because that's how it was meant.

Thu, 01/23/2014 - 15:16 | 4359825 superflex
superflex's picture

Welcome to Fight Club.

If you cant take the heat, go back to with the 11 other muppets who follow their propaganda.


Thu, 01/23/2014 - 15:20 | 4359842 madtechnician
madtechnician's picture

Hey fucktard , how do you know when your bitch has been swallowing too many hormone pills ?

Her beard tickles you on the back of your kneck when she's fucking you up the ass with her clitoris.

Fight Club - Bring it on.

Thu, 01/23/2014 - 16:00 | 4359983 gmrpeabody
gmrpeabody's picture

Wow..., do you use that same mouth to eat?

Thu, 01/23/2014 - 16:16 | 4360031 Oldballplayer
Oldballplayer's picture

I have a beard too.  So when I get together with your beyatch, we make sparks. 

Thu, 01/23/2014 - 16:35 | 4360100 dogmete
dogmete's picture

Further proof that humans should not reproduce.

Thu, 01/23/2014 - 17:58 | 4360359 mick_richfield
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We're working on that.

Thu, 01/23/2014 - 15:42 | 4359925 Levadiakos
Levadiakos's picture

Free Beiber!!

Thu, 01/23/2014 - 16:20 | 4360042 Pool Shark
Pool Shark's picture





[are you sure it's free?...]


Thu, 01/23/2014 - 18:10 | 4360404 SDShack
SDShack's picture

"What's a Beiber?"

Thu, 01/23/2014 - 19:56 | 4360757 TheReplacement
TheReplacement's picture

Save beaver with a cold.  Can't be good if it's free.

Thu, 01/23/2014 - 19:56 | 4360754 TheReplacement
TheReplacement's picture

Free beer?

Thu, 01/23/2014 - 17:40 | 4360300 tradebot
tradebot's picture

Bitcoin will go kaput...just like facebook will soon...remember myspace?  Peak, decline then kaput.  They joke about fiat currencies...the very thing they are backed by.  Really?

Thu, 01/23/2014 - 19:08 | 4360601 madtechnician
madtechnician's picture

Yeah Yeah Yawn , was hearing exactly that in 2009 , 2010 , 2011 , 2012 , 2013 , oh wait ......

Thu, 01/23/2014 - 16:51 | 4360154 John_Coltrane
John_Coltrane's picture

If it sound too good to be true ...

Well, we all know the rest and so should the Chinese.

Thu, 01/23/2014 - 20:19 | 4360813 caShOnlY
caShOnlY's picture

They probably should have been in bitcoins

Fuck your fucking bitcoins you fucking moron.  Do you really think they are manipulating gold like hell to allow another "unregulated" currency to live?  DIGITAL = FIAT, asshole.   BITCOIN = Central Banks.    

Tell me something, moron:  Why did they take down the guy who made PHYSICAL BITCOINS with the code encrypted inside, but allow the digital version to be used freely in trade?   (answer for asshole bitcoin salesman below)







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