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No, There Is No Stoppage Of Cash Transfers In China

Tyler Durden's picture





 

Earlier today, Forbes managed to spook readers with a bombastic report that China's commercial banks had been instructed by the PBOC to halt cash transfers - something which would have dire implications on China's banking system ahead of its new year holiday, and send the banking system into a tailspin just as China is desperate to avoid all turbulence ahead of a potential shadow banking default.

Leaving aside the fact that one should typically rely on official PBOC advisories, posted quite clearly on its website (where one finds no mention of this notice), one could simply keep track of interbank liquidity indicators such as repo and SHIBOR, both of which dropped, indicating that liquidity actually improved.

Anyway, here is what really happened, as reported by China Compass. "Forbes columnist Gordon Chang claimed in a much-quoted item today that the Peoples Bank of China had instructed commercial banks to halt cash transfers. Chang's column, entitled “China Halts Bank Transfers,” specifically refers to Citibank's Chinese branches. The report is entirely misleading." Our advice - focus on the real "weakest links" in China's banking system, of which there are many and are backed by facts, not the least of which is the potential upcoming shadow banking default. Ignore groundless rumors and speculation.

More from China Compass:

According to Citibank China Customer Service, the bank is conducting a routine system upgrade over the first few days of the upcoming New Year bank holiday. System maintenance of this sort has occurred several times in the past. The PBOC has not—repeat not—asked Citibank to stop customers from wiring funds. Customers can still log on to their account to put in fund transfer requests at any time. The receiving bank (non-Citibank) will process the funds to be transferred on the next business day, as it always does. Because of the Lunar New Year break, the next business day is Friday Feb. 7. This is no different from the practice of banks throughout the world. Chang's understanding of Chinese culture evidently does not extend to the timing of bank holidays.

January 30, 2014 4PM is the afternoon of the Chinese New Year eve. Nobody will be around by 5PM as the Hong Kong stock exchange has a half-day trading day. 

Citibank's customer web site offered the following notice:

Important Notice:
 
1. Due to the system maintenance of People's Bank of China, Domestic RMB Fund Transfer through Citibank (China) Online and Citi Mobile will be delayed during January 30th 2014, 16:00pm to February 2nd 2014, 18:30pm. As to the fund availability at the receiving bank, it depends on the processing requirements and turnaround time of the receiving bank. We apologize for any inconvenience caused.
 
2. During Spring Festival, Foreign Currency Transfer Transaction through Citibank (China) Online and Citi Mobile will be temporally not available from January 30, 2014 18:00pm to February 7, 2014 09:00am. We apologize for any inconvenience caused.
 
If you have any enquiries, please reach us via our 24-hour banking hotline at 800-830-1880 or credit card hotline at 400-821-1880. If you are calling from other parts of the world, please reach us at 86-20-38801267 for banking services or 86-21-38969500 for credit card services.

* * *

All that said, China certainly has all too real liquidity (and solvency) problems - none of which have anything to do with a suicidal act by the PBOC - as explained here extensively in the prior weeks and months, captured best by the fact that both China's and HSBC's CDS are both at multi-month highs.

 


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Sun, 01/26/2014 - 22:41 | Link to Comment ebworthen
ebworthen's picture

The World is one big giant Ponzi scheme.

WTF else do you need to know?

Own physical.

Sun, 01/26/2014 - 22:44 | Link to Comment Renfield
Renfield's picture

You know what's weird? There was another first comment on here before yours. I put a vote on it, then when I refreshed the page, it disappeared. Bizarre.

Sun, 01/26/2014 - 22:44 | Link to Comment DarthVaderMentor
DarthVaderMentor's picture

Disappearing comments like Chinese fiat?

Sun, 01/26/2014 - 23:01 | Link to Comment JLee2027
JLee2027's picture

Actually CB comments can rehypothenticate and vanish on their own.

Sun, 01/26/2014 - 23:22 | Link to Comment SilverIsKing
SilverIsKing's picture

I think it comes down to who opens the reply window first, not who posts first. So if you are first to begin, someone else may finish and post before you and anyone checking will see that as the first post but when the person who first opened their post window saves it, it gets posted in the first position.

This is only my theory since I've seen things move around after-the-fact and it's the only logical conclusion I could come up with.

Mon, 01/27/2014 - 03:30 | Link to Comment Ineverslice
Ineverslice's picture

 

Wati, what...c''mon, what'ss goin on...? wtf?

Mon, 01/27/2014 - 18:26 | Link to Comment OceanX
OceanX's picture

Wecome to the world of database transactions, would you like to delv into to inter-process, programming threads?

Mon, 01/27/2014 - 18:26 | Link to Comment OceanX
OceanX's picture

Wecome to the world of database transactions, would you like to delv into to inter-process, programming threads?

Sun, 01/26/2014 - 22:45 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Saw it too.  It said, "And now ZH is being spoofed?", or words to that effect.  Will this disappear too?

Sun, 01/26/2014 - 22:54 | Link to Comment acetinker
acetinker's picture

Thought i might reply that zh would quarantine a spoofer, as I would in the same instance.  Thought better of it after realizing who I was responding to... wait... what?

Sun, 01/26/2014 - 23:11 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I don't get it.  Who was the spoofer and what was the spoof?  ZH did not post anything about the Chinese bank transfer freeze.  I saw a link to the Forbes story in comments only.

Sun, 01/26/2014 - 23:45 | Link to Comment NoDebt
NoDebt's picture

That's what I saw, too.  I clicked through to the Forbes story based on comments from (numerous) posters inside existing ZH atricles, not from any ZH article directly.

Sun, 01/26/2014 - 23:57 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Makes you wonder who bought this site.

Mon, 01/27/2014 - 00:29 | Link to Comment walküre
walküre's picture

fonestar a.k.a. "satoshi"

Sun, 01/26/2014 - 23:58 | Link to Comment acetinker
acetinker's picture

Goddammit!  I am a liar!  I said I would ignore you.  I can't.  Take a deep breath and realize where you are.  This blog would not exist without considerable effort behind the scenes, and considerable "insider" knowledge of the darker arts of finance, politics and internetdom.

No way any gubmint entity would sanction this heresy.  Thank you, Tyler.

Mon, 01/27/2014 - 00:03 | Link to Comment LetThemEatRand
LetThemEatRand's picture

That was certainly true until recently.  Tone and content have changed markedly as of late.

Mon, 01/27/2014 - 00:17 | Link to Comment acetinker
acetinker's picture

You do realize what you're saying, of course?  The compendium of "truther" resources has been compromised?

Maybe I'm in denial, but I'm not willing to concede just yet.

Mon, 01/27/2014 - 00:23 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I'm still here, hoping.  There are not a lot of decent alternatives (or not any, really), but lately this is like drinking watered down scotch.   Similar taste, but a lot less kick.

Mon, 01/27/2014 - 23:25 | Link to Comment acetinker
acetinker's picture

I'd know watered down scotch, trust me on this.  It may be scotch flavored Kool-Aid, though.  Some (a long time ago) suggested ZH may be a "honey pot", and I can't refute that.

What i want to know is this:  You know I am a liar.  I swore I would never talk to you again.

Do you trust me?

Mon, 01/27/2014 - 12:16 | Link to Comment matrix2012
matrix2012's picture

@ LetThemEatRand

"That was certainly true until recently.  Tone and content have changed markedly as of late."

 

LTER, You phrased it at best the present situation here using the minimum numbers of words :-)

You just pinpointed the not-so-subtle transition of ZH contents... a long-time diligent reader will surely notice them!

Mon, 01/27/2014 - 01:05 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

Did the 'spoofer' eat Boris?

Tue, 01/28/2014 - 21:47 | Link to Comment Rentier88
Rentier88's picture

Was joke on how ZH posted the story and then it was found out to be fake story.

Sun, 01/26/2014 - 23:43 | Link to Comment q99x2
q99x2's picture

Tyler's building an army.

First commentors get drafted and we never hear from them again.

Sun, 01/26/2014 - 23:57 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Operation Mayhem, bitchez.

Mon, 01/27/2014 - 06:50 | Link to Comment StychoKiller
StychoKiller's picture

I don't know what yer typing about!

Tue, 01/28/2014 - 21:47 | Link to Comment Rentier88
Rentier88's picture

Was me, seems admins at ZH don't have sense of humor...they deleted the post and my original account.

Sun, 01/26/2014 - 23:28 | Link to Comment trainhard
trainhard's picture

You mean bullion???

Mon, 01/27/2014 - 06:56 | Link to Comment negative rates
negative rates's picture

When the ending comes would be big help.

Sun, 01/26/2014 - 22:44 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Interesting how the first post about ZH being spoofed went poof. 

If the issue is the upcoming holiday, why is the official notice about system upgrades?

Honest question. 

Sun, 01/26/2014 - 23:32 | Link to Comment Clever Name
Clever Name's picture

I am thoroughly confused.

The PBOC will be conducting maintenance on New Years Eve and New Years Day. Ok...

The banks are closed for the week (thats the implication, right?) so foreign currency transfers cannot take place.

Huh?

 

Why no link to the China Compass story? Trying to track anything down on this leads me in a freaking circle.

I did find this interesting little nugget:

Real Estate Employees Carry Year-End Bonuses in Burlap Sacks

Maybe thats the real reason behind all of this?

Sun, 01/26/2014 - 22:46 | Link to Comment Johnny Cocknballs
Johnny Cocknballs's picture

Gordon Chang didn't know it was Chinese New Year, eh?

Curious.

 

I think you can gauge his expertise via his prior predictions on China.  It's one thing to be a pessimist - it's another thing to simply not know what one is talking about.

 

Sun, 01/26/2014 - 22:46 | Link to Comment The Wisp
The Wisp's picture

Aw man I already fueled up the generators in the  bunker and initiated Plan A Bulk Food Purchases, and now it turn out to be a false alarm...

    Practice, Practice practice...

Sun, 01/26/2014 - 22:58 | Link to Comment Peter Pan
Peter Pan's picture

You reminded me of the time I was in a hurry to get to Covent Gardens for a performance when I was holidaying In London. In the process I got lost and I stopped and asked a street busker with a guitar....

"How do I get to Covent Gardens?

He stopped playing, looked me in the eyes, nodded his head and said,

"Practice man.....practice." and then started playing again.

Mon, 01/27/2014 - 10:14 | Link to Comment gmrpeabody
gmrpeabody's picture

Classic...

Mon, 01/27/2014 - 00:32 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

You continue with the plan.  Making dry runs is part of being prepared.  The dry run allows you to see the shortcomings and improve the plans.

What if the generator didn't work?  Did you put Stabil in the fuel?  What if the fuel was old?  How about the food.  Have you sat down and rehydrated the beans and cooked a meal and stayed for a night yet?

Plan the practice and practice the plan.

Sun, 01/26/2014 - 22:47 | Link to Comment DarthVaderMentor
DarthVaderMentor's picture

The Donglicker at the Dickerforum is calling it the end of the economic world as we knew it. He's dying to say "I told you so" like McHugh............ 

Mon, 01/27/2014 - 00:04 | Link to Comment akak
akak's picture

I BAN YOU!!!

Sun, 01/26/2014 - 22:48 | Link to Comment blindman
blindman's picture

if you like your deposit spoof cancellation
transaction you can keep your deposit spoof cancellation
transaction.

Sun, 01/26/2014 - 22:53 | Link to Comment Little Boomer
Little Boomer's picture

Damn, I just bought 12 gross of tuna cans.

Sun, 01/26/2014 - 23:54 | Link to Comment Spanky
Spanky's picture

Mild to moderate glow. Be careful about looking at others directly. Rads escape most easily thru the eyes. A hard glare is about equvilant to an x-ray with that dose...

Mon, 01/27/2014 - 00:08 | Link to Comment Al Gorerhythm
Mon, 01/27/2014 - 13:11 | Link to Comment matrix2012
matrix2012's picture

Thanks Al Gorerhythm :-)  

btw i like your handle for i'm a "big enthusiast" of that guy promulgating the Global Warming now known as the Climate Change :D

 

Some reader in that link posted as below not long ago:

"I think that all these puppets 'goober-mint' handled..will start (again) print more money like there's no tomorrow. Just take a look at the Granny we have in the FED...

On the other hand, thing are starting to change...it looks like China is going to teach a lesson on a true Austrian Economics approach to the USA...I think that China is not going to neither bail-out nor bail-in his 'Lehman'..."

 

Sun, 01/26/2014 - 22:53 | Link to Comment NoDebt
NoDebt's picture

Wow.  The markets are jumpier than a long-tailed cat in a room full of rocking chairs right now.

The slightest ripple....

Sun, 01/26/2014 - 22:55 | Link to Comment BandGap
BandGap's picture

The slightest perterbation due to a financial anisotropy.

Sun, 01/26/2014 - 23:03 | Link to Comment NoDebt
NoDebt's picture

Agreed.  When you split a piece of wood you do it paralell with it's grain for maximum effect.  The only thing that's spooked markets in any real way since 2008 is the credible fear of bank extinction.  When that pops up, even a whiff of it, the market reaction is orders of magnitude bigger than it is from other threads (like recession, scandals and other common real-world events).

 

Sun, 01/26/2014 - 22:53 | Link to Comment Hulk
Hulk's picture

sigh, financial collapse delayed yet again...

Mon, 01/27/2014 - 02:59 | Link to Comment Skateboarder
Skateboarder's picture

Don't worry, it'll come, Hulk, and people will be like "oh shit, didn't see that coming." And a hell of a lot of us will say "told you so!"

Sun, 01/26/2014 - 22:55 | Link to Comment BrigstockBoy
BrigstockBoy's picture

So possibility of PBOC being suicidal but HSBC wasn't?

Sun, 01/26/2014 - 23:29 | Link to Comment NoDebt
NoDebt's picture

If we have now drilled down to bedrock truth of this whole incident (which I doubt), think about where that leaves us, logically. Who cried wolf?  CitiBank.  Their stated policy is in place, blaming PBOC decrees.  Yet PBOC says they have no idea what Citi is all excited about.

Something broke inside HSBC, whether it was their balance sheet or just their sanity, something broke.  Maybe something broke inside Citi as well?

Just remember- never one roach.

Sun, 01/26/2014 - 23:47 | Link to Comment Clever Name
Clever Name's picture

Scrambling to rearrange the deck chairs, while the band plays on?

If we take all this 'official' explanation at face value, they are blaming Chang for misinterpreting the whole situation.

Until we get it all straightened out, lets all speculate our a**es off! Woo hoo!

Sun, 01/26/2014 - 22:55 | Link to Comment Possible Impact
Possible Impact's picture

Is this like SouthPark?

Spoof, and it's gone...

And it's gone (original)

http://www.youtube.com/watch?v=-DT7bX-B1Mg

 

Sun, 01/26/2014 - 22:56 | Link to Comment stant
stant's picture

well like i said before bull shit gets called out quick on zh. thanks tylers

Sun, 01/26/2014 - 22:59 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Where did you say that before?  Perhaps I missed it along with many of the other poster handles on this thread.  I'll take off my tinfoil hat when I see some links.

Sun, 01/26/2014 - 23:41 | Link to Comment Clever Name
Clever Name's picture

Not that you owe anyone an explanation, but what am I missing here LTER? Is it the fact that hes been a member for over two years but only started posting in Sept 13?

I was a lurker for a while before I signed up (year and some ago) but dont post much because honestly, I'm an idiot compared to all the commenters that I originally used to read when I found this site. I'll agree with your post a week or so ago about this being a financial site, which is why I started reading/posting also, and it not being the same. That said, I couldnt do without it!

Didnt down you. (why do people even say that, isnt this Fight Club?)

Sun, 01/26/2014 - 22:59 | Link to Comment Yen Cross
Yen Cross's picture

 It's chop/suey.  BTW, I'm running Linux/ubuntu > Zorin-7.

  Ying-Yang is awesome! That Zorin idea was great!  Thanks<>

Sun, 01/26/2014 - 23:01 | Link to Comment Jam
Jam's picture

Forbes columnist Gordon Chang, maybe he is really Gordon Changstein.

http://www.youtube.com/watch?v=CsKpShq2X6s

 

Mon, 01/27/2014 - 12:32 | Link to Comment matrix2012
matrix2012's picture

Jam, i must say that the short video "Donna Chang - you're not Chinese!" is pretty funny, amusing... lol

As about Gordon Chang, he definitely has an Asian look, though i won't speculate about his root and frankly i won't bother to search further either  - just see here: http://www.forbes.com/sites/gordonchang/

 

Sun, 01/26/2014 - 23:05 | Link to Comment GrinandBearit
GrinandBearit's picture

Knew is was BS... the futures market would have reflected it. 

ES futures are up +5 handles now. 

Sun, 01/26/2014 - 23:10 | Link to Comment LetThemEatRand
LetThemEatRand's picture

LetMeJoinTheEverythingIsFinePartyOnThisThread -- everything is fine.  

Maybe it is, but this thread smells like my good asian friend's house.

Sun, 01/26/2014 - 23:11 | Link to Comment The Heart
The Heart's picture

If anyone in interested, Dave Hodges is about to start his show on this link.

A Story about foreign troops later.

Listen in for some possible enlightening info.

http://republicbroadcasting.org/listen-live/

Sun, 01/26/2014 - 23:17 | Link to Comment williambanzai7
williambanzai7's picture

I was wondering about this. Everything is closed in China during that period, so how is a depositor going to do wire transfers?

Sun, 01/26/2014 - 23:22 | Link to Comment LetThemEatRand
LetThemEatRand's picture

"Besides the regular days off (Saturday and Sunday), Chinese people also enjoy the holidays of Spring Festival, Qing Ming Festival, May Day, Dragon Boat Day, Mid-Autumn Day, National Day, and New Year's Day. Take the Spring Festival for an example. According to the state regulations, Chinese people can take three days off, including the December 30th, January 1st and January 2nd of the Chinese lunar calendar. So, during this time, most sectors are closed. Only some service sectors, like banks, post offices, tourist companies and railway stations, are open."

http://www.travelchinaguide.com/essential/business-hour.htm

Mon, 01/27/2014 - 00:44 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Dragon Boat Day

They have a Dragon Boat day?  WTF?  I feel so cheated. 

Mon, 01/27/2014 - 02:48 | Link to Comment williambanzai7
williambanzai7's picture

Don't feel cheated. You can go participate in Flushing Meadow Park.

Sun, 01/26/2014 - 23:17 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Submitted for your approval.  A story on ZH that debunks a story about a liquidity crisis in China.  First post in response is deleted.  New posters appear out of nowhere to cheer the calling out of the silly liquidity squeeze story.  Everything is fine, you will learn, in the Twilight Zone.

Sun, 01/26/2014 - 23:28 | Link to Comment fonzannoon
fonzannoon's picture

hope u caught that LTER.

Sun, 01/26/2014 - 23:36 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I think I got it.  Check your inbox.  May have typed it in wrong.

Mon, 01/27/2014 - 00:24 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Crap.  Must have missed it by a letter or two.

Okay, got it.  For anyone who missed mine, it's LTER@ILoveObama.gov.

Sun, 01/26/2014 - 23:43 | Link to Comment NoDebt
NoDebt's picture

If you got it, send me a copy, please, Fonz.  

Sun, 01/26/2014 - 23:22 | Link to Comment disabledvet
disabledvet's picture

Here's the "short list" in case the Chinese are wondering "just in the USA alone": http://en.wikipedia.org/wiki/Debt_deflation
again...THIS IS DEBT DEFLATION...which is different from a mere "market collapse."
when debt itself deflates ALL assets simply "freeze up" leading to stranded ASSETS.

this is something that must be acted against dramatically. To my knowledge there has been only one successful approach: http://www.u-s-history.com/pages/h952.html

THIS IS THE ONLY EXAMPLE PERIOD.

This Fed at least understood the risk and acted to pre-empt it.
Up until taper this...a least not a Depression.
But without the ability to "resort to gold" (all the Bank's gold was on the line in 1907) then there really is no interest in the banks to do anything with the money but sit on it.

Now we have "taper."
Those banks who've been "sitting on it" are suddenly be awakened to the nightmare of "contagion."
INSTANTLY.

"China says HSBC is bad but Citigroup is good"?
Hmmmm. "I don't think so."
When all Capital is put at risk...all capital is put at risk.

The banks will band together and open their books to try to assess just exactly where the risks like here...and act accordingly.

Citigroup has a VERY long history going back centuries with Japan.
That includes rebuilding Japan after the devastation of World War II.

They will work with the other Western Banks who have similar experiences in China and go from there.

Mon, 01/27/2014 - 07:03 | Link to Comment negative rates
negative rates's picture

They say you will go insane if you talk to yourself long enough, and after that chat, it's long enough.

Mon, 01/27/2014 - 00:26 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I'm calling bullshit and saying the notice went out too early and now they are backtracking.

http://in.reuters.com/article/2014/01/17/china-icbc-idINL3N0KR01T20140117

 

* China Credit Trust says pay out due on Jan. 31

 

* Industry executives say investors may get repaid following delay

 

* Investors watching for precedent-setting first default

 

* Widespread assumption of implicit guarantee against default

SHANGHAI, Jan 17 (Reuters) - The trust firm responsible for a troubled high-yield investment product sold through China's largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million)product matures on Jan. 31, state media reported on Friday.

Investors are closely watching the case to see if it will shatter assumptions that the government and state-owned banks will always protect investors from losses on risky off-balance-sheet investment products sold through a murky shadow banking system.

Based on a loan to an unlisted coal company, the now distressed product was created by China Credit Trust Co Ltd, while Industrial and Commercial Bank of China , the world's largest bank by assets, helped to market it to wealthy investors in central Shanxi province.

On Friday, the official China Securities Journal reported that the trust company is considering legal action to press related parties for repayment to protect investors' interests.

The newspaper went on to quote trust industry sources saying an outright default was likely to be avoided simply by delaying repayment until arrangements were made to repay investors by other means.

...

If I was a betting man that statement is the decider if they cut off cash transfers or not come Jan 30th.

2. During Spring Festival, Foreign Currency Transfer Transaction through Citibank (China) Online and Citi Mobile will be temporally not available from January 30, 2014 18:00pm to February 7, 2014 09:00am. We apologize for any inconvenience caused.

 

If this was b.s why would they suspend foreign transfers and basically all conversions the renimbi to foreign currency for 7 days starting the day before the default is supposed to happen? We know the answer why and since Citibank put the announcement up too early the jig is blown as far as keeping keeping the 'hot money' related to this from running for exits ahead of time like what happened in Cyprus.

Whether the banks close for the holiday or not excuse the rest of the world doesn't so foreign currency swaps should not be closed also.


 

 

Mon, 01/27/2014 - 00:53 | Link to Comment laomei
laomei's picture

That distressed product going under impacts a whopping 700 idiots who dropped some 5m+ RMB a piece into a laughable uninsured bond paying like 11% for multiple years.  To make it even better, the coal company was operating illegally and got shut down.  Do you honestly believe this has ANY impact on ANYTHING in China?  Here's a tip, if gordon chang says a thing, it's pretty much guaranteed the opposite is true.

Mon, 01/27/2014 - 01:07 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

So I guess Citibank posting that on it's website wasn't true then regardless of Gordon's record.

Mon, 01/27/2014 - 01:29 | Link to Comment walküre
walküre's picture

when you see one rat, you can be assured there are more

Laughable or not, the trust default story made the rounds everywhere. You know your own people and widespread superstition and distrust.

When one domino falls and may it be as laughable as the "as good as gold #1 equity trust" (total scammers product and obvious to everyone here but not to 700 idiots as you correctly point out), when one such domino falls there is going to be a contagion and scrutiny for many other such products.

Chinese growth number has been a mirage for years now. Let's see how long they can keep the illusion up. Maybe the minds are clouded as thick as the smog in Beijing?

Mon, 01/27/2014 - 01:43 | Link to Comment laomei
laomei's picture

Go back to the source for it and you'll find the same guy who hypes up everything as if it matters (hint, it's gordon).  If you do your research, you'll find several classes of these "wealth management" products.  Small cap shit is covered by the bank because it's generally safe as all shit and offers rather low interest anyways.  Higher interest stuff targets idiots with too much money as it is and are generally uninsured.  Then there are the non-loan type investments which play the market.  These are very much insured, and it's a reason why these banks have branches in the US... because it's wall street doing the insuring.  Fucking around with things to cause them to fail will be AIG 2.0 for the US.  Smaller idiotic banks being stupid, but insuring, tend to get their insurance via the big-4, and the big-4 pass that shit off overseas.  The very notion that you can yield 11% with 0 risk is just laughable and that's why when shit is PR5 or even PR4 on the risk-scale, you generally need to stop in and do it in person along with verification that this isn't some potentially crippling loss if it fails.

Mon, 01/27/2014 - 01:57 | Link to Comment walküre
walküre's picture

Don't need to convince me that it was hyperbole and small small fry.

http://www.bloomberg.com/news/2014-01-27/china-s-stock-index-futures-dec...

Is TPTB using the "rout" in China as an excuse to crash markets here?

So many headlines putting focus on Chinese economy in a bad way. That's a new script imo. Up until recently the headlines were all about the "miracle" economy in China.

Speaking of miracle economies. Apparently Germany's GDP growth is supposedly 2.8% this year and they're talking boom times over there. It would be incredible if it were true considering the challenges in the Euro area.

Sun, 01/26/2014 - 23:32 | Link to Comment TheInfoman
TheInfoman's picture

DCH has a point.  The big money insiders haven't been given enough time to gather their wads of dough and squeeze through the turnstiles first.  Therefore, there is an immediate need to backtrack to allow that to happan.

Sun, 01/26/2014 - 23:38 | Link to Comment OC Sure
OC Sure's picture

"...one could simply keep track of interbank liquidity indicators such as repo and SHIBOR, both of which dropped, indicating that liquidity actually improved."

No one is more telling than Mr. Market.

All the other major market indicators did not flinch as much as one may expect which also tipped that the news was bogus (or at least irrelevant).

Mon, 01/27/2014 - 00:07 | Link to Comment matrix2012
matrix2012's picture

GORDON CHANG ... DEAN CHENG... all are the same, get paid to tell the lies and mislead their unsuspicious readers.

Notice on how these storyline tellers are putting in use the Chinese surnames to give some credentials to as if qualifying as "the experts" in China. lol

Mon, 01/27/2014 - 01:44 | Link to Comment Harry Dong
Harry Dong's picture

Don't forget gordn Chen!    Noble house....j clavell?

Copyright ©2009-2013 ZeroHedge.com/ABC Media, LTD, Disney....lol

Mon, 01/27/2014 - 00:18 | Link to Comment Leraconteur
Leraconteur's picture

I live and bank in China. They do NOT shut down the banking system the entire week of the holiday. Never done that. total nonsense. In fact banks are often open every day of the year except for a few days. Saturday and Sunday open, too.

The holiday begins Friday, the holiday WEEK is not THIS week, it is NEXT week.

'Banking Holiday' the week before? Nonsense.

No transfers or FX conversions? Never happened before.

Mon, 01/27/2014 - 01:02 | Link to Comment Constitutional ...
Constitutional Republic's picture

Quite so.

Mon, 01/27/2014 - 00:25 | Link to Comment JackT
JackT's picture

Isn't there anyone from china on here? Comeon!

Mon, 01/27/2014 - 01:04 | Link to Comment Constitutional ...
Constitutional Republic's picture

See the earlier comment above yours by 'Leraconterur'. Hope that helps. 

Mon, 01/27/2014 - 00:35 | Link to Comment SweetDoug
SweetDoug's picture

'

''

 

Saw the story on another site, earlier, and nearly crapped my pants! This was a game-changer! Something, not exactly knowing what it would be, but having feared something like this all along was coming, that was a prelude to who knows what!?

<Well, okay, my 85 year old mother nearly had to change her Depends when I told her about this news. Okay, I probably was going to have to change them for her… You saved me! I owe you TD.>

But! i said to my Ma… "Ma! Let me check ZeroHedge! They'll have the skinny on this!"

Sure enough, I checked with the best finance news site on the web, knowing they would have the dirt, and set me straight.

When I want to find out what's going on in Finance and the world, I come to ZeroHedge!

 

Thumbs ups, guys!

Thanks!

•J•
V-V

 

PS. Someday though, I will read on this site, the breaking story that will be a world changer, and i will read it here first.

I do not look forward to that day.

Mon, 01/27/2014 - 00:39 | Link to Comment walküre
walküre's picture

Does this mean that the "As good as gold #1 equity trust" is really as good as gold?

Has Batman been sighted over Gotham? All is well then?

Rumors about Chinese trust defaults are being whispered everywhere. Good thing the PBOC is putting an end to the rumor mills. It is after all the "People's Bank of China" and under direct command from the Communist Chinese Central Planning Bureau.

I believe that like I believe Obama's propaganda about the economy and a federal health care plan.

Mon, 01/27/2014 - 08:20 | Link to Comment hoist the bs flag
hoist the bs flag's picture

hmmm...just as fake as Chinese sunset billboards. go figure.  http://www.techinasia.com/beijing-residents-watching-fake-sunrises-giant...

Mon, 01/27/2014 - 13:08 | Link to Comment matrix2012
matrix2012's picture

No, Beijing residents are NOT watching fake sunrises on giant TVs because of pollution

January 20, 2014at 2:00 pm by Paul Bischoff

 

Over the weekend, a story that originated on the smut-ridden UK-based Daily Mail went viral among major media outlets across the world. Time, CBS, and the Huffington Post were among the dozens of online news media who published stories about Beijing residents flocking to giant TV screens to see fake sunrises during heavy pollution last week. Most of these stories were accompanied by the same photo of a massive TV screen in Tiananmen Square with a sunrise appearing on it.

<image>

Edit @1/22/2014 11:25 a.m.: The Huffington Post has reached out to us noting that their article stated the image on the screen “appeared to be part of an advertising campaign.” While the article is factually correct, we still feel strongly that the story’s headline, photograph, and tone misrepresents the truth behind the images that circulated online.

In truth, that sunrise was probably on the screen for less than 10 seconds at a time, as it was part of an ad for tourism in China’s Shandong province. The ad plays every day throughout the day all year round no matter how bad the pollution is. The photographer simply snapped the photo at the moment when the sunrise appeared. Look closely, and you can even see the Shandong tourism logo in the bottom right corner. The photo was credited to ChinaFotoPress via Getty Images, so a Daily Mail reporter did not take it.

In fact, Daily Mail reporter James Nye, who apparently quoted a traffic coordinator in Beijing, lives in New York City, according to his Twitter profile. CBS went so far as to copy that quote. The quote, in which the man complained about the pollution, originally came from an unrelated Associated Press story published a day earlier.

 

http://www.techinasia.com/beijing-residents-watching-fake-sunrises-giant-tvs-pollution/

 

Thanks hoist the bs flag for bring it into limelight here!

 

*** There is a WEIRD thing about the ORIGINAL link of CBS article:

http://www.cbsnews.com/news/beijing-turns-to-virtual-sunrise-due-to-poll...

 

I can access the article if I use North American IP; BUT VERY STRANGE if I switch to an Asian IP then that article is inaccessible. Please give it a try. I wonder WHY some particular article from CBS like this one is IP-bound ??? It's definitely not an issue of paid/subscriber vs. free access.

Anyhow there's a webcache link for the global readers.

 

 

* * * * * *

 

Westerners are so convinced China is a dystopian hellscape they’ll share anything that confirms it – Quartz

By Gwynn Guilford @sinoceros January 20, 2014

 

When it comes to China stories, people will believe almost anything. Take, for instance, the reports about pollution being so severe in Beijing that residents now watch radiant sunrises broadcast on a huge screen in Tiananmen Square.

So, that never happened. As Tech in Asia flags, the sunrise is a clip from a tourism ad for Shandong province, in China’s northeast; it’s on screen for maybe 10 seconds or so per loop.

But that didn’t prevent a slew of prominent media outlets—including Time, CBS News and the Huffington Post—from running the story, which originated in the UK-based Daily Mail, each taking their own liberties with the truth. The “glorious sunrise was broadcast as part of a patriotic video loop,” explained Time.

[...]

But more to the point: Western readers eat this stuff up. Based on Quartz’s experiences, Western audiences generally love Chinese “airpocalypse” stories. It’s not only on Quartz that they tend to attract readers; a friend and editor of a China-focused news site told me last summer that he’s equally baffled by the enduring popularity of air pollution stories. And by interweaving the themes of pollution and the government’s Orwellian-tinged attempts to control daily life, the Daily Mail offers a double-whammy of Western reader stereotypes about China.

But how do relatively respectable outfits like Time, HuffPo and CBS jump onboard with circulating fake stories? Simply by not checking, for one. You can be pretty sure if that really happened, there would be some report in Chinese about it (and while there are blog posts and Chinese translations of the Daily Mail story, there aren’t any original reports from Beijing).

What’s more unnerving, though, is that while several of the media outlets updated their posts already, none has changed the headline or noted that the story isn’t true. Does that mean that accuracy and accountability don’t matter for click-bait pieces about China that “feel” true? Unfortunately for readers, that seems to be the case.

 

http://qz.com/168705/westerners-are-so-convinced-china-is-a-dystopian-he...

 

 

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