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Chinese Authorities Halt Virtual Credit Card Payments; Tencent, Yahoo Crashing

Tyler Durden's picture




 

The PBOC issued a statement today, according to 21st Century Business Herald, that halts virtual credit card products and "face-to-face" payment services such as QR code payment:

  • *PBOC HALTS QR CODE PAYMENT: 21ST HERALD
  • *PBOC HALTS VIRTUAL CREDIT CARDS BY ALIPAY, TENCENT: 21ST HERALD

Tencent is down over 5%, China CITIC is crushed, and Yahoo was dumped in morning trading in Japan (on the back of Alibaba's Alipay service being affected).

 

21st Century Business Herald reports:

March 13, the central bank issued an urgent document halt Alipay, Tencent's virtual credit card products, but stopped there barcode (QR Code) payment and other payment services face to face.

21st Century Network 21 has learned that on March 13, the central bank issued an urgent document halt Alipay, Tencent's virtual credit card products, but stopped there barcode (QR Code) payment and other payment services face to face.

 

Tencent is tumbling (and it appears perhaps a few people knew earlier in the week)...

China CITIC is down hard...

 

and Yahoo (trading in Japan) was flushed on massive volume at the open...

 

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Thu, 03/13/2014 - 23:16 | 4546439 CPL
CPL's picture

Is China a republic or a bank now?

Thu, 03/13/2014 - 23:24 | 4546468 XRAYD
XRAYD's picture

a banana bank.

Thu, 03/13/2014 - 23:31 | 4546487 JLee2027
JLee2027's picture

Bitcoin will be next.

Fri, 03/14/2014 - 00:04 | 4546577 knukles
knukles's picture

Not to worry because it's all self-contained in China and aside from some fear mongering amongst a few websites like ZH, the Chinee economy is booming, property prices skyrocketing, inflation stable, skies clear, water clean, pigs happy, educated populace, chickens healthy, peaceful global intentions recognizing the dominance of the US global power having won the Cold War, readily adopting strong Jesuit Western values without any cultural clash, proud to be the Coolies of the Universe....

What could go wrong?

Fri, 03/14/2014 - 00:43 | 4546658 knukles
knukles's picture

And while we're at it, how's that Abenomics shit workin' out for y'all over there in Japan, eh?
You know, that hyper-expansive monetary policy, monetizing everyfuckingthing under the sun for 30 years and hyper-massive government deficits for 3 generations?

Fuckin' great that we here in the Good Olde USofA ain't doing the same shit now, isn't it?

Say where again are those long term rates and how's been those equity market performance been for the last 30 years in Japan?
Not happy, are we, no?

Ah, that fine, strong Jesuit training...
Get that fucking yield while you can, kids

Fri, 03/14/2014 - 01:01 | 4546691 National Blessing
National Blessing's picture

The sky is falling.  And soon we'll all be dead.  Where the freak is my pumpkin pie?  Bitches.

Fri, 03/14/2014 - 01:39 | 4546736 Boris Alatovkrap
Boris Alatovkrap's picture

PBOC:

"Wi no lai king an lain kulejito tulan saxian, yu masu pei in peipa."

Translation:

"No credit for you"

Fri, 03/14/2014 - 05:02 | 4546871 Unpopular Truth
Unpopular Truth's picture

What is a virtual credit card pmt?

Fri, 03/14/2014 - 06:01 | 4546914 Squid-puppets a...
Squid-puppets a-go-go's picture

banks issue credit card numbers with no associated plastic/physical card. They are used primarily by businesses particularly for online transactions.

thus the yahoo plunge

Fri, 03/14/2014 - 06:16 | 4546928 Boris Alatovkrap
Boris Alatovkrap's picture

"Virtual Credit Payment"

is when pretend to pay for people who is pretend to work,... or some sort of thing.

Fri, 03/14/2014 - 06:26 | 4546936 negative rates
negative rates's picture

If the japs find out what  this gvts been doing, it's curtains!

Fri, 03/14/2014 - 06:59 | 4546958 GetZeeGold
GetZeeGold's picture

 

We'd better get back cause they mostly come out at night.....mostly.

http://www.youtube.com/watch?v=B436avtEXzs

Fri, 03/14/2014 - 15:05 | 4549111 Unpopular Truth
Unpopular Truth's picture

thank you

Fri, 03/14/2014 - 06:04 | 4546917 TheHound73
TheHound73's picture

I understand this simply means QR code payments (via phone).  PBOC telling tech and internet companies to stay the fuck out of the payments industry.

Fri, 03/14/2014 - 00:04 | 4546579 fonestar
fonestar's picture

We know that nothing will happen when credit cards everywhere go dark.  Because nobody would accept digital currency anyway.

Fri, 03/14/2014 - 00:09 | 4546585 Rock On Roger
Rock On Roger's picture

Have you had an epiphany?

 

Stack On

Fri, 03/14/2014 - 00:21 | 4546607 fonestar
fonestar's picture

It was sarcasm.  Everything is already digital and has been since the 1970's.  When credit cards, debit cards, ATMs and kiosks stop working things will turn to anarchy.

Fri, 03/14/2014 - 01:09 | 4546641 Tall Tom
Tall Tom's picture

Anarchy ain't such a bad thang.

 

Actually its much better than that Totalitarianism that the Digital Currencies have all of us too betwixt and beholding. Now maybe it is fine time for you to be awoken out of that demonic induced spell which was cast upon your soul.

 

Crash and burn China. Take the whole damned house of cards down so that it can be discarded upon the rubbish heap of History where it so rightfully belongs. Fuck digital currencies which are not representative of true value and stored energy...not necessarily Gold but labor for real items of utility.

 

Perhaps man has lost the idea about what money is and what it shall be used for. Perhaps we need to relearn that as we have regressed into a societal immaturity. So perhaps a return to BARTER is necessary as the trust has been completely eroded and confidence has diminished to unfathomable lows.

 

Sarcasm? You were writing about a dream come true. Anarchy reads as a very good thang in my book.

 

What is the goal of Project Mayhem anyway? (I know...never ask about Project Mayhem...or talk about Fight Club.) Sorry Mr. Durden. My apologies sir.

Fri, 03/14/2014 - 01:23 | 4546719 fonestar
fonestar's picture

Well fonestar was only attempting to illustrate that because one digital system is mathematically destined for destruction does not mean all digital systems are.  Yes, the Bitcoin network may experience disruptions and problems in an end of fiat times situation.  But if you plan on living past the fiat tribulations you should own some Bitcoins.

BTW, fonestar hopes that picture is of the real Satoshi.  Seeing him standing there on that hill defiant and unwavering, wearing khakis and sneakers like a real tekk man is a truly moving sight to behold.  It has become fonestar's laptop's background.

Fri, 03/14/2014 - 01:44 | 4546742 Boris Alatovkrap
Boris Alatovkrap's picture

You can buy much kool-aid with BitCoin. Zazdrovje!

Fri, 03/14/2014 - 17:10 | 4549711 Jack Napier
Jack Napier's picture

Anarchy sounds great in theory, ultra localized government down to the individual, but then what happens when you go to war with your neighbor? Whoever has the most gold gets to hire the most armed guards?

Still, I'd take my destiny into my own hands in a heartbeat if the only alternative is what we have today.

I'd like to see it down to the local level, but with the hierarchy flip flopped; city > county > state > fed up. County reps only ballotted from existing elected city reps, state reps from elected county reps, Fed reps from existing state reps. If you lose any previous position to get where you are then you are not entitled to any greater position. That way nobody gets into power except by the will of the people. Grassroots, bitchez.

And yes, since we have had digital currency since the 1970's of course it is the best way to do things. Obviously going off the gold standard was a good idea too, just look at all the warmongering and debt servicing we've accomplished. Only a total tool would look at more than a single generation's worth of history to make an informed decision. We all know that America, I mean Texas, is the best, and that if it's the way we do it then it's the way it oughta be done. Now let's go get dem group'a folks, I mean terrists, Yeehaw! DEY TUK ARE JOBS!

Fri, 03/14/2014 - 01:23 | 4546720 disabledvet
disabledvet's picture

"And now we'll halt literal payments too! TAKE THAT CAPITALISM!

Fri, 03/14/2014 - 00:36 | 4546642 FEDbuster
FEDbuster's picture

and when things turn to anarchy, you better have some precious metals like gold, silver, copper, lead and brass.

Fri, 03/14/2014 - 01:20 | 4546714 Nobody For President
Nobody For President's picture

Check.

Check.

Check.

Check.

Check.

You forgot the booze.

Check.

Fri, 03/14/2014 - 03:08 | 4546812 OldPhart
OldPhart's picture

You both forgot broads...(just sayin')

Fri, 03/14/2014 - 05:56 | 4546907 Quinvarius
Quinvarius's picture

Broads will come cheap after the collapse.

Fri, 03/14/2014 - 06:06 | 4546920 Squid-puppets a...
Squid-puppets a-go-go's picture

deflationary pussy?

as if we needed more motive to stop the hyperinflationists

Fri, 03/14/2014 - 00:47 | 4546643 dryam
dryam's picture

It's good to know that those Bitcoin shops can be found on just about every street corner so I can redeem my bitcoins when the the internet is frozen.

Fri, 03/14/2014 - 00:52 | 4546677 TheHound73
TheHound73's picture

No, silly, when the zombies come out is when you need gold.  In the meantime feel free to keep using YellenBux, #winner.

Fri, 03/14/2014 - 08:12 | 4547083 mtl4
mtl4's picture

Seems to me silver would be a better option for repelling the undead.

Fri, 03/14/2014 - 08:52 | 4547226 countryboy42
countryboy42's picture

I'll stick to 200 gr. Accubonds at 3200fps.

Fri, 03/14/2014 - 00:43 | 4546664 Rock On Roger
Rock On Roger's picture

Aye. There will be anarchy.

If you're handy with a pitchfork and a rifle maybe I'll feed you in exchange for a few days of your labour down on the ranch.

 

Stack On

Fri, 03/14/2014 - 00:52 | 4546678 fonestar
fonestar's picture

Okay.

Fri, 03/14/2014 - 01:17 | 4546707 q99x2
q99x2's picture

You mean Bitcoin is going to go dark?

Have you been to a FEMA camp?

How about silver is that going to be worth anything. I go to college maybe I can sell my knowledge.

Fri, 03/14/2014 - 02:47 | 4546794 Millivanilli
Millivanilli's picture

You could also sell your pleasure holes.

Fri, 03/14/2014 - 03:03 | 4546807 geotrader
geotrader's picture

And your kidney. 

Fri, 03/14/2014 - 06:16 | 4546929 Squid-puppets a...
Squid-puppets a-go-go's picture

If you like your kidneys, you can keep your kidneys*

* dependant on whether you were prudent enough to hold precious metals

Fri, 03/14/2014 - 01:31 | 4546727 RafterManFMJ
RafterManFMJ's picture

Everything is already digital and has been since the 1970's...

"Yeah well, I still jerk off manually."

Fri, 03/14/2014 - 09:08 | 4547306 V in PA
V in PA's picture

Best Comment of the day!

Fri, 03/14/2014 - 06:15 | 4546927 ptolemy_newit
ptolemy_newit's picture

Fonstar,

You are just to early, yes there will be a digital curency that is tracable every where.  But is not bitcoin. 

 

 

Fri, 03/14/2014 - 00:39 | 4546654 TheHound73
TheHound73's picture

Bitcoin payments are already pretty much border line illegal in China, although China has said it is legal for their citizens to buy and sell BTC as a commodity.  Only thing is, actually halting decentralized BTC payments takes a lot more than tossing up a PDF to a website and phoning up  some CEO.

Fri, 03/14/2014 - 01:14 | 4546705 disabledvet
disabledvet's picture

LAWYERS UP! Financial Romulens dead ahead.

Set lasers to STUNNING!
On Scream Number Two!

Fri, 03/14/2014 - 02:30 | 4546785 davidgdg
davidgdg's picture

What do you mean "next"? PBOC banned banks from doing BTC business back in early January. It's already priced in.

Thu, 03/13/2014 - 23:35 | 4546489 TruthInSunshine
TruthInSunshine's picture

Actually, China is making the Fed, ECB, BOE & BOJ look like "banana republic" central banks backstopping banana republics, at his juncture.

Moral hazard and NOT-too-big-to-fail are concepts alive & well in China as of now.

Fri, 03/14/2014 - 00:19 | 4546608 HardlyZero
HardlyZero's picture

We will know its near the End when $500 and $1000 bills come out and it will be like MonopolyTM money on the streets.   Pretty soon demand will rise for $5000 and $10000 bills.

Fri, 03/14/2014 - 00:26 | 4546623 Downtoolong
Downtoolong's picture

Put Bernanke on the first $billion dollar bill. He would be pleased. It would be the ultimate selfie.

 

Fri, 03/14/2014 - 01:34 | 4546731 RafterManFMJ
RafterManFMJ's picture

I cannot FUCKING wait to pay off my mortgage with a Bernanke Billion dollar bill and STILL have enough left over for a tall latte.

Fri, 03/14/2014 - 01:59 | 4546764 Dollarmedes
Dollarmedes's picture

"...a tall latte."

With or without the full release?

Fri, 03/14/2014 - 00:44 | 4546666 Tall Tom
Tall Tom's picture

It will not happen. All US issued currency will be digital at that point. And the totalitarian state will have complete control. That is what this is about. Currency has become the implement of Tyranny. You are enslaved to it.

 

BREAK YOUR CHAINS.

Fri, 03/14/2014 - 00:52 | 4546675 Herd Redirectio...
Herd Redirection Committee's picture

And you will have a microchip imbedded, made and tracked by Freescale Semiconductor.

 

Fri, 03/14/2014 - 06:53 | 4546953 buzzsaw99
buzzsaw99's picture

Is that a public company? Can I buy stock? Sounds like massive growth potential.

Fri, 03/14/2014 - 10:51 | 4547882 bookwurm
bookwurm's picture

Freescale had 20 employees on that missing Malaysian Air flight. 

Fri, 03/14/2014 - 02:25 | 4546783 Kirk2NCC1701
Kirk2NCC1701's picture

@XRAYD: "a banana bank".

So, Yellow on the Outside, White on the Inside?

Thu, 03/13/2014 - 23:18 | 4546450 old naughty
old naughty's picture

Oligarchs playing decisive roll !?

Thu, 03/13/2014 - 23:18 | 4546453 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Canary in a coalmine!

Thu, 03/13/2014 - 23:25 | 4546470 Its Only Rock N Roll
Its Only Rock N Roll's picture

one that is in default too

Thu, 03/13/2014 - 23:32 | 4546491 Grande Tetons
Grande Tetons's picture

Nope, there was actual canary in the coalmine according to the PBOC. 

http://images.sodahead.com/polls/001226297/canary20in20the20coal20mine_x...

That would make a pretty cool avatar for Zerohedge..should someone feel so inclined. 

Thu, 03/13/2014 - 23:48 | 4546542 TrustWho
TrustWho's picture

The coal gas has killed the canary.

Fri, 03/14/2014 - 01:17 | 4546710 disabledvet
disabledvet's picture

It's the Canary in the Cocaine! "Long blustery winter in the Caribbean."

Thu, 03/13/2014 - 23:31 | 4546486 papaswamp
papaswamp's picture

Another mainland Chinese company defaulted on debt payments, raising fears that indebted businesses are running out of refinancing options
Haixin Steel, a Shanxi steel mill, has defaulted on bank loans (Financial Times story - gated, but can be read with a free registration)
-Forexlive

Thu, 03/13/2014 - 23:45 | 4546529 TruthInSunshine
TruthInSunshine's picture

There will literally be multiple, small, medium & large Chinese companies defaulting on their debt obligations DAILY now, for a long, long time.

The global bond & equity markets are about to go absolutely apeshit, as the detritus of bad debt that central banks have pumped out over 5 long years gets incinerated, along with the leveraged mal, mis, and disinvestments that such reckless monetary policy not only encouraged, but literally invited.

Fri, 03/14/2014 - 00:34 | 4546635 DeadFred
DeadFred's picture

You promise right? I've had the hope that this charade would end before (and before and before) only to have my hopes dashed. I do think you're right but I thought it before (and before and before). On the other hand I've never seen the body of someone who has starved to death and if it comes down as badly as I fear I may get to. When the banks close and the EBTs go blank it will be ugly.

Fri, 03/14/2014 - 00:56 | 4546686 disabledvet
disabledvet's picture

YEEE HAW! Lock 'n LOAD!

Fri, 03/14/2014 - 01:06 | 4546697 GooseShtepping Moron
GooseShtepping Moron's picture

I've read a lot of similar comments lately, viz. that the day of reckoning is taking much longer to come than it should, that the powers that be seem able to kick the can indefinitely, and so on. I'm not picking on you personally DeadFred, but after devoting some thought to the matter I've come up with a partial response.

The coming fin de siècle (no, not the bike race in Helsinki) has the distinction of being the most eminently foreseen secular reversal in history; so foreseen in fact that many have been waiting for years for it with baited breath. However, that does not mean that the details of its unfolding will be known to us with any greater clarity than if it had emerged, kraken-wise, unheralded out of the depths. What it does mean is that those responsible for staying the present course will be all the more reviled by posterity, and will in good time meet with a retribution so horrible that one could say hell itself arose to take them. It's not merely that they missed the warning signs, or even that they failed to heed the warning signs; no, the signs were proclaimed with a great voice and they silenced it; stoned the prophets who were sent to them; smothered, smited, and shackled any protest of dissent. They rushed headlong to their own graves and tried to drag us all with them. There is no excuse for what these men have done and no pity shall find them.

Fri, 03/14/2014 - 02:08 | 4546771 Dollarmedes
Dollarmedes's picture

It seems to be "different this time" for two reasons:

1) China is too big to save. The manipulations of foreign banksters won't outweigh the $15 trillion in credit the Chinese created, and it won't outweigh the mountains of ore being dumped onto the market. Remember also, that businesses are likely to have taken out multiple loans using the same collateral.

2) The Chinese government has shown no willingness to stop this process.

 

Express elevator to hell...going down!

Fri, 03/14/2014 - 03:51 | 4546849 Julian
Julian's picture

""The coming fin de siècle (no, not the bike race in Helsinki) has the distinction of being the most eminently foreseen secular reversal in history; so foreseen in fact that many have been waiting for years for it with baited breath. However, that does not mean that the details of its unfolding will be known to us with any greater clarity than if it had emerged, kraken-wise, unheralded out of the depths. What itdoes mean is that those responsible for staying the present course will be all the more reviled by posterity, and will in good time meet with a retribution so horrible that one could say hell itself arose to take them. It's not merely that they missed the warning signs, or even that they failed to heed the warning signs; no, the signs were proclaimed with a great voice and they silenced it; stoned the prophets who were sent to them; smothered, smited, and shackled any protest of dissent. They rushed headlong to their own graves and tried to drag us all with them. There is no excuse for what these men have done and no pity shall find them"".......

Poetry my friend...


Fri, 03/14/2014 - 03:16 | 4546820 Gief Gold Plox
Gief Gold Plox's picture

This one? http://www.ft.com/cms/s/0/27f9f4aa-aa82-11e3-9fd6-00144feab7de.html

If you're on firefox, set your user-agent to be "Googlebot2.1" and the article will be accessible without registration.

Thu, 03/13/2014 - 23:34 | 4546496 JuliaS
JuliaS's picture

Bullish in a China shop.

Thu, 03/13/2014 - 23:36 | 4546501 SilverIsMoney
SilverIsMoney's picture

You just get this feeling...

Thu, 03/13/2014 - 23:38 | 4546506 Atomizer
Atomizer's picture

Congress will rubber stamp a new spending bill to overlook accounting error. House will say, fuck you. 

Fri, 03/14/2014 - 00:48 | 4546667 Tall Tom
Tall Tom's picture

The Republican led House will say "Fuck You Obama", make a gesture of voting against it, then turn around and vote to give it the FUNDING FOR THE IMPLEMENTATION...just like they did with ObamaCare.

Thu, 03/13/2014 - 23:45 | 4546531 Tinky
Tinky's picture

You know those documentaries about explorers in the arctic, trekking across the ice? First an unsettling noise, then a crack, suddenly a fissure...

Thu, 03/13/2014 - 23:49 | 4546543 Shyysiryxius
Shyysiryxius's picture

...then the drop

Fri, 03/14/2014 - 00:23 | 4546615 Philalethian
Philalethian's picture

Mommy...I'm hungry. Where's daddy...and who are those mean loking men coming into our bedrooms?

http://thecommonsenseshow.com/2014/03/13/slave-labor-camps-are-next/

 

Thu, 03/13/2014 - 23:48 | 4546540 carbonmutant
carbonmutant's picture

Bitcoin is the roach that will not die...

Fri, 03/14/2014 - 00:04 | 4546578 codyave
codyave's picture

squish a bitcoin and two alt-coins take its place.

Thu, 03/13/2014 - 23:51 | 4546548 GooseShtepping Moron
GooseShtepping Moron's picture

This is not your ordinary everyday piece of bad-news-is-good-news. This is serious. China is gearing up for something.

Stopping these payment systems was probably just one minor act of protocol in preparation for something much larger, don't ask me what. To transvaluate an overused phrase, it's different this time.

Fri, 03/14/2014 - 03:11 | 4546816 Dudeskis
Dudeskis's picture

China taking the first steps to control capital flows(rats) *sinking ship next

Thu, 03/13/2014 - 23:53 | 4546551 Rising Sun
Rising Sun's picture

Print your way out of this one Yellen you miserable fucking cunt!!!!!

Fri, 03/14/2014 - 00:54 | 4546681 I Write Code
I Write Code's picture

Oh she will, Oscar, she will.

Let's see if the US being the safe port in a storm still holds five years into the Obamanation.  If so, Yellen will have less to do.

Thu, 03/13/2014 - 23:54 | 4546554 Seasmoke
Seasmoke's picture

Is there anywhere left to hide ??? What is coming , doesn't look like it's going to be good. 

Fri, 03/14/2014 - 00:22 | 4546610 HardlyZero
HardlyZero's picture

Combi maneuver with Russia Putin taking lead ?

Thu, 03/13/2014 - 23:55 | 4546560 chump666
chump666's picture

Japan is being crushed down over 3%, HK should be 2% neg and Shanghai.  Futures are flat.  The machines can sniff a China stimulus coming. 

Thu, 03/13/2014 - 23:58 | 4546571 TruthInSunshine
TruthInSunshine's picture

Not gonna happen. At least not in the form of bailouts.

The Premiere of China just officially stated as much publicly & loudly, and it's not as if he will come out tomorrow (or next month) and say "ooops, my bad, and we changed our mind."

This was decided upon over a long course of deliberations, methodically, knowing full well what fallout it would bring.

Fri, 03/14/2014 - 00:10 | 4546587 GooseShtepping Moron
GooseShtepping Moron's picture

I completely concur, for what that's worth. It seems to me that the most likely explanation is that China has decided "Enough already."

Fri, 03/14/2014 - 01:38 | 4546735 RafterManFMJ
RafterManFMJ's picture

Who would have thought of all the Nations, China would be the one to put on the Daddy pants?

Fri, 03/14/2014 - 09:27 | 4547429 DeadFred
DeadFred's picture

I don't think this an act of economic responsibility as much as an act of economic warfare. IMHO they think think they can contain the chaos and the West won't be able to. China can survive if their banks fail, America will decay into anarchy.

Fri, 03/14/2014 - 00:14 | 4546588 chump666
chump666's picture

We should be down harsher than this...the last sell off all was all about China i.e Copper/Ore being smashed and default fears.  I'm following the HFTs, rumors on RRR cuts etc.  The Russian thing has been priced in otherwise the EUR would be lower, it took Mario to come out and say he is going print some, claims more deflation is coming bs, for EUR to sell

Chinese CB knows there are a ton of short positions locked into futures now, the markets could capitulate (Copper) into a full blown crash.  Won't be a flush, iron ore could collapse completely taking out the miners that are heavily leveraged. 

They can't contrive a clean out of the system, more likely if they lose control they will sink the world.  Hence Schiller's short the world on a China crisis.

In the meantime they will try their commie/capo dream of steering an ecomomy.

Fri, 03/14/2014 - 00:54 | 4546670 TruthInSunshine
TruthInSunshine's picture

I think chump is right in that there's a good chance China will attempt to "soften" the landing with FISCAL STIMULUS of some sort, but maintain that the Chinese PTB have already decided against TARP or TALF or ongoing/perpetual QE for the ensuing years, which is what the bankers, Wall Street, London, and parasitic financial leeches really want (monetary bailouts).

China will definitely go big on fiscal stimulus to prop up employment rather than do anything to bail out "investors."

p.s. - Speaking of QE, India's central bank is buying Indian Government bonds hand over fist tonight.

Fri, 03/14/2014 - 00:54 | 4546682 disabledvet
disabledvet's picture

Meh. Inflation. "Print like there's no tomorrow."

Question being "will they get the inflation?"
What did Spotswood say in Team America? "That's right people...9/11...times a trillion...

Fri, 03/14/2014 - 00:05 | 4546580 pitz
pitz's picture

Got GOLD, bitchez?

Fri, 03/14/2014 - 00:07 | 4546582 atomicwasted
atomicwasted's picture

I don't understand what QR code payments are.

I can guess, and my guess is they would be highly subject to counterfeit, which would make me understand why payments based on those codes were halted.

However, the story sucks, and the fact that I have to speculate about what's really going on just means better journalism is needed.

 

Fri, 03/14/2014 - 00:51 | 4546673 Owl Flavored
Owl Flavored's picture

Totally agree. At least some complete sentences in english so I can piece it together myself...

Fri, 03/14/2014 - 01:05 | 4546695 Non Passaran
Non Passaran's picture

Because you're too lazy to right click and fucken google it.
Oh I'm so sorry for your loss of time here...

Fri, 03/14/2014 - 04:43 | 4546866 Mentaliusanything
Mentaliusanything's picture

What is QR  credit card.

It is a short term Credit card linked to your main credit card. The owner (you) set the  Fiat limit / expiry Limit on the QR card and no other information. (Note NO other information is held on the card) it is just a Number on a card. Good way to move hot money yet prevent indentity theft. Could they be conterfieted ?? not probable because the number has to link to an operating card to transfer money. You can set the expiry date (Day, week up to one month) as well and if not used to tranfer money it will automatically cut the link to the operating account at the time set.

Think of it like Bitcoin with peer to peer authentfication + its Hot for only as long as you decide then it self destructs on the time limit (an exploding cold wallet).

Closing the Hot money trail they are and its a good thing they realise Credit is counterfiet money.

Them Chinese have Balls

Fri, 03/14/2014 - 00:12 | 4546595 lasvegaspersona
lasvegaspersona's picture

China can never be part of the big boy club with micro management...of everything....not that the 'developed world' is doing things much differently...

Fri, 03/14/2014 - 00:15 | 4546601 gann1212
gann1212's picture

gazprom killed the canary

Fri, 03/14/2014 - 00:16 | 4546603 Spungo
Spungo's picture

ching chong bing bong
(translation: FUUUUUUUUUUUUUUCK!!!!!!) 

Fri, 03/14/2014 - 00:27 | 4546624 Thurifer
Thurifer's picture

Nikkei down over 2.5% but US futures still green.......hmmmm....

Fri, 03/14/2014 - 00:56 | 4546684 mt paul
mt paul's picture

flash em friday

gold 1400..

Fri, 03/14/2014 - 01:21 | 4546716 q99x2
q99x2's picture

The banks are forcing everyone into cash only. Cash that they are printing. And crypto that I might start mining.

Fri, 03/14/2014 - 01:23 | 4546718 Josh Randall
Josh Randall's picture

This is transitory - the Chinese will be fine

Fri, 03/14/2014 - 01:34 | 4546732 GooseShtepping Moron
GooseShtepping Moron's picture

Nikkei getting destroyed into the close. Down -530 and looking ugly.

Fri, 03/14/2014 - 03:47 | 4546847 Rogue Economist
Rogue Economist's picture

Frostbite Falls Global Doom Report.

RE

Fri, 03/14/2014 - 05:03 | 4546872 Super Broccoli
Super Broccoli's picture

Can someone explain me what this move is about ? Is that supposed to be a technical glitch or ...? coz if it ain't then what does it mean ? Huge moneylaundering prepaid markets and their banks can"t handle it anymore ? They decided to hit first on those who won't complain too much ? If that's the case then SHOOOOOOORT PRC's banks, SHOOOOOOT Yuan, long Dollars and Yen ! (how can i say something like that ???? it's insane, this world is crazy)

Fri, 03/14/2014 - 05:23 | 4546887 iLiquid
iLiquid's picture

See my post below yours.

Fri, 03/14/2014 - 05:04 | 4546874 iLiquid
iLiquid's picture

Despite the ZH mistranslation of the title, the PBoC did not halt credit card transactions.  What really happened is as follows:

1.  The bank CITIC (not related to Citi) planned to issue "virtual credit cards" for online payments firms Tencent and Alibaba.  The virtual cards are mostly targeted at those without access to conventional credit cards, such as students, the unemployed and low-income families.  Instead of showing up at the bank and submit the documents proving creditworthiness, the applicant could simply load up the payment app and apply by clicking a button.  The card transactions are likely to be processed outside the UnionPay network, the card cartel founded by major Chinese banks.  Such cards are also usable at brick-and-mortar merchants where Tencent or Alibaba's mobile payment apps are accepted (similar to Google Wallet).

2.  The PBoC, citing regulatory concerns, halted CITIC's business plan.  The main reason is that the approval process may hurt the customers (and the bank's balance sheet) by issuing cards that shouldn't be issued to them in the first place.  Another concern is that Tencent & Alibaba's in-store payment systems have not been tested for security or standard-compliance.  The central bank did NOT halt credit card transactions; what was "halted" is CITIC's newly planned card venture.  NO such virtual cards have been issued at all.

3.  It has been widely discussed what is the real motive behind PBoC's move.  Some (China International Capital Co.) speculated that CITIC's joint venture with independent payment firms drew ire of other UnionPay cartel members, among them powerful state-controlled TBTF banks such as the ICBC, Bank of China and Agricultural Bank.  Others discussed the possibility of knee-jerk crackdown reflex after the central bank's battle against Bitcoin and other online currencies last year.

4.  It has been further speculated that insiders were using the information to generate a media smear campaign after secretly opening massive short positions on CITIC, Tencent, and Alibaba's subsidaries.  Prior to today's smackdown, the same insiders may have pumped up CITIC's stock by "leaking" the credit card plan (marketed as very sound business venture) to the public, thus attracting muppets for later slaughter.

So no, this story is not about capital control or bank runs ... sorry for the disappointment.  Meanwhile, it may be interesting to watch for possible securities fraud allegations.

Fri, 03/14/2014 - 05:24 | 4546875 RadioactiveRant
RadioactiveRant's picture

She'll soon have help, Jeffrey Frankel says the ECB should circumvent Germanys OMT objections by buying American toilet paper: Why the ECB Should Buy American

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