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China's Yuan Drops Most In A Week As Property Developers Tumble
When we left China last night, it was all shits and giggles that bad news is great news and a Chinese stimulus plan will be here any minute to save the day. Having realized the sad fact that is not going to happen (as we explained here most recently) and the specter of banks runs looming, this evening's session has seen property developer stocks tumble - retracing all of last night's losses - the Yuan plunges by the most in a week back above 6.2150. Copper is holding in for now at the magic $300 level but corporate bond prices are falling once again (worst run in 4 months).
The Yuan is dumping at its fastest rate in a week...erasing all the hope-strewn gains from yesterday
Property Developers are taking it on the chin...
And it's no wonder, as Bloomberg notes...
Chinese developers' gross margins declined by a weighted average 294 bps last year.
Most developers have forecast a recovery. Further declines in prices could present a threat.
...
Chinese developers that have reported 2013 results have set an average 2014 sales growth target of 16%, about half last year's 30% rate. This is likely recognition of a need for better inventory management and of a more challenging sales environment. Developers will also probably curb construction because of slowdowns in some tier two and three cities.
...
Longfor Properties summed up the attitude among major Chinese and Hong Kong property developers in its company filings... ."In 2014, the Group's key operating focus will be inventory clearance and cost control... For the coming 6-12 months period, we wil strive to reduce the leve of unsold inventory, hereby gradually improving our sale through rate."
But apart from that... China's fixed and the world economy will be back to normal as soon as the US weather clears up...
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Nothing new... -_-
China has to demolish the relative value of the CNY in order to prevent a a literal economic depression, given their export intense economy.
Everyone will bitch about it, but in the end, China has no real alternative.
Maybe, TIS. I wonder if we can beat their bearing prices down (they quote in dollars). I am NOT a China expert by ANY means, but the only thing i can think of is:
Yikes!
The value of the Yuan dropped a smidge? Wow! That must be a sign of the upcoming apocalypse. Quick. Run to the hills. Bitches.
It's one night, dumbass, and your blog is fucking grade A retarded, bitch.
"Smith" has a lot of friends here on ZH. And a lot ZH aliases that never seem to get banned. Must be some kind of thought experiment since the blog is an obvious hoax. Right DCRB?
Ralph, I have no idea if Smith`s blog is a hoax or not. Seems not. Thought experiment? Who knows?
But, he is married to a foreign gal and writes a non-commercial fringe blog. I like his strong language.
And, it appears that he wants to clean up his life. Like I do. His approach is different than mine. So what.
So what indeed. I'm not into getting people banned - that's up to the Tylers. His posts don't really bother me and the blog reminds me of P. J. O'Rourke and Henry Beard's stuff from the old National Lampoon mags. Peace.
porgy tirebiter agrees
He's a spy and a girl delighter,
Orgie Firefighter! He's just a student like you. If you're looking for a Captain of the Ringball Team, You can bet he won't be there. You'll find him pa-popping off at Pop's Sodium Shoppe, Tr-trailing a red, with red hair. Doobie doo-wah...
Porgy Tirebiter!
Just a student like you!
I don't object to his thoughts on his blog, but the fact that he (and his many aliases) post a non-sensical one sentence utterance in so many threads with a link to his blog.
It'd be so less irritating if he actually, you know, put some effort into providing even a bare modicum of constructive, actual thoughtfulness into what he wrote.
What you say is true, yet still he persists with multiple aliases that don't get deleted. I hesitate to protest too much about this (hint hint, nudge nudge).
Reminds me of Dr. Hunter S Thompson......right before he killed himself.
Fear and loathing on Zerohedge.
It's Bush's racist right wing conspiracy's weather's fault
A little OT but
It appears that CNBC's new reality show of the life of steve stevens sports bookie is a total fabrication and fraud. This is what a dying network looks like
http://www.badlefthook.com/2013/7/31/4575832/steve-stevens-cnbc-money-ta...
When do they just pull the plug on the absolute shit that is cnBSc?
An average of 15,000 viewers?
10,000 viewers?
It's an open joke. They should try to spice up their ratings with clay animation "newscasters."
Either the advertisers are convinced that those 15K viewers are all CEOs, or they are willing pay for a 'MSM-quotable' platform on which to pump their propaganda. My guess is B.
Does rhe 15,000 include all the algos that hang on every word they say?
@The Vineyard
"....a sign of the upcoming apocalypse."
It probably is for some:
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2...
http://www.zerohedge.com/news/2014-02-26/morgan-stanley-warns-real-pain-...
[I suggest viewing the second link article via the printer- friendly version. (Pretty charts)]
Yeah, strap in, because it's going to get messy.
Arriving back to the USSA within a day. As soon as my wife lets me free for a few hours, it`s off to the bank ($$$ out) then my LCS (Au) and stock up on more ammo. Whee!
WATER is the big hole in my preps, but that only becomes an issue if things get really really bad.
Will things get that bad? I hope not, I think (guess!) more like a Great Depression v. 2 myself.
DoChen, where do you plan to be when we get there? I got the impression you were between Biscayne Bay and the Everglades. Water is the least of your worries. You just have an immediate need for filtration. Keep a quart or four of food grade hydrogen peroxide for bacteriologicals, first aid, and the like. Not a bad idea for hurricanes, either.
If you're in S Florida get a wellpoint and 30 ft of 1 1/4" pipe and drive your own well with a sledge hammer. Put on a hand pump.
Yep... not to worry.
The ChiCom gov't will back them up.
Just like The Fed does here.
phuck you Central Bankers.
http://www.youtube.com/watch?v=5-sqkzCir9k
here's one that slipped through fingers assholes.
In Mandarins it's "afuckarou!"
this whole thing is such a fraud.
the only thing we're missing are the actual nukes at this point.
Indifference is our only defense.
Yawn
meamwhile in the US....
/ESM4
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e-minis to the moooooon!
TheRideNeverEnds, I know what you mean. If ZH was forced to print only those articles that actually have an impact, there would be like one post a month here!!
yea, at least it gives me something to do other than watch my forex positions go immidiately and sharply against me. god damn aussi dollar, who is buying it? damn fools thats who. its going back to .65, just a matter of time.
The CBs are just engaged in scheduled currency manipulation - U.S. open/close, Shanghai open/close, Nikkei, etc.
It's all a juggling act to try to keep the popsicle stick & glue Jerry-rigged model economy from crashing.
A major crash is now being prevented by carry trade manipulations.
Good luck with that.
Shanghai 777
a regular RIOT.
https://www.youtube.com/watch?v=W3cGxlZjMWU
"Howard Cosell MC's World War III." PEEEEEEEEAAAAAAAS OUT BROOOOOOOOO'S!
Hmmm...I looked and didn't see any serious ignition. Maybe before the open ?
Yuan-a dance??
Yellen is probably on the phone now begging to bail them out.
w/ Fannie and Freddie going bust, the lenders need a new gig to pump up their Sugar Daddy. Ukraine or China would do the trick. Yellen could then create a new syndicate, the new IMF. Lagarde might get jealous of Yuana Yellen.
goddamnit.
just in november last year i was complaining what a slow news 2013 was.
Chinese Real Estate can be summed up in the phrase, Ponzi is a bitch!
A wise man once told me....
Always ask yourself.... why now?
That question has saved me A LOT OF MONEY.
Why now?
Because later would be worse?
You could save even more money, if you ask yourself why not now, from time to time ...
I bet a lot of the property development(ers) will get to squat for a long time with super-shadow arrangements...maybe until this whole super-reset blows over in a few decades. I bet there will be zombie limousine's driving all through 'dead towns' in a few years...there will be tenants...but officially 'no one is home'.
There are lots of 'unoccupied' houses in Japan where the owners 'ran away' years ago and are 'empty', but their owners are still living in them without paying any property tax or mortgages.
Dismal.
The aud/jpy is going batshit crazy though. The level of complacency in these markets is mind numbing.
Tell me about it. It's one of the only pairs I trade daily anymore. It's damn easy to pick up 20 or 30 pips every few hours of trading.
There are so many shitty developers... and a handful of really good ones. Guess which ones are gonna go belly up? Difference being, unlike previously (~5 years back), pre-sales are not allowed. Projects must be completed prior to sales being allowed.
The end of human civilization is fantastic for stocks.
BTFD (wouldn't want to miss out. This could be your last chance)
Drip...Drop....Drip....Drop...SPLASH.
Every country has unofficial lenders, but in China individuals, companies and even local governments who can not get loans from state-controlled banks have been on a borrowing binge from these unofficial sources. China is awash in overcapacity and debt.
After several years of growing debt loads concern is rising the whole unstable pyramid is about to come crashing down bringing China and possibly the global economy with it. The economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be vary painful. More on China's credit trap below.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
HK futures up and US & European futures full retrd, South Africa just hit a new ATH even with commodities in the hole...