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Special Forces Confront Chinese 'Investors' Demanding Failed Trust "Pay Back Our Money"
"We have been cheated by CCB," exclaimed one Chinese investor who invested 1 million yuan ($160k) in China Construction Bank's Songhuajing River No.77 Trust (which offered returns of 9.8 to 12% per annum). It appears that a 12% yielding financial instrument was not hint enough of the risk to the dozens of investors who confronted police in troubled Sanhxi province yesterday demanding their money back from the trust which has missed 6 monthly payments in a row. People wearing white masks with the words "despicable bank" and "pay back our money" were among at least 30 investors facing special-forces officers in dark uniforms and the group dispersed soon after the bank had asked for more time, adding "the bank said they wouldn't risk their reputation."
"Investors" are not happy that their high-yielding incredibly risky asset has the potential for loss...
Chinese investors demanding their money back from a troubled 973 million-yuan ($156 million) high-yield product in Shanxi province were confronted by police in front of a China Construction Bank Corp. branch.
People wearing white masks with the words “despicable bank” and “pay back our money” were among at least 30 investors facing special-forces officers in dark uniforms in Taiyuan city, about 521 kilometers (324 miles) southwest of Beijing. The nation’s second-largest bank is the custodian of the Songhuajiang River No. 77 trust, which missed six payments as of last month, according to the Economic Observer.
“We have been cheated by CCB,” said Wang Fengying, 60, a Shanxi resident who said her husband had invested 1 million yuan.
And here is the product...
State-backed Jilin Province Trust Co. created the Songhuajiang River No. 77 product to raise funds to finance mining projects for Shanxi Liansheng Energy Co., the biggest private coal miner in the province, according to a contract for the product obtained from Li Taishan, the leader of the investors gathering in Taiyuan.
The trust offered investors an annual return of 9.8 percent to 12 percent, depending on the investment amount, with a minimum of 1 million yuan, the product contract showed. Construction Bank currently pays 3.25 percent on one-year time deposits, according to its website.
“They told us the interest rate is three times the bank saving rate,” Wang, the woman whose husband had invested in the Songhuajiang River trust, said. “They said they wouldn’t risk the bank’s reputation. It’s our hard-earned money.”
But as Bloomberg notes...
The unrest underscores the stress in China’s $1.75 trillion trust industry as loans sour in an economy that grew at the slowest pace in six quarters.
...
Investors in the product also gathered at Construction Bank’s Beijing headquarters three weeks ago asking for their money back.
and still no payment...but
At least 20 trust products have run into difficulty making payments since 2012, according to Beijing-based China Securities Co. All have avoided default as issuers or third parties such as state-owned bad-loan managers and guarantee firms eventually repaid investors in full.
It seems the people have been 'trained' to expect the bailouts for now - but as we noted before, this can only make the inevitable reality even more dramatically bad as risk returns to the shadow banking system.
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So that's why the DHS went shopping.
They should have bought Greek Bonds.
Sorry suckers but the bogus lure of 12% per annum is no match against government thugs making guaranteed wages to crush skulls... no matter the country. Better luck next time.
What part of the words global "Bail-in" don't they understand?...
https://www.youtube.com/watch?v=u4L8QMNJyiU
The Chinese Economy is now growing at the slowest pace in 24 years - BASED ON CHINA'S OWN OFFICIALLY RELEASED DATA.
Think about that: Clinton bestowed Most Favored Nation trade status on China on May 26, 1994, or approximately 20 years ago!
http://tech.mit.edu/V114/N27/china.27w.html
I'll try to find the link regarding Chinese economic growth (or lack thereof, more appropriately) when I can (I posted it yesterday).
China is in for a good ass buggering, as are MANY "investors" such as the ones highlighted in this article.
Remember folks, the Chinese Central Bank (PBoC) created 4 times the amount of debt paper that our own dearly beloved Federal Reserve did over the same 4 1/2 year period.
"If you don't hold it, you don't own it."
Which is why owning gold and silver is not just for the rich, everyone owns some.
About every 100 years, the consumer class gets fucked over with paper moeny issued by the gov-de-jour there.
BTW, it was the Chinese that 1st introduced paper money (according to the internets).
'Reset' time required and nearing.
How long can they keep this shitshow from imploding TIS?
If you are not going to get paid back, 12% isn't enough. You should go for 14-16%.
Obamanomics/off
They should have bought MOAR GOLD !!!!!
Beware of walking into absolutely brand new, posh, investment houses and giving them your money.
or ANY investment house....for that matter
Welcome to First World Status, bitchez...you're equivalent to America now! Revel in it...
(then wash yourself off, that banker shit stinks to high heaven within seconds)
""We have been cheated by CCB," exclaimed one Chinese investor who invested 1 million yuan ($160k) in China Construction Bank's Songhuajing River No.77 Trust "
Welcome to the party, pal. To the banks, you're just FOOD.
Up the Songhuajing River No.77 Trust without a paddle. To be fair they did actually warn investors by using the word "trust' rather than "guaran-fucking-teed"...
Never mind the annual 9.8-12% trust fund return, I'll gladly take the 3.25 percent on one-year time deposit return from the despicable bank.
Holy Cow! My employer direct deposits my salary in CCB! I better get it all in cash while I can. Long Yuan.
This was an informative article. I didn't know I was suppossed to be getting 3.25 %. I've got to start learning Chinese.
The returns are 3.25% on a bank account over there because inflation is far north of that. My in-laws over there are feeling the squeeze of ground beef going from 2 USD / half-kilo (pound) to 9 USD in two years, among many other things.
While we went from $2.50 to $6 in two years..I feel their pain (really).
No worries, they just reported a 7.3% growth rate for last quarter...LOL Sucks for all those Chinese who wanted to be American.
Riceballs, ever heard of Madoff77? its ok your money was put to good use, the guy who sold the investments his wife spent on $50000 purses at Neiman Marcus
"...1 million yuan ($160k)..."
Wait, wut?...lol.
Shit. My net worth isn't close to that figure. That's a hell of alot of money to lose where you could just go a few hundred miles inland and live like a king the rest of your life. I'd be pissed too.
Location location location.
The man was trying to live above his means perhaps. Anyone not a pauper, should be aware that there are always "others" trying to get what you have, whether its a con on the street or a con at a bank ;-)
Man, the world is getting sketchier by the day.
"People wearing white masks with the words "despicable bank""
So, all crows under the sun are black.
Dude's name is "Li" that you guys are looking for. Last I heard he was headed out of China with his Bernanke bucks on a jet to Russia.
Welcome to MyRA.
"Investors" cheated by a bank?! Get the fuck out?! That must be a new phenomenon, because I've never heard of that happening once in the thousands of years of banking history. Fucking idiots.
They are going to have a rough day real soon.
I'd like a nice and rough day with Tina Turner.
http://www.youtube.com/watch?v=-UyCb2FHt_w
Ain't she currently in her late 60s, early 70s?
For us geezers, she's well preserved and has auto-respiration.
Please don't deny us our pleasures...
China has entered a great credit trap. China is awash in overcapacity and debt. After several years of growing debt concern is rising the whole unstable pyramid is about to come crashing down bringing China and possibly the global economy with it. This is not just about writing off a few bad loans. The shadow banking sector is so large that concerns exist about contagion and a domino series of defaults that might rack the economy as savers lose money. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
If they keep bailing them out, hello inflation.
Maybe the bank official can offer the "investors" a double or nothing shot if they can choose the winning fortune cookie from a bucket. All under the watchful eyes of the special police of course.
At least it ain't the ABQ PoPo
You saw the Santa Fe cop who just resigned?
"investors" no shortage of idiots on this Blue Marble. LOL, WTF did they expect? Giving their money to some one else to invest. Invest in rice, beans, and gas next time morons.
This is the stuff that usually would be great for gold demand.
The fucktards in this article are the very same people cramming gold shops. What part of this is hard to grasp? The dude lost one million yuan in a ponzi scheme.... But he's going to go out and buy gold? He done BOUGHT his gold...it's exactly the same gold he's going to offload to raise cash once his property deals start also going south.
The schizophrenia is truly staggering. In one full breath you guys can laud Chinese for being "visionaries" because they happen to be buying gold.... and fools and suckers for investing in some fund scam. I suggest they're neither. There's an open spigot of free money flooding the Chinese markets, and the lucky recipients, commies and their cronies, are plowing their money wherever they can as fast as they can.
We're still left with the same question. Do massive defaults across markets not force Chinese to start dumping gold to cover losses?
No it forces them to start dumping UST bonds and reserves instead, this then will appreciate the gold they have acquiried at unprecedented amounts over the last 5 years.
Tell me this, who in their right mind would buy gold at unprecedented amounts at $1500 + to then start dumping it at $1300 -
This is the best way China can destabalize the US without it seeming a provocation of war.....
I heard a chinese businessman recently say, the world is letting us buy gold with worthless printed paper and not doing anything about it......
This isnt real economic Bonzo, this is a scam!
Sounds like they're learning about the short end of the capitalism stick.
Riceballs, ever heard of Madoff77? its ok your money was put to good use, the guy who sold the investments his wife spent on $50000 purses at Neiman Marcus
China, to me, is all about floating pigs in the rivers. Investors are the pigs, obviously...
Long fried pork skins.
Would u like some wine with that rice?
How do you say Ponzi scheme in Chinese?
"How do you say Ponzi scheme in Chinese?"
YuSo Fukked.
"Taking it up the Yin Yang'" my Grampa says.
Censorship only gets you so far -- there will be millions like this guy -- cash to burn, no English, doesn't read uncensored news, naive as hell. Richer chinese, who can bypass web censorship and read English, must be pulling cash out of the system. Will Gordon Chang finally have his day?
I'll be happy when the people on TV laugh at "stupid Chinese" instead of "stupid Americans"
Me, too.
But the tag will be 'fuckin'mericans', and we 'mericans' will be on the menu for a number of really pissed off, war-like nations.
Bring it motherfuckers...my blade of grass is triple armed.
These are the same rocket scientists lauded on these pages day after bloody fucking day because of their "acumen" in buying gold. People fail to realize the Chinese aren't _just_ buying gold, they're buying the most fucktarded shit.... Oh, and gold. It's free money. It was either acquired through daddy's land theft, fraudulent bank loans, property swindles and defrauding employees. Oh, yeah, and they bought gold. The fucking money mania ignited by the gusher of free money is simply astounding. The scope and scale and breadth of it seems to escape people who don't get to watch these mindless mobs thronging shops day in day out buying everything, no matter how fucking senseless. Oh, yeah, and they're buying gold. As they go bust one by one hand over fist you don't think their gold stashes are going to be used as collateral to do what? All those property-speculating 12%-per annum Warren Buffets are gonna go bust as their pipe dreams go up in flames.... But they'll patiently sit in their hoarded gold?
Seems there 's no shortage of delusions going around.
Fuckface has got a point.
My wife had an episode of unhealth, I sold forty pounds (yes, fucking pounds) of silver at the bottom of the market to get her health back (and three ounces of gold). If this episode had happened a few weeks later I wouldn't have had to sell anything...but shit happens as it happens.
You can't control timing of events. But you CAN control how you fund a crisis.
And I still don't owe a God damned dime to the banking system in any fashion.
Many years of living outside the banking/credit system has felt great, until I started owning PMs.
Now I feel absolutely wonderful.
The American and the Chinese common man has more in common than most realize.
"Specal Forces". Is that, like, Pigs that ride the short bus?
I propose to set up a trust fund that yields 20% per year. Minimum investment amount is $20 Million USD.
All I would need is a few suckers... I mean investors... and I'll dissappear after the first year...