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Artist's Impression Of China's Soft Landing

Tyler Durden's picture




 

The following clip seemed to sum up perfectly just what The PBOC is attempting to do (and just exactly how it will end). With Chinese equities entirely decoupled from any sense of fundamentals, elementary-school-educated people piling their life savings into a market that is up 100% YoY amid the worst economic conditions in a decade or more, and margin trading that is surging (and now being probed - as Reuters reports, PBOC Shanghai has asked banks to check margin trading risks); how could anything go wrong?

 

There's this... fun-durr-mentals...

 

And then there's this...

 

Which was followed by this tonight (from Reuters)

The Shanghai branch of China's central bank has ordered commercial lenders to check for risks in their margin trading business, according to a memo obtained by Reuters.

 

The move comes after margin trading soared among brokerages, prompting regulators to clamp down on risky behaviour earlier this year.

 

The People's Bank of China (PBOC) ordered commercial banks to provide their margin trading accounts and a list of connected wealth management products (WMP), according to the document and two sources with direct knowledge. This was supposed to have been completed by the end of March.

 

As China's economy faces its slowest growth for a quarter-century this year, the country's banks made 1.18 trillion yuan worth of new loans in March, beating expectations as authorities ramped up efforts to dampen the impact of sluggish expansion.

 

In the second half of 2014, margin trading increased rapidly in Shanghai and Shenzhen, with data showing that banks are one of the main sources of margin finance funding, according to the memo. As a result, there was a need to ensure the business is transparent and control risks, it added.

 

The PBOC asked commercial banks to report risks and the measures that they will adopt to handle them.

Which made us think of this... So close and yet so far

 

"We got this... oh wait a minute... oops"

*  *  *

Deja Vu all over again?

 

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Wed, 04/15/2015 - 22:35 | 5997358 Intelligence_In...
Intelligence_Insulter's picture

Is the chat down?

Wed, 04/15/2015 - 22:36 | 5997361 the great rift
the great rift's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Wed, 04/15/2015 - 22:45 | 5997394 dumdum
dumdum's picture

 

 

I'm making $30k a month as a whore. Jam your $7k up your ass.

Wed, 04/15/2015 - 23:32 | 5997553 BringOnTheAsteroid
BringOnTheAsteroid's picture

Anyone know how to perform a denial of service of this piece of shit website

Thu, 04/16/2015 - 10:07 | 5998522 roddy6667
roddy6667's picture

They should nail it to a long board first.

Thu, 04/16/2015 - 01:12 | 5997758 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

please stop posting links to your bullshit website. What are you a piece of shit NSA employee?

 

Thu, 04/16/2015 - 01:01 | 5997732 OldPhart
OldPhart's picture

I, for one, find it fucking impressive that Spacex found a postage stamp in the middle of the ocean and damn near landed on it.

Eventually, they're going to find out how to do it and it will become routine and unremarkable.

Thu, 04/16/2015 - 22:55 | 6001631 garypaul
garypaul's picture

Chemical rockets have been being built since before your grandfather's time. WTF is so impressive about 100 year old technology? And do you really think putting a few tons of explosives inside a narrow tube will ever be safe? I suggest you ask NASA how that goes.

Wed, 04/15/2015 - 22:44 | 5997387 q99x2
q99x2's picture

It looks impressive.

Wed, 04/15/2015 - 22:44 | 5997392 angel_of_joy
angel_of_joy's picture

They learned it from "the best", so what's the problem ?

Wed, 04/15/2015 - 22:55 | 5997420 Intelligence_In...
Intelligence_Insulter's picture

Buying on margin? does China have circuit breakers like here in the U.S?  

Wed, 04/15/2015 - 23:03 | 5997458 cassotto
cassotto's picture

very willing to go short, but how can one time a short in parabolic markets?

Wed, 04/15/2015 - 23:20 | 5997516 dumdum
dumdum's picture

 

 

Take my word for it, it's not worth it. I tried it in the silver market when it went parabolic. I shorted silver futures and lost a shit load. Markets can remain insane a lot longer than you can remain solvent.

Wed, 04/15/2015 - 23:27 | 5997535 NoWayJose
NoWayJose's picture

Best to nibble but keep dry powder in case you nibbled early. I think China is at the point of froth so I grabbed some YANG today. If PBoC tosses out stimulus their market could go higher, but the I don't see them throwing gas on the fire.

Wed, 04/15/2015 - 23:09 | 5997477 Karaio
Karaio's picture

Movements in US $.

I've sung the rock on it.

US / EU indicators include transactions in US $ / Euro.

They forget that other currencies are exchanged between China, Russia, Brazil, India etc. .

A China decreased by $ is not necessarily on the floor a drop in the Chinese economy.

hehe.

Wed, 04/15/2015 - 23:17 | 5997504 Weaponized Innocense
Weaponized Innocense's picture

Hahahahaha hahaha
Yang is cheap enough for a nibble even if it ain't the bottom of getting my yang on to go with all my other goodies so many yummies in my rattlesnake portfolio...
But I'm still sure China can do some big time parabolas a chine markets never go down u know (wink wink) on how low u can go estimates in fudged gains.... Still got more stimulus right and got printing and everyone to get on 39X margins and have they started the high priced merging for too big to fail good shorts if the markets haven't merged with dark matter in Kiki's world where numbers don't matter in all the pretend in her good news is bad news gov get more money evil voodoo dollhouse of passion assassins lover pâténted endless echoing hole to hell as entertainment in ur two way mirror glass box they keep u in slave economy for the dicklick beltway.
Yang is cheap so what it goes to three or two for more nibbling...

Wed, 04/15/2015 - 23:32 | 5997552 NoWayJose
NoWayJose's picture

Tim Seymour had a call today to sell FXI - the China 25 ETF

Thu, 04/16/2015 - 00:11 | 5997646 Weaponized Innocense
Weaponized Innocense's picture

Maybe get long term tax rates.... Might not be the low but long term tax rates for first might not be the high nibble sells for some cash

Wed, 04/15/2015 - 23:55 | 5997612 Karaio
Thu, 04/16/2015 - 00:23 | 5997665 Weaponized Innocense
Weaponized Innocense's picture

And if the tidal waves set in place as the black swans begin to matter in selective distortion so far double standards and the parabola corrects earlier than come in a chinese parabola can get bigger than that because if anyone know parabolas it's s the chinese then it is also considered and insurance don't let it get away from u purchase which otherwise is a lovely long term for a way before the top nibble sale for some extra cash before the fruit has ripened.

Thu, 04/16/2015 - 00:45 | 5997713 Schmuck Raker
Schmuck Raker's picture

Not bad. I can't do that.

Thu, 04/16/2015 - 03:44 | 5997903 Tapeworm
Tapeworm's picture

This state of affairs is easy to figure out.

 The property boom in China died as that bubble is dead. Not being any action there anymore, the gamblers moved out of properties and into the last remaining casino--- The Stock Market.

Thu, 04/16/2015 - 10:10 | 5998538 roddy6667
roddy6667's picture

I recently took a 1000 mile road trip inside China. Construction and sales are still going gangbusters in every city. Don't believe articles written by people who haven't spent a lot of time in China.

Thu, 04/16/2015 - 04:05 | 5997917 BoPeople
BoPeople's picture

They have learned many lessons from the west. And now, when the bankers crash the markets, the Chinese people will go back to being slaves who are dependent on the government and business cronies.

Independent wealth is not allowed... only captive, crony wealth.

Thu, 04/16/2015 - 04:35 | 5997939 roddy6667
roddy6667's picture

"Worst economic conditions in a decade". What a crock.

Ask anybody, peasant, middle class, or rich...Are you better off than you were a year ago? Are you better off than you were ten years ago?

In China you get a resounding Yes!

Try that in America.

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