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PBOC Devalues Yuan, Injects More Liquidity As China's Banking Regulator Admits "Bad Loan Situation Is More Severe Than 2008"
AsiaPac stocks are opening mixed after the US session gains. Perhaps the biggest news of the evening is, as China's bankiong regulator has been meeting with foreign banks to express concerns over lack of risk control around non-performing loans. As CBRC said, rather stunningly honest for a government entity, "the current situation is more severe than the time in 2008 during the financial crisis." With stocks up while commodities (Zinc) limit-down, PBOC injects another CNY50 bn and devalued the Yuan fix for the 2nd day in a row.
Yesterday was a good day in Chinese stock land... with dozens of ChiNext stocks limit up...
While Shanghai Zinc was limit-down, collapsing to 5 year lows...
And Zinc is falling further...
- *ZINC DROPS 1.5% TO $1,633/MT IN LONDON, LOWEST SINCE 2010
We wonder what today will bring given that, as Bloomberg reports, China Banking Regulatory Commission has been meeting senior executives at foreign banks since mid-Aug. to express concerns over deteriorating asset quality in China, Hong Kong’s Apple Daily reports, citing unidentified people.
- CBRC MET FOREIGN BANKS OVER BAD LOANS IN CHINA: APPLY DAILY
- CBRC said the current situation is more severe than the time in 2008 during the financial crisis: report
- CBRC urged foreign banks that aren’t managing risk well enough to increase checks: report
- CBRC officials mentioned in meetings that those banks should control NPL ratio to not more than 2%: report
Margin debt in China rose for the 3rd time in 4 days...
- *SHANGHAI MARGIN DEBT RISES THIRD TIME OVER PAST FOUR DAYS
With short-selling levels on the rise.
China stocks are opening flat...
- *FTSE CHINA A50 INDEX FUTURES LITTLE CHANGED IN SINGAPORE
PBOC injected more liquidity...
- *PBOC TO INJECT 50B YUAN WITH 7-DAY REVERSE REPOS: TRADER
And weakened the Yuan for the 2nd day in a row...
- *CHINA SETS YUAN REFERENCE RATE AT 6.3721 AGAINST U.S. DOLLAR
* * *
Of course, the big news will be Xi Jinping coming to America.
The Chinese leader will land in Seattle, visit the White House and address the United Nations for the first time. His words will be parsed by economists, activists and politicians seeking answers from the world's second-biggest economy on where it stands on climate change, monetary policy and cyber espionage to name but a few hot-button issues.
Here is a quick ranking of what Americans are most worried about when it comes to China:
Charts: Bloomberg
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Just let the patient fucking die already....
Anyday now...
Let it get fucked already. Let the SHTF high up their fucking noses.
the current situation is most severe since Lehman
soon to followed by even more most severe since Lehman.
OMFG...we offshore to China the majority of our production and career employment, sell them a bunch of shit Treasuries, and teach them Keynesian alchemy economics.
Oh shit...wait...look at Caterpillar! Hey! Look over there! Yellen isn't raising rates! To the moon Alice! Tell the White Rabbit I say hello!
QE4 and NIRP coming serfs! Bend over!
"QE4 and NIRP coming serfs!"
QE4 n NIRP ain't going to make a difference to most. The Banksters and the 1%ers are not going to filter it downwards to the little people.
What we got now, is more like the Amercian Nightmare. When people with full-time jobs can't earn enough to afford housing and have to sleep in cars, so what is it gonna be like for people on part-time ?
We're worse off than slaves. At least, the slave owner provided shelter and food.
Nowadays the average working person is already a slave in everything but name, and you even gotta pay for your own food and shelter.
As I have mentioned before, sell the bounces up. In my view, wave ii up is in progress, 1985 at least. After that Lower Lows.
http://tripstrading.com/2015/09/20/sp500-my-favorite-scenario-cyclical-a...
http://tripstrading.com/2015/09/21/sp500-wave-ii-up-1985/
out of the blue it will come
"out of the blue it will come"
Mr Yellen is a gonna whipped it outta her ass.
nice way to crash US markets... now buy 20 million worth of silver...
Right on. If you don't hold them you don't own them.
Shhhh................ pay no attention to the currency war in the corner.
DE-PEG !!!!!!
Surely nobody saw this dramatic turn of events on the horizon, nobody...
Communism has gone tits up.
Wait, you're saying that central planning DOESN'T work??
Terrist.
Wait. There's still our new ally Cuba.
"There's still our new ally Cuba."
Ya mean ole Raul's agonna save our collective ass ?
I'm not sure why Xi is coming to the US, but I doubt it's for said intentions. Some bullshit is going on.
China has to make a deal with the US.
The PRC is in serious trouble.
This "visit" is not the US kowtowing to the Middle Kingdom.
No, it's more like The US has to do a deal with China. The Chi-Coms are dumping our treasuries. What was far more interesting, was what did the Saudi king discuss with the Kenyan boi. We will find out in a couple more weeks. When your largest holder of debt is in trouble, you are in even bigger trouble!
Now there is a 100% chance the Federal Reserve does QE4. Leaves rates at 0% for years.
QE4 will have to be much larger than QE3.
It damned well better be.
"CBRC officials mentioned in meetings that those banks should control NPL ratio to not more than 2%: report"
Yes, we ORDER you not to have NPLs exceeding 2%. Reality be damned. Anybody want to bet the number magically stops at 1.99%?
And while I'm on the subject, anybody belive the current NPL is only 1.5%? Me neither. Nobody hits the rocks as hard as China has with an NPL of only 1.5%. I suspect the real number is a full order of magnitude larger already.
I see the Head Priest and all these important people are going to the White House. Did someone important die and we didn't get the good news yet?!?!?!?!?!?!
Yipeee Yi Ypeee Yi Yippy yip yip yip BTFD they're gonna print.
the cny devalue leads more ust selling.
"CBRC officials mentioned in meetings that those banks should control NPL ratio to not more than 2%"
lmao!
You keyed on the same thing I did. We ORDER you not to have an NPL over 2%! Fucking hysterical.
The NPL's can pay back the loans by way of IPO. The PCB will give more credit, everyone will have visions like they're on LSD.
Just wondering how long it takes before 'Oil & Gas' gets into the negotiated pivot discussion?
Greenland is the driving force... seeing the wonders of 'global-warming' have mysteriously exposed eons of natural resources just waiting to be harvested. Strange how the AntArctica is taking up the slack. Should we become moar concerned about a wobbly axis to the south, than global-warming to the north? Or is it just gravity?!?
China needs the Arctic. Why? All the 'Rare Earth Elements' up for grabs,... that would virtually give China a lock on the entire planets 'Rare Earth Elements', both in China and the Arctic.
This is a two-fer for China's energy independence bypassing the Arabian Sea & Strait of Malacca, and say bye-bye to the Asian Pivot for now[?]!!!
China needs the USSA expertise and technology to say the least,... or they could get the Saudi's help whom happen to be well advanced in exploration and extraction, as well?!?
Ref: "Russia Sanctions, China, and the Arctic"
http://thediplomat.com/2015/01/russian-sanctions-china-and-the-arctic/
http://en.wikipedia.org/wiki/Petroleum_exploration_in_the_Arctic#Russia
"What's China doing in the Greenland?"
http://www.csmonitor.com/Environment/Energy-Voices/2013/0215/What-s-China-doing-in-Greenland
10 trillion Yuan here 10 trillion Yuan there and now you're talking real money. All hail the new reserve currency. I'm sure if they could have just get another decade of 7% yoy growth everything will be just fine.
Where mark to fantasy meets rehypothecation times 10. Hey wait a minute that sounds like the US banking system. Perhaps I was wrong, maybe the Chinese are on to something.
An article on the top of ZH yesterday had Kyle Bass being interviewed and he said basically what this article does. Nonperforming loans will continue to increase for several quarters. I have a man crush on Ol' Nickels for sure.
What is unusual is that CNBC the public website of Goldman Sachs is telling viewers to sell now which is very much not like anything I've seen in the past. Looks like Goldman wants US markets lower.
Not too unusual.
It's one of the following. In order of descending probability. .
#1 Goldman wants you to sell into their buy orders before QE4 gets publicly announced.
#2 Goldman wants you to help spook the FED into QE4 by selling while they load the boat.
#3 Goldman is short, they are still covering and would prefer you help push the markets lower so they can flip the rest at better prices just before QE 4 is announced.
.
.
#172962158 Goldman is trying to help the average retail investor place profitable trades.
Is this Chinese QE?
"deteriorating asset quality in China", no shit?
Futures down over 200 this morning? WTF is going on today? Oh the Pope is coming, maybe he's put a hex on the markets.
Climate Fraud ,, bah ahahahaahahhahhahhaah