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Chinese Officials Say "Unnecessary To Be Anxious" About Economy As Margin Debt Rises Most Since June Bubble Peak
As everyone opined on China's 'goldilocks' GDP data all day long, perhaps the biggest news this evening was US Treasury's softer stance towards China's currency 'manipulation', as we noted earlier, saying Yuan is merely "below appropriate medium-term valuation," and sure enough offshore Yuan has strengthened since the report. China's 'official' mouthpiece Xinhua told the people it is "unnecessary to be anxious about China's economic growth." And finally, for the 8th straight day, Chinese margin debt rose today to its highest in over a month. This is the longest stretch of releveraging in 4 months - since the peak of the bubble. "Will they never learn?"
He's back...
- GEITHNER: YUAN CAN BE SIGNIFICANT RESERVE CURRENCY IN LONG TERM
- *GEITHNER: CHINA CAN TRANSITION ITS ECONOMY WITHOUT CRISIS
Offshore Yuan is strengthening since US Treasuries Yuan Report...
But PBOC weakened the Yuan fix for the 3rd day in a row...
- *CHINA SETS YUAN REFERENCE RATE AT 6.3614 AGAINST U.S. DOLLAR
Another day, another liquidaty injection...
- *PBOC TO INJECT 25B YUAN WITH 7-DAY REVERSE REPOS: TRADER
And then the China propaganda flowed:
It is unnecessary to be anxious as China’s economic growth in the first 9 mos. was within expectations and adjustment directions, the official Xinhua News Agency says in a commentary on website.
Chinese economy has enormous growth flexibility, market space and leeway
And ironically, given the worst GDP print in over 6 years (and a 10 year low in Industrial Production)... Officials aid economic fundamentals are unchanged...
Positive economic signs are increasing and economy has momentum, Xinhua reports, citing a meeting by the National Committee of the Chinese People’s Political Consultative Conference.
Equity markets are lower (modestly)
- *FTSE CHINA A50 INDEX FUTURES FALL 0.2% IN SINGAPORE
Shanghai Composite has retraced 50% of the post-Devaluation plunge...
As US Futures drift on the back if IBM's collapse... (Dow -50 points)
Weak China GDP sparked weakness in Aussie miners overnight and that is extending in today's market (following Glencore's tumble)...
And finally, it appears another crash is needed to remind the Chinese of the perils of levering up in a bubble...
- *SHANGHAI MARGIN DEBT RISE HITS LONGEST STRETCH IN FOUR MONTHS

"Will they never learn?"
Charts: Bloomberg
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?No Ang Xi Teh?
everyone PLEASE remain CALM!!
Ancient Chinese Timmah says "turbotax bad. me good!"
I thought Geithner was doing ad's for TurboTax these days?
No. thats the cadre of 9/11 era neo-cons like lindsay graham, juliani and chertoff making the paid spokesmodel rounds for cybersecurity companies and at the exact same time on MSM saying they never used email ahead of Hillaries Bhenghazi hearings.
"Can" "long-term" ????????
Those are detensifiers, Tim. Grow some fucking balls, would you? How about:
"Yuan will be the reserve currency within the next 20 years."
That's a stronger statement...a congruent one with testicles that produce androgens instead of debt-based prostaglandins and phytoestrogens..
If Timmy is back on the scene. Something very bad cannot be far away.
The last chick I banged said "dont worry you can bust one in me".....scary language.
Xi was received in London as royalty, British begging for Chinese investments facing economic and housing collapse.
But Chinese want to use London instead of New York to sell their Yuan denominated treasury bonds in huge quantities to begin dedolarization of global securities (after commodity trades) and establishment of Yuan as a reserve currencies, meaning they never recall those Yuans home as the US did not recalled dollars. US got slapped in the face for those south Chine sea rants. UK and Australia refused to join neocon fanatics to poke Chinese panda bear on steroids. Say hello to miltipolar world.
It means that China "reluctantly" enters imperial path after economic model that was based on export of goods and commodities was exhausted due to destruction of global demand driven by pauperization of the western population, collapsed to be replaced by the export of Chinese capital instead in a framework of AIIB and beyond. The crude oil futures and spot price benchmark denominated in Yuan at Shanghai commodity exchange to be open soon.
I hope Chinese realizes that world did not just accept the green back as a currency reserve, it took a lot of gunboat diplomacy to achieve that. Are they ready for it?
More independent take on China raising power I found at:
https://contrarianopinion.wordpress.com/economy-update/
China established herself as a major economy playing under the Western rules, but outside Western dictates. They did so to prove a point, that China can win no matter who made the rules. But they have yet another point to make, that unlike the West, China stands for a just world economic order and that China has no interest in using military power to advance the economic interests of China. This they will make when the New Devlopment Bank (BRICS Bank) starts issuing a gold backed currency for international trade settlements.