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Widening Probe Snags Most Senior Chinese Banker Yet, Sends Stocks Lower; RBA Sparks Commodity Slide, FX Turbulence
It's a busy night in AsiaPac. The ubiquitous Japanese stock buying-panic at the open quickly faded. China weakened the Yuan fix quite notably and injected another CNY10bn of liquidity but news of the arrest of the President of China's 3rd largest bank and a graft investigation into Dongfeng Motor's general manager sparked greater uncertainty and Chinese stocks extended the losses from yesterday. Commodities had started to creep lower, with Dalian Iron Ore pushing 2-month lows with its biggest daily drop in 3 months, were extended when the Aussie central bank kept rates steady (as expected) but sparked turmoil in FX markets with forward guidance of th epotential for more easing.
Japanese markets opened in their usual glory, then faded fast...
China opened with more liquidity injections and a sizable weakening in the Yuan fix...
Probes widened with AgBank (China's 3rd largest bank) President arrested...
The president of China’s third-largest bank has been detained, local media reported on Monday — the most senior bank official to be swept up in President Xi Jinping’s sweeping anti-corruption campaign.
Zhang Yun, president, vice-chairman, and deputy Communist party secretary of Agricultural Bank of China had been “taken away to assist an investigation”, Sina Finance and QQ Finance reported, using a known euphemism for corruption arrests. QQ cited an AgBank employee saying that Mr Zhang had been arrested on Friday and that executives had held a meeting late into the night to discuss a response.
Mr Zhang is the most senior banker to be ensnared in China’s anti-corruption probe.
In January, then-president of midsized Minsheng Bank, Mao Xiaofeng, was arrested in an investigation linked to a top aide to former president Hu Jintao. Days later Lu Xiaofeng, a board member at Bank of Beijing, was also arrested.
More recently, police arrested the general manager and several other top executives at Citic Securities, China’s largest securities brokerage, for insider trading linked to the big fall in China’s stock market this year.
Local media also reported on Monday that a famous hedge fund manager was under arrest for insider trading.
And Dongfeng Motors general manager facing graft charges...
A general manager of China's Dongfeng Motor Group is being investigated for suspected corruption, the country's graft watchdog said on Monday.
Zhu Fushou was being investigated for "suspected severe violation of discipline", the Central Commission for Discipline Inspection (CCDI) said in a statement on its website. Discipline violations generally refer to corruption.
All of which follow the weekend's extraordinary actions around Xu Xiang and the Zexi Fund - whose holdings (below) are all under more pressure again today (amid liquidation fears)...
- Guangdong Electric Power
- China Gezhouba
- Guoxuan High-Tech
- China Sports Industry
- Shanghai Metersbonwe Fashion
- Eastern Gold Jade
- Founder Technology Group
- Shanghai Tofflon Science
- Hareon Solar Technology
- Fujian Rongji Software
- Anhui Xinlong Electrical
- Shenzhen Desay Battery
- Anhui Xinke New Materials
- Jiangsu Alcha Aluminum
- Tianjin Saixiang Technology
- Jinzi Ham
- Guangdong Eastone Century Tech
- Nantong Jiangshan Agrochemical
- Guangzhou Lingnan Group
- Hangzhou Cable
- Xiamen Academy of Building
- Ningbo Kangqiang Electronics
- Fujian Haiyuan Automatic
- Tieling Newcity Investment
- Ningbo United
- Elec-Tech International
All of which sparked selling pressure in Chinese stocks as recent re-leveraging was unwound for the 2nd day in a row...
China is in big trouble...
????????????“?”? ??????????!! 4 BIG SOE banks 3Q net profit "Zero" growth, employees are queuing up to resign.
— Simon Ting (@simonting) November 3, 2015
And then RBA decides, as economists expected, not to cut rates
- *RBA LEAVES KEY RATE AT 2.0% AS SEEN BY MAJORITY OF ECONOMISTS
- *RBA: FINANCIAL MARKET VOLATILITY ABATED SOMEWHAT FOR THE MOMENT
Which extended commodity losses...
But of course fed the crowd some forward guidance hope:
- *RBA SAYS INFLATION OUTLOOK MAY AFFORD SCOPE FOR POLICY EASING
- *RBA: SUPERVISORY MEASURES HELPING CONTAIN HOUSING RISKS
This erased Aussie stock gains and sparked chaos in the FX markets - despite the "no move" being expected...running stops high and low before settling back unch...
One wonders who knew what early? Just like last time (and will the regulators get involved again)
And US equity futures are drifting lower as USDJPY rolls over and Apple fears rise on Pegatron hiring freeze...
Charts: Bloomberg
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Suck my dick.
And feed a tit.
Well, global pie of demand is collapsing all over the world due to household debt deleveraging, loss of jobs, incomes of the world working people under the boot of global rentiers/oligarchs who monopolized global economy and are chocking it to death as we speak. Sadly even Chinese elites joined in the fray of greed.
More about global trade collapse and secular decline of the global economy can be found here:
https://contrarianopinion.wordpress.com/economy-update/
I just found a 1916 D PGCS AU FB winged liberty mercury dime for sale. That one is going $11000. I brought 12K cash to the last coin show but that was for many coins and some of the Russian coins I collect. That coin is in California. They sent me two warnings. I could buy eleven cars for that price. I can't afford that shit for a dime but those coins are appreciating in value. You just won't find that coin out there laying in the parking lot.
You do not see that coin very often in any condition. It is 11K in AU!!!!(about uncirculated) I have the cash but I don't collect mercury's and then I would be out of cash if I bought that coin. And then you have to collect the rest of that set which is not cheap. I already bought a 1916 D dime this year anyway. I had to help my nephew complete his collection and that coin was not cheap. It was the most expensive coin I have ever bought and it wasn't even for me.
L&C coins is where it is at. I am not going to link it because you are all grown ups and if you are willing to lay down that sort of cash you don't need a link because you probably already knew anyway, I want that coin but I can't justify it. I am not ready for an $11000 coin. I have some four figure coins but not anything $11000. Some ZHer needs that coin. It would be cool as hell if one of us gets that coin.
That coin or a signed Picasso lithograph
I prefer proof coins myself got a few lovely platinum sets but right now I'm digging Matisse papercuts
Nothing wrong with that. Picasso was so outstanding to see when I was in St Petersburg at the Hermitage. I really enjoyed Monet. Those paintings were amazing to a redneck hillbilly like me. Holy shit, that was a lot of paint. We could have saved a lot of paint and got a lot better coverage if you didn't put it on so thick. You just have see those works in person to apppreciate it. Malevich? I started to get worried that I would become cultured and not be such a redneck.
They have a few coins in the Winter Palace that are special but they do not have the ones I have. No one would even know how to fake them. I am playing a different game. I have some coins that might be the only ones known in the Western Hemisphere but they are not $11K coins, I can't tell you what they are really worth and that is what makes Russian so hard to collect. Dropping $11000 is not something I would do for a dime.
That Mercury is very interesting and L&C has been fair to me. That is the kind of coin you drive to see. Not too many ZHer's have a graded 1916 D Winged Liberty dime. I KNOW FOR SURE that they don't. How about an 1885 liberty head nickel? Does anyone around here have one? The answer is no they don't. I do but it is not a great coin but it is worth a few bucks.
I guess I am supposed to buy STAWKS. No thanks.
Nobody knew what early.
It's just the manipulators took the advantage of an announcement (whatever the announcement and its significance) to carry out the manipulation.
It's just like this...
"Stocks are selling off sharply. Why? Because Ali Baba just jumped from a tall building."
And this...
"Stocks are rallying up sharply. Why? Because Ali Baba just jumped from a tall building."
You got that?
The announcement does NOT matter.
What matters is the manipulator does not want anyone to realize the market is actually under pure manipulation, with no reason whatsoever other than the reason to manipulate.
Wouldn't be great if corrupt banking officials were arrested in America? Won't happen. They have too much clout.
Different story in China. No Jews.
are they presenting Nikkei futures trading, as if the market was open? uh, Tokyo was closed on Tuesday guys
18T of debt, 4.5 T on balance statement. does any of this mater? I think not...
What does mater is the control it give the fed by creating moar fiat from thin air.
end the fed to find reality, b/4 reality vaporizes the middle class completly...
bravo china. we in the usa have about 99K maggots in desperate need of incarceration, reeducation, then execution. we should outsource our federal police force.
sad when you have to look to China for a rule of law. How is Jon Corzine by the way