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China "Disappears" More Bank Executives As Witch Hunt Intensifies
“Chairman of Guotai Junan Int'l, 1 of China's largest brokerages, is "missing"; company said can't find him”
Regular readers are likely familiar with the quote excerpted above, but for anyone who might have missed the original story, that’s from George Chen and when it hit Twitter late last month we couldn’t help but laugh because after all, it’s not every day that a publicly traded company comes out and says they can’t find their CEO.
As strange as the statement might have seemed to the uninitiated, for those who’ve followed China’s equity markets this year it wasn’t hard to imagine what might have happened to Yim Fung.
Beijing is the midst of a truly epic witch hunt aimed at tracking down and detaining what officials say are “malicious” short sellers and market manipulators who allegedly played a part in the meltdown the hit Chinese stocks at the end of the summer. The campaign - dubbed “kill the chicken to scare the monkey” after a Chinese proverb - is really nothing more than an attempt to coerce market participants into acting in a way that’s conducive to stock charts that go “up and to the right.”
As it turns out, Yim was indeed ensnared by authorities in connection with the arrest of CRSC vice chairman Yao Gang. Well, less than a week later, a number of media outlets reported that Beijing had launched a new round of investigations into at least three brokerages. Here’s what we said at the time:
It appears that after a period of relative calm, the Politburo is set to once again crackdown on any type of "malicious" behavior that Beijing thinks contributed to declining stock prices (remember, China isn't a big fan of the whole "stocks can go down as well as up" thing, which means arresting anyone suspected of selling or, in extreme cases, halting the entire market). On Friday, the SHCOMP plunged nearly 6% after Citic Securities and Guosen Securities disclosed regulatory probes. Shares in both brokerages traded limit down on the news. Haitong Securities', which is also facing an investigation, had its shares suspended.
Both Citic and Guosen said the new probes centered on alleged "rule violations." "The finance crackdown has intensified in recent weeks and ensnared a prominent hedge-fund manager and a CSRC vice chairman," Bloomberg notes, adding that "Citic Securities President Cheng Boming is among seven of the company’s executives named by Xinhua News Agency as being under investigation."
That was on November 27. Over the weekend (so just over a week later), two Citic executives apparently suffered the same fate as Yim Fung because as Reuters reports, the broker can’t find two of its top bankers.
“CITIC Securities is not able to contact two of its top executives, China's biggest brokerage said on Sunday, following media reports that they had been asked by authorities to assist in an investigation,” Reuters says, adding that Jun Chen - Citic’s head of investment banking - and Jianlin Yan - who runs investment banking at the company's overseas unit - have been unreachable since at least Friday.
As is usually the case when Beijing "disappears" some folks, no one is sure whether Jianlin and Jun are implicated in the probe or whether they are merely "assisting" authorities. Here's Reuters again: "Chinese business publication Caixin said on Friday the pair had been detained, although it was not clear whether they were subjects of an investigation or merely being asked to assist with it."
Late last month, Citic announced that chairman Wang Dongming would step down "in consideration of his age," but the ubiquitous "people familiar with the matter" say he was forced out for failing to stop insider trading. "Citic used its own balance sheet to buy stocks as part of the rescue effort and also executed trades on behalf of other national team entities," FT reports, referencing China's so-called "national team" which the PBoC used to pump some CNY1.5 trillion into the market. "Citic executives are alleged to have used information about which stocks the national team intended to 'front-run' for their own accounts."
So who knows where Citic's executives are being held or why they're being detained, but what seems clear from Fu Zhenghua's (read more about Fu, the man at the heart of Xi's crackdown, here) increasingly aggressive campaign is that the Politburo fully intends to make an example of quite a few people that were involved in the sweeping effort to prop up the market.
Whether this represents an honest attempt to root out corruption or whether the idea is simply to intimidate the market on the way to ensuring that everyone toes the line going forward is unclear but one thing we do know is this (to quote a director at an international brokerage in Hong Kong quoted by Reuters last week): "At the moment, if you don't do what the CSRC asks you to do, there will be blood."
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Making bankers disappear? They're doing God's work...
I've got a great idea...
Let's trade China our EPA in exchange for their Bankster Hunters. Both of our countries will be cleaned up in innumerable ways.
Perhaps TRUMP can "negotiate that deal"; NOT! Thumbs up to you for the humor!
All your rebelliousnessisms are belong to us.
If you are being "detained" and it's overnite, you are probably not "assisting".
In Mandarin, it's "assisting".
In Cantonese, it translates to "Bang Ding Ow".
When we get rid of the EPA you can finally have that Beijing smog right here in America.
... and access again to that designated "wetland" in my yard after it rains.
And the freedon to buy those great Changfa diesel engines!
I have 4 Changfa generators in my barn, total contraband, I live in Kalifucya.
Those Chinese are wicked smart! Why didn't we disappear some banker fucks after 2008? There wouldn't be so much bullshit happening again. Those pussy farts would've been scared shitless and stopped fucking around and stealing from the country. Praise be China.
Bangin7GramRocks Why didn't we disappear some banker fucks after 2008?
"The American way of life is not negotiable." — 1992 Earth Summit in Rio de Janeiro. George H. W. Bush
It's not negotiable, not at all. Neither is Russia's or Norway's.
And neither is your life, if thats the way you want to live it. Nobody is preventing you from living in a grass hut if thats what you want.
However, if you try and force me (or others) to live in a grass huts then we've got big fucking problems don't we?
Unfortunately, few want to live in huts and caves.
And more want to live like Americans.
Talking about an evolutionary trap.
Unfortunately for who...you or Moan Chomsky? ;-)
Psychopaths turning on each other!!!
Things must be bad.
Trouble is there are bound to be a few left.
Their bankers are all here. Who do you think buys all that overpriced California Property?
The cougar approves. And I don't even care what their internal motivations are, this is flat approved. If the global economy is at all going to survive we need to see about 80,000 such people vanished from every corner of the banking and investment system. Banned for life.
"Late last month, Citic announced that chairman Wang Dongming would step down"
They were Wang Dongminged.
Oh please why God Why can't there ever be an active shooter drill at all the big bankster offices simultaneously............ seems like a legit real world scenario........... no?
65 at one time plus 1, the BIS.
Just remember this; the PBoC is part of the BIS - enough said.
i really wish the chinese ran the fbi and sec in the usa. i'd give anything to watch those maggots get re-educated old school.
Put them in jail, then they dug a tunnel straight through the earth to Vancouver.
+1 <<< Disappear US BANKERS
<<< US BANKERS ARE GREAT!
VOTE FREELY!
This is a great idea! LETS disappear our BANKERS! What a wonderful world this could be! Lets vote on this one!
OMFG someone thinks us bankers are great? We are going to get what we deserve. This type of stupidity is just not funny, its scary.
3 -1 BANKERS HOLY FUCK? is this a bankers site?
Dimon, Blankfein and Mack are voting down.
""We participated in things that were clearly wrong and have reason to regret … We apologize."
- Remarks at the National Association of Corporate Directors in New York City, where Blankfein was honored as CEO of the year on Nov. 17"
"I know I could slit my wrists and people would cheer."
- Blankfein asserted his awareness of the public's disgust with bankers in a Nov. 8, 2009 article by the Times of London. He went on to say that banks were part of a "virtuous cycle" by helping companies grow by helping them raise capital, thus allowing them to hire new workers"
http://abcnews.go.com/Business/dimon-blankfein-mack-notable-quotes-wall-...
I think ya cornfused them...
Probably giving the "Bankers are great" statement the thumbs down...
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Ok I see! THANK GOD! I was worried.
I'm a bit perplexed.? How are offshore, and institutional investors able to get out of the Chinese markets?
Even if you're vested through Hong Kong, there should be major disparities between volume ,breadth, and arb costs with the mainland.
Is the PBoC allowing the large macro foreign firms to quietly withdraw from funds, and threatening their own internal market makers?
Even overseas firms have to use Chinese clearing houses to some degree. Something smells fishy...
Yeah, Chinese yuan will replace the USA dollar any day now, they are clearly ready to be global monetary leaders.
It wouldnt take much.
Perhaps it could be Bitcoin.
It kills me to admit that Bitcoin will probably do better than I want it to.
Why wait?
Get there before the herd figures it out.
Maybe they fled to CA or NY to manage their vast real estate holdings.
Maybe he lives in a remote area in the middle of the Chile mountains, accessed by a small aircraft.
He would live like a king for the rest of his life.
All that Chinese pollution packed into his lungs and then up to a new life at 10,000 feet?
The rest of his life is going to be over before the first network series cancellations take place.
Where is John Galt?
He's the guy manning the flamethrowers.
This isn't the new and friendly China.
It's still the red commie one party slave state it was in the past.
Vice Public Security Minister Meng Qingfeng: "Wut? I didn't see anything!"
"China's largest broker - says it cannot find two of its most prominent investment bankers."
Give a fuck! Whose is gonna miss a couple more fraud masters seeking to live off of skimming the real economy of hard earned wealth.
Banker liver goes for a lot of money I hear, people serve it at holiday parties as a delicacy. Those banksters were probably Goldman Saxing or maybe some espionage, certainly treason... who knows, they need to come pick up the rest of them over here.
Unlike China, in the U.S., we've become quite accustomed to our own markets being manipulated up the ass - day in, day out and EVERY fucking day. See - here we don't care because everything is still fucking awesome!
Next time they will quit before the stock market peaks.
ZH tries to make bankers being arrested to be a bad thing. America should start arresting them for their crimes instead of letting them collect their multi-million year end bonuses.
Ever wonder why there no Jews in China?
And what a wonderful place it is.
After all China is a place hosting and feeding about 1,400,000,000 mouths. They should never allow some individuals -- whoever they are -- to play foul on that country and risk ruining the livelihood of the so many other millions!!
Seeing now how the Europe is facing huge problems in just accomodating the influx of about 1 million headcounts, can one really imagine what happens to them if instead 100,000,000 people flock into the Old Continent :-) they're preaching very hard on democracy, freedom, human rights, bragging about those few notions but never touch the real matter on how to provide the decent livelihood on over 1,000,000,000 people.
Can one imagine if the US must host the additional 100,000,000 people let alone another 500 mio? lol
A good picture to imagine on how to manage the livelihood of that many people if not being done neatly is to look closely at India, the touted largest democratic nation on Earth.
The unchecked greed in accumulating material wealth is indeed destroying the many nations and the Mother Earth... I shed no tears in seeing all the greedy creatures being swept away... quickly!
There is more social justice in Communista China than in the fake western democracies . In the west Bankers expert in looting countries and impoverishing them are promoted to become Prime Ministers of countries ....... see Monti in Italy. Others become chiefs of the EU ..... see Draghi . Well done China !
I fully agree. In our "democracies", bankers are exempted of everything save their megabonuses and gigawages.
Awesome.