China Contagion Spills Over To Hong Kong Banks As HIBOR Explodes To Record High, Stocks Tumble
Chinese stocks are trading at the lows of the day after Overnight HIBOR rates (Hong Kong's interbank borrowing rate) exploded a stunning 939bps to a record high 13.4%. It is clear that banks are utterly desperate for liquidity and/or are extremely concerned about one another's counterparty risk. This has dragged HSCEI down 5% (to its lowest since Oct 2011).
Something just snapped...
Evidently the pressure between On- and Off-shore Yuan was too much for banks to bear...
Smashing Hang Seng China Enterprise Index down 5% to its lowest since October 2011
But US equities are being bid by an invisible hand once China closed for lunch...
Chinese Default/Devaluation risk just jumpe dback above 120bps (highest since August collapse)
As we explained earlier, as Asian markets opened (ahead of the Yuan fix), they were in turmoil with FX markets crashing (JPY rallying as carry trades unwound), equity markets tumbling (Dow, Nikkei, and China A50), commodity carnage (crude and copper carnage) as Gold and bonds were bid. With offshore Yuan sliding ahead of the fix (and Onshore Yuan 3 handles cheap to Friday's fix), CFETS RMB Index dropping below 100 for the first time, and following Friday's 'token' stability, The PBOC decided to hold Yuan Fix practically unchanged for the second day. USDJPY and equity markets jumped on the news, then quickly faded.
We have seen this "stability" before...
Asian stocks collapse to lowest since October 2011...
Chinese media is pushing rumors of rate cuts and urging people that they do not need USD (despite the lines we noted earlier) demanding theyhave more patience... (via People's Daily)
More patience is needed for the Chinese economy which is in a transition period, as it transfers from old to new economic growth drivers while also facing a backdrop of a slowing global economy, the People's Daily reports citing academics. It would be too opinionated to judge that the Chinese economy would suffer a hard landing based on short-term fluctuations as many factors have had an impact on the yuan's recent depreciation and the stock market's falls.
"The fundamentals of many economic crises is the psychological panic problem, and we need to take good care of the market and foster new drivers; conclusions on the Chinese economy can't be made in a rush based on the short-term or partial changes," said Zhang Tiegang, professor at the Central University of Finance and Economics.
Yeah - all psychological.
Offshore Yuan was tumbling before the Fix...
As were Chinese stocks:
- *FTSE CHINA A50 JANUARY FUTURES SLIDE 3%
Of course, The Keynesian have a solution for all this...
- *STIGLITZ: RECENT CHINA MARKET VOLATILITY ISN'T CATACLYSMIC
- *STIGLITZ: CHINA NEEDS DEMAND BOOST TO AVOID DEEPER DOWNTURN
It's that simple eh?!
The reaction to PBOC "stability" is not good:
- *MSCI ASIA PACIFIC EX-JAPAN INDEX DROPS 1.7%, EXTENDING LOSS
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.7% TO 3,131.85
And Dow futures jumped 80 point and then dumped 100...
Chinese stocks are tumbling...
And ChiNext is now down over 21% YTD...
* * *
As we detailed earlier, markets were turmoiling into the China Fix...
China ripples may be turning into tsunamis. As FX markets creep open, something serious must have snapped. The South African Rand just crashed 10% - the biggest single-day drop since Lehman - to new record lows. At the same time, carry trades are being unwound en masse, smashing USDJPY down to 116.75 (strongest Yen in a year). Somebody do something!!!
The South African Rand crashed 10% to a record low against the USD of 17.9169. This 10% collapse is the largest on record outside of the immediate post-Lehman move...
Don't forget - As goes the South African Rand, so goes The World?
Korean Won plunges to its lowest since July 2010...
And Yen is surging...
Smashing Nikkei futures down over 500 points from Japan's close....
As USDJPY tumbles so US Equity markets are slumping...
And crude is carnaging...
Copper flash-crashed at the open and is now retesting...
It appears people were expecting some Chinese intervention over the weekend... and so far have been disappointed.
For now, Gold is bid as a safe haven...
Charts: Bloomberg
(43 votes)
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Except that the "Big Bang" is some fantasy alleged "scientists" cooked up out of nowhere to try and explain our existance as well as fraudulent, simean hookers can while Lehman was a stealth mushroom cloud until it was allowed to be seen.
Shitty, shitty, analogy... Oh, wait ;)
Think of it like this: If you've ever had simultaneous explosive diarrhea and projectile vomitting, the kind that forces you to choose which one you'd rather scape off the wall in front of the toilet, then I'm guessing at some point you deemed it prudent to note all source of food that you consumed leading up to the event. So the next time you find yourself driving by one of those places, you can be on your guard.
so, could it be- you are what you invest in?
Don't patronize me or reply to one of my posts again you insipid fuck.
I was just making a joke. I didnt realize that you were such an insecure little bitch. Go cry in a corner little girl.
Take your own advice and next time you want to inflict your self-congratulatory, thespian talent on me, please reconsider keep it in your ass.
Is "thesbian talent" supposed to be an insult?
Your butchering of the spelling certainly is. Good luck with that.
Your butchering of the spelling "existance" does not go unnoticed.
At least shave the organic cucumber next time you shove it up your ass. Tends to glide a little smoother.
What a 'fuck-job' you are!
Oh, the compliments...
Hey, I know it's difficult for those somewhat deranged but keep your fantasies to yourself you perverted fucking douchenozzle.
Calling someone else a fuck-job while suggesting what you did...
Classic.
My hypocrisy was only based on a spelling mistake... Yours is based on somewhat violent sodomy.
What the proverbial fuck does that make you, Mr. Sack of Human Shit.
You have sat through over 9000 revolutions of meatspin, you sick fuck.
Well, yet another hypocritical, sick, fuck consumed with fantasies of sodomy. Nice one, fuckwit!
My spelling mistake is looking pretty good amidst a bunch of anally-obsessed psychopaths...
So what meds are you supposed to be taking or did you not refill? I actually have some expertise in this.
Take a deep breath and do a reset...then go find the right meds.
You're a genius, I can tell...
and you're an angry elf.
Did your useless football team loose this weekend or are you always a vapid cunt?
Is that the best you can do, my football team?
I'm not sure but I believe you forgot references to sodomy somehow satiating your own ego?
Fuckwits, BTChez
The market is all psychological. My diagnosis is deep depression.
I am thinking ditch the Prozac, go for exorcism.
I think he did that spelling on purpose, in order to rhyme with lesbian.
Which is how you are acting - unfulfilled lesbian on her period, with a yeast infection.
Take a long stiff drink of Everclear, unwind all of your bullish market trades, buy a truckload of silver and ammo, and develop a sense of humor.
Otherwise, i fear you will be a short jump out of a tall building statistic soon enough.
Straight out of a perverted, cocked-up psyche, nice one. Like your existence here isn't a fucking yeast infection personified...
Please realize and fulfill for yourself all the aspirations your absurd, fantastic cognition can muster.
Just STFU!
What? Is that all you have fuckwit? Huh?
Are you anally-obsessed too?
Holy fuck man are you expecting a margin call or something?
I just have nothing else to do but agitate anally-obsessed fucking douchenozzles right now, hope that's alright..?
Enough!
-IF you kids don't stop this fighting this instant I am going to turn this market crash around right now and take you all back to Gramma Yellen's to do QE and stock buybacks all day instead of re-visiting the Lows Of 2009!
Yes, because after all the sodomy insults are exhauted as a reflexive, immediate execution of last cognitive resorts, ZH commenters of this ilk are generally all out of ammo. ;)
Fuckwits, BTChez.
Well, you sure don't have any nuts after the trade hammer smashed them flat on the currency desk, so I think I am on to something................
Even your screen name is a mis-spelling of the proverbial twat..................
Try a yoghurt douche for your irritated hole, m'kay ?
Sounds like you have personal experience with yoghurt douches and irritated holes which makes perfect sense. Thanks anyway, you can have mine.
Wow, man, you got a lot of repressed anger going on there.
Got some puts wrong or sumpthin' ?
Look who's fucking talking! I've seen your posts for some time now and you're a summary emotional fucking mess.
I just have nothing better to do and am finding a lot of humor in ZH commenters' evident obsession with all things anal.
So, go self-fornicate asslips.
Here's some relevant humor:
https://www.youtube.com/watch?v=MN9Lf_X0olI
Ok, someone fess up being Doug Stanhope on Zero Hedge.
Haole = Vikings fan
I think American football is stupid but I love you Mr. Pink. Always appreciate your comments.
I think Thesbian means two or more lesbians. I think it's an insult, but could be a compliment in today's social agenda.
You suck. You know...they are really working miracles these days with anti-depressants. You should check some out. Might help.
Apparently, you're an expert on sucking?
Terminal velocity of a human body dropping from a window is about 118 mph, give or take a tidge.
Your pavement is coming up fast in 5..........4.........3..........2............1.............
Next incarnation, stay out of the markets - they have been bad news for your character development.
If you could only see what a vanilla tool you look like from my perspective.
Better an optimistic vanilla tool than a sour old used up bitter canker on the ass of life.
Get some meds, stant.
Again, look who's talking. I'm laughing my ass off at you and have no reason to be bitter other than the complete and utter lack of imagination and humor you fucking "enlightened" dimwits possess and have at your disposal.
You're in luck and there is hope however in that there is no shortage of imbeciles on here who can ensure your expertise in ass and in sodomy.
Please take advantage of this not-so-limited-time offer.
Fuckwits, BTChez
All right! That is it! I warned You!!!!
I told you kids to fucking shut up and let me drive this flaming turd over the cliff!!!
I'm on the phone with Gramma Yellen and She is intervening in the markets right now -so you can just forget about going short the phone book or watching hedgie douchebags have meltdowns on CNB-fucking-uuuullshit-C or buying silver or anything fun today!!!
Hey cum chuggler...I know your beard of sperm is irritating your acne, but try and relax.
How do you come-up with these images without having looked in the mirror at some point I have no idea...
Fuckwits, BTChez
Hesitate to ask, due to deserved invective heaved my way, but why so bitter? I'm no anal expert, but I suspect you're actually a female femanist.
I want to ask if that really works for you or, would that be patronizing?
Brings back not so fond memories of amoebic dysnenrty.
You forgot the blood in in the vomit and stool though.
I personally would give good money to stop shitting blood.
What the fuck is happening in here?!?
Go to the doctor dude! And stop eating wheat for a while. Holy shit!