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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yes, but at least you can light a fire and cook your friend
I don't have any friends. That's why I'm on Zero Hedge.
I read ZH just to catch some exchanges like this.
I'm here for the pot roast recipes.
And the free coffee.
Any good place to see the SHCOMP without the delay?
No country can survive with the Rothschilds at the helm - China is preparing for something very BIG !
At the very least a Gold and Silver backed currency maybe even physical precious metal coinage.
They declare a new gold backed Chinese currency, parade around all of the tons of gold they've been acquiring to prove it. Russia immediately recognizes it and announces its exchange rate. World watches comex collapse.
Not had so much fun since that Gimp million $ bonus was on here,where is that scumbag,come out and watch the abyss swallow all that fiat junk.
If all of this turmoil can be directly linked to the measly 0.25% fed rate increase then we have a global system not worth having at all.
Million $ bonus margin call on emergency phone 57.
Can we agree to call this one The Hindenburg Bubble?
Try a sissy for your fellatio needs. Eager, experienced, and happy to serve. No "girlfriend" can match the experience..
Kik cdroxi
Damn, is it fucking fag night on ZH tonight ??? Never seen so many posts on guys sucking other guys. WTF ?
I LOVE PUSSY ! Take that you sperm burpers.
Now, back to the prelude of "Black Monday 2016" ...
Hey, the playoffs are on. Go Pack, go.
That leaves a different breed of cat busy on the boards.
https://www.youtube.com/watch?v=yweACYEyhKg&t=56
Any shipping magnates willing to smuggle Chair Person Yellen out of the country ring emergency phone 2051 your services are needed NOW !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
i ran out of whiskly and drinking b&b but this does NOT look bullish
Curious that individual Chinese choose to buy (very expensive!) US dollars...when there are many other safer currencies ON SALE.
Or gold...
After spiking $3 in tonight's action, gold is currently down $1.80 ... hang on CIGAs !
Seems to me that my collection of Fishing reels and guns is really going to worth something....
Dont forget the hooks and ammo.
This all leads to helicopter money. In the mean time, carnage.
Chopper dollars from the sky.
A thousand silver dollars high.
PM's in the AM
A silver lining nigh.
You only have to look at the massive GOLD thefts by the Zionist/US to realise GOLD will play a leading role in the new de-Rothschilds global economy - Essentially China have to crash their own economy to destroy the Western Banking System before they can move FORWARD - It's either that or WAR - China has no desire for WAR !
4 Bold Jack Os ... Fuck, I fold.
If China moves to gold coins I'll never say another bad word about the little buggers.
And just how exactly are you going to get your hands on any of them if they do?
I'll trade a pork sandwich.
You only have to look at the massive GOLD thefts by the Zionist/US to realise GOLD will play a leading role in the new de-Rothschilds global economy - Essentially China have to crash their own economy to destroy the Western Banking System before they can move FORWARD - It's either that or WAR - China has no desire for WAR !
You only have to look at the massive GOLD thefts by the Zionist/US to realise GOLD will play a leading role in the new de-Rothschilds global economy - Essentially China have to crash their own economy to destroy the Western Banking System before they can move FORWARD - It's either that or WAR - China has no desire for WAR !
You only have to look at the massive GOLD thefts by the Zionist/US to realise GOLD will play a leading role in the new de-Rothschilds global economy - Essentially China have to crash their own economy to destroy the Western Banking System before they can move FORWARD - It's either that or WAR - China has no desire for WAR !
We heard you the first time Jack.
Sorry - Don't know what happened - tried to delete them but that failed as well
Are you quoting Hillary?
As soon as you get an upvote or downvote you are not able to edit your post(s).
I think so. I edit all the time because I can never manage to see a typo or misspelling until I post and it seems you have to get to it pretty quick and you can only remove so much. Once I double posted a link and then removed it and it will block people from voting on it. Which may actually be used as a tactic if you want to prevent people from downvoting a post that you know will piss people off. Or at least that's what I thought, but it doesn't work because they will follow you and downvote your next post. (=
My experience is a double post happens if you accidentally hit the right mouse button while posting.
i don't undersatbd can you repeat it again
I'm posting these from a beach on the the East Coast of Australia - I'm the only one here apart from the dog ,although I think i just spotted a US military aircraft in the sky ! I supoose it's the same everywhere ?
Sounds like a nice spot to kick back and watch the "fireworks" today and into your evening there in Australia. Lucky you to have the dog for company,
Sad part is my dog is better company than 75% of the people I come across ....
Time to upgrade your 386 processor.
Jack be drinking, and Jack be quick..
I am Jack's complete lack of surprise.
Never forget the law of opposites: "Gold is a barborous relic". Stack away Merrill.
haole (ahole?),
you are really messed up
ya have a future in a psyche ward or prison unless you get your act together
just sayin,
r
What other kind of panic is there? Yep it's all in their heads.
I have to laugh when ever I read the words "Fundamentals", it's so "20th Century".
On the other hand, "Psychological" is definitely the new fundamentals now, along with "Pathological", when it comes to how the markets work.
Fundamentals panic is scheduled for next week.