Chinese Stocks Tumble As Hong Kong Officials Monitor Surge In ATM Withdrawals

Chinese stocks are down for the fifth day in a row (something that hasn't happened since May 2017) with the tech-heavy Shenzhen Composite is now  down 5% YTD and the Shanghai Composite is tumbling back towards unchanged.

The decline is happening at the same time as Bitcoin is in freefall...

And chatter about bankers using WeChat to ask for Deposits.

In other words - a liquidity crisis.

And that anxiety is only increased by the latest report from Reuters that cash withdrawals at Hong Kong ATMs have surged, prompting scrutiny from monetary authorities, the banking industry, and police amid media reports that mainland Chinese are withdrawing hundreds of thousands of dollars using up to 50 cards at a time.

China has battled to curb capital outflows for years. A move that took effect on Jan. 1 caps overseas withdrawals using domestic Chinese bank cards.

The gambling hub of Macau last year introduced facial recognition technology at ATMs to target illicit outflows from mainland China, a move that Hong Kong’s central bank told Reuters could increase cash withdrawals in the financial center.

“The HKMA is aware of media reports about people using multiple mainland cards to withdraw cash at ATMs in Hong Kong,” the central bank said in a statement, adding that it was “monitoring the situation and is in discussion with the banking industry and the police about this issue”.

A local banker said some commercial banks have stepped up monitoring of cash withdrawals.

Hong Kong police said they were working closely with the HKMA and banking industry to respond to any changes in financial crime trends.

While this is as much to do with money-laundering and capital flight, the liquidation of stocks, cryptocurrencies, and now amss ATM withdrawals suggests more is going on that the usual pre-new-year liquidity hording.

The bigger question is - when will China devalue again? it's already got the capital outflows anticipating it...

 

Comments

overbet Anonymous (not verified) Thu, 02/01/2018 - 21:18 Permalink

jackpot compatible:

 

"At present, there are scores of ATM manufacturers in China, including homegrown brands like GRG Banking, Shenzhen Yihua Computer, Eastcom, KingTeller, and Cashway, European and American brands such as NCR, Diebold, and Wincor Nixdorf, and Japanese and South Korean brands like Hitachi, OKI, and Hyosung."

https://www.prnewswire.com/news-releases/china-automatic-teller-machine…

 

"According to that source — who asked to remain anonymous because he was not authorized to speak on the record — the Secret Service has received credible information that crooks are activating so-called “cash out crews” to attack front-loading ATMs manufactured by ATM vendor Diebold Nixdorf."

 

https://krebsonsecurity.com/2018/01/first-jackpotting-attacks-hit-u-s-a…

In reply to by Anonymous (not verified)

Automatic Choke Thu, 02/01/2018 - 21:01 Permalink

are they using the same facial recognition software that the iphone has?   you know, the one that can't tell one asian from another....?    discovery of that could lead to a bunch of asians emptying out each others bank accounts......

svalleyboy Juggernaut x2 Thu, 02/01/2018 - 21:23 Permalink

Hilarious, you have just no clue. The FED and banksters have made Trump the man he is. All his real estate businesses profits are juiced by the low interest rates and easy liquidity arranged by the fed. who do you think has funded him after going bankrupt the last few times. Do you know that after his latest bankruptcy, he was brought out of it, with the licensing deal of $50M/Yr) by none other than Wilbur Ross (the head of bankruptcy at Rotschilds, NY) and Carl Icahn as the major players. These guys are the FED, why do you think the stock market is so high. Why do you think this corporate tax break was done at this time. Guys like the banksters are completely exposed to stocks and they will get the stock increase AND the dividends and the US tax payer is taking on the debt fo this. 

In reply to by Juggernaut x2

nmewn Thu, 02/01/2018 - 21:03 Permalink

"I rawnt my money! And I rawnt my money now!" - Chi-Com Rentworth 

Can capital controls be far behind?

Not trying to panic anyone...or anything ;-)

Dr. Bonzo Thu, 02/01/2018 - 21:08 Permalink

Yup. Seen it. Shit's been going on for months. I find these "reports" continuously amusing when you guys turn over a rock and make these proclamations every time. Shit has been going on for fucking months. Fatfingered blunt skull peasants with their manpurses clutching stacks of plastic cards swapping the shit out into cash. At ATMs. At teller windows. At cash exchange shops. It's fucking everywhere. On every corner. In every bank. It's a fucking infestation of mainland monkeys and their fetid desperation. SMFH.....

These fucking monkeys and their neverending despair. The idiousness of this city's government to continue to cater to these fucking medievalist hordes rather than the city's residents themselves continues to astound and infuriate.

They're attempting to cram all of China into one fucking city.... it wears thin fast. Very fast. Especially with the most abused people on planet earth. Courtesy of.... themselves.

SMFH.

Hongcha Dr. Bonzo Thu, 02/01/2018 - 23:16 Permalink

Dr. Bonzo; correct me if I am wrong but your are reporting from Hong Kong?  I haven't been since mid-2015.  Stayed at the Langham near Shanghai Street; rack rates are lower now than 2 1/2 years ago.  It was about 40 C at that time and Kowloon smelled like a very, very large and hot garbage can.  I still love it ... just fascinating watching that city roll.  Don't have to live there, though.

I think the Party will create and change its own reality, unimpeded.  These are bumps in the road.  Got WeChat?  Fucking thing is Big Brother in your pocket.  USA is India by comparison.

 

In reply to by Dr. Bonzo