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China to explode/implode....

REO 54

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#81
Twelve dead in fresh violence in China's Xinjiang province: Xinhua


(Reuters) - Chinese police shot dead six people during a "terrorist" attack in the restive western region of Xinjiang and six more died when explosives they were carrying detonated, the official Xinhua news agency said.

Police came under attack on Friday by a group throwing explosive devices in Xinhe county, Xinhua said, citing local authorities, the latest violence to jolt the region with a large Muslim population.

"During the process of tackling a terrorist case in Xinhe county on January 24, they were attacked by thugs who were throwing explosive devices," Xinhua said. Five suspects were captured and one policeman was slightly injured.

Xinjiang has been the theatre of numerous incidents of unrest in recent years, which the government often blames on the separatist East Turkestan Islamic Movement, though experts and rights groups cast doubt on its existence as a cohesive group.

At least 91 people, including several policemen, have been killed in violence in Xinjiang since last April, according to state media reports.

Many rights groups say China has overplayed the threat posed by activists from the large Uighur minority, Moslems who speak a Turkic language, to justify tough controls in energy-rich Xinjiang. The region lies on the borders of ex-Soviet Central Asia, India and Pakistan.

Eleven people believed to be members of a militant group of ethnic Uighurs were killed in Kyrgyzstan after illegally crossing into the former Soviet republic from China, Kyrgyz border guards said on Friday.

(Reporting by Beijing Newsroom; Editing by Ron Popeski)

http://www.reuters.com/article/2014/01/25/us-china-xinjiang-idUSBREA0O08X20140125
 

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#82
China's loan sharks circle in murky shadow bank waters


An employee carries bundles of 100 yuan Chinese bank notes to store after counting at a bank in Taiyuan, Shanxi province July 4, 2013.
CREDIT: REUTERS/JON WOO
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(Reuters) - China's crackdown on risky lending has driven borrowers into an even darker place in their search for capital - underground banking.

The domain of loan sharks, underground lending is the least regulated area of China's shadow banking, or non-banking, sector and for some it is seen as the biggest risk to China's financial stability.

It connects China's army of wealthy savers with mostly small borrowers unable to access normal lending and who can end up paying exorbitant annual interest rates of 100 percent or more.

At 8 percent of China's $9.4 trillion economy, according to IMF estimates, it is a surprisingly large niche.

As China intensifies its efforts to discipline risky lenders and calm exuberant credit growth, financial stress is building in the country and underground debt is becoming one of the biggest banking risks.

Analysts say the underground market is most vulnerable to worrying spikes in unpaid loans, especially since its borrowers are often small-time exporters hardest hit when the economy stutters.

"You may see a high frequency of defaults," said Qiang Liao, an analyst at Standard & Poor's in Beijing. "The borrowers are more vulnerable to an adverse economic environment."

The risk is that a major default of an underground loan could trigger a domino effect threatening the wider financial system.

Such dangers were highlighted this month when an investment trust teetered on the verge of a default after raising funds to make a loan to a struggling coal company, which had also borrowed from loan sharks. The coal company has collapsed amid falling coal prices, with the high rates on its underground loans contributing to its downfall.

Among anecdotal evidence of the growth in loan sharking, media reports said Inner Mongolia saw an "explosion" in the number of court disputes over underground loans last year at over 43,000.

In Jiangsu in south China, businesswoman Gu Chunfang was sentenced in October to effective life in prison for illegally amassing 1.8 billion yuan with promises of annual returns of 40 percent. Some of the money was invested in coal mines.

"When I look at the figures for the money I've borrowed, I feel uncomfortable and pressured, so I rather not look," Gu was quoted by the International Finance News as saying, when she explained why she had stopped keeping accounts.

Gu was undergoing plastic surgery on her face to alter her looks and evade the police when she was arrested, the paper said.

FAST LIFE AND FAST CARS

Analysts believe the underground market, which most estimate is worth around 3 trillion yuan to 4 trillion yuan, is one of the major sources of funding for shadow banks.

But any assessment of what underground lenders get up to are intelligent guesses at best. Information is hard to come by and how much money is involved is not really known. Likewise, where the cash goes after it is raised is also not clear.

When China tightened credit controls in 2011, the sector was thrust under the spotlight after dozens of company bosses from Wenzhou city, known for its private enterprise, fled town to avoid repaying their underground loans.

Wu Ying, probably China's best known underground lender who was jailed for life in 2012 for cheating investors of 380 million yuan by offering returns as high as 180 percent, was said to have invested in over 700 shops and 20 cars, including four BMWs and a Ferrari.

"Informal lenders are the least transparent of the actors in China's shadow banking system," the IMF said in a report in October 2012, adding that they challenge financial stability.

The spotlight has been on loan sharks previously. More than 10,000 people reportedly blocked a train station in central Hunan province in 2008 after a local loan shark scheme lost some 620 million yuan of their cash.

DEADLY RATES

China's overall debt has ballooned in recent years. The ratio of total debt-to-GDP, including government, corporate and household debt, was set to reach 218 percent of GDP by the end of 2013, up 87 percentage points since 2008, rating agency Fitch estimated last year.

China's efforts to bring the growth under greater control ironically quickened the rise of shadow banks, which thrive on the thirst for cash and a desire among savers for sterling returns.

With China's one-year deposit rates at 3 percent and scarcely above annual inflation, many savers succumb to the promise of fat investment returns.

Estimated by Standard & Poor's to account for $3.7 trillion of lending, or a third of all bank loans, the growing might of shadow banks has raised fears that they might imperil China's financial stability with their looser lending standards, especially at a time when years of breakneck economic growth is coming to an end.

"They help people to increase their leverage to unsustainable levels at a time when their businesses are going down," said Christine Kuo, a senior credit officer at Moody's.

Qinghai Sunshiny Mining Co Ltd knows how fatal steep rates can be. It turned to loan sharks after it was blacklisted by banks in 2005 and owed 119 creditors 13.2 billion yuan as of September, local media said.

Rates on some of the loans were 120 percent, or 314 percent if interest was compounded, and Qinghai Sunshiny has since gone bust.

(Reporting by Koh Gui Qing; Additional reporting by Shao Xiaoyi in BEIJING and Shanghai Newsroom)

http://www.reuters.com/article/2014/01/30/us-china-loans-underground-idUSBREA0T1U020140130
 

REO 54

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#83
"Off The Charts" How China Fooled The World


Submitted by Tyler Durden on 02/16/2014 19:46 -0500

China George Soros Jim Chanos Michael Pettis Monetary Policy Shadow Banking



China is now the second largest economy in the world and for the last 30 years China's economy has been growing at an astonishing rate, wowing the world, as spending and investment has been undertaken on a scale never seen before in human history - 30 new airports, 26,000 miles of motorways and a new skyscraper every five days have been built in China in the last five years. But as we (and Michael Pettis, George Soros, and Jim Chanos - among many others) have warned, it is all eerily reminiscent of what happened in the West... the vast majority of it has been built on credit. This has now left the Chinese economy with huge debts and questions over whether much of the money can ever be paid back (spoiler alert: it can't and it won't).

The BBC's Robert Peston travels to China to investigate how this mighty economic giant could actually be in serious trouble.

As Michael Pettis, Jim Chanos, Zero Hedge (numerous times), and now George Soros have explained. Simply put -

"There is an unresolved self-contradiction in China’s current policies: restarting the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years."
The "eerie resemblances" - as Soros previously noted - to the US in 2008 have profound consequences for China and the world - nowhere is that more dangerously exposed (just as in the US) than in the Chinese shadow banking sector as explained above.



Tired of reading about it? Then spend 2 minutes of your life with the following uncomfortable truth clips...

The past 5 years in China...





And here is Fitch's Charlene Chu (in a little over 60 seconds) laying out the ugly facts that are China's credit bubble...





Of course, the situation has become critical now as reform-imposed credit-crunch is rapidly spreading up the food chain proving that China has no painless way out and can only stoke the fire more in their already-burning house - as we noted here...



January's data was simply the final exclamation mark in a decade-long series in which China's prosperity has been simply the result of an exponentially increasing amount of loan and liquidity creation by the Chinese semi-national and government backstopped financial system.

...

Here's the problem: one can't put the January lending surge aside, as it came at a time when for the second time in six months the PBOC tried to taper, only to be forced to not only bail out its money markets, but is on the verge of a bankruptcy tsunami involving its shadow banking products, the first of which it also bailed out despite repeated warnings this time it means business and would let it die.

In this context, the January number is precisely what it appears: the bank's logical response to a liquidity crunch as the Chinese regime finds itself in the same spot that the Fed has been in for the past 5 years - it must keep the monetary spice flowing, or else the party is over. And just like the Fed, and now the BOJ, so too does China not want to deal with the fall out if all it takes to created yet another quarter of increasingly subpar economic growth is another record of funny money conceived out of thin air.

The only problem is that it is becoming increasingly difficult to hide all the pieces of funny money, most of which result in bad and otherwise impaired loans, under the rug. And just to show the problem in its context, here is how China's banks created some 50% more in bank loans in January than the QE credit money created by both the Fed and the BOJ combined.





And finally, here is China's nearly half a trillion in total liquidity added to the system in just one month (some deleveraging, right?) looks compared to the Fed and the BOJ's much maligned and unprecedented unconventional monetary policy.

More at link :http://www.zerohedge.com/news/2014-02-16/charts-how-china-fooled-world
 

REO 54

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#84
Mining shares post biggest drop for six months on China worries:

(Reuters) - Mining shares extended losses to post their biggest one-day slide in six months on Tuesday as concern persisted that slower economic growth in China and lending curbs on the property sector there would hurt demand for industrial metals.

The UK mining index fell 2.4 percent, the biggest sectoral decliner, dragged down by major mining companies such as Rio Tinto, BHP Billiton and Anglo American, which fell 2-3.2 percent.

The index lost one percent on Monday and 4.6 percent in less than a week on concern over banks in China, the world's top metals consumer, tightening loans to property developers and other sectors such as steel, cement and construction.

"China is absolutely crucial to marginal demand for industrial metals and there is no doubt that recent macro-economic concerns in China are playing a role in the sector's underperformance," Macquarie strategist Daniel McCormack said.

"But I would probably use the recent pullback as an opportunity to accumulate mining stocks. The earnings momentum has turned, the sector is cheap and is pricing in a weakness in commodity prices. It's a sector that investors have been away from, but are increasingly looking at it now. So it could benefit from fund flows also," he said.

Weaker miners put pressure on the blue-chip FTSE 100 index, which snapped a seven-session winning run and slipped from a one-month high. The benchmark index, which climbed 0.4 percent on Monday, was down 0.9 percent at 6,806.14 points by 1144 GMT. The UK banking index fell 1.4 percent.

Traders said the FTSE 100, which came within striking distance of its record high scaled 14 years ago this week, also witnessed a technical sell-off.

"Many stocks have become overbought and it's not hard to argue that now is a good time to take some profit. These major resistance areas are rarely overcome at the first attempt and some consolidation would not be a bad thing in the short term," Bill McNamara, technical analyst at Charles Stanley, said.

The FTSE 100 has a relative strength indicator (RSI) reading on a nine-day basis of about 70. If a market has an RSI above 70, it indicates it is technically "overbought" and often results in a pullback.

"There are a few exhaustion signals going on, and the RSI looks overbought. It doesn't mean we won't get to that all-time high, but we might just need a bit of consolidation first," Hantec Markets analyst Richard Perry said.

Among sharp movers, GKN fell 2.7 percent, with trading volume at more than double its average 90-day volume - above those for the FTSE where volume only stood at 33 percent.

Although GKN posted a rise in annual profits and forecast continued growth this year, it unnerved some investors by warning on the possible effects of adverse currency movements.

http://uk.reuters.com/article/2014/02/25/uk-markets-britain-stocks-idUKBRE8710BE20140225
 

REO 54

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#85
Chinese Credit Concerns Clobber Copper; Collapse Continues To Lowest Since July 2010:




Copper futures prices are plunging once again, back under $3.00 back at the lowest levels since July 2010. The last 3 days have seen prices drop over 7.5% as China credit contagion concerns surge and letters-of-credit from last summer's cash-for-copper financing deals roll-off and businesses need the cash. The vicious circle of tumbling collateral values (copper and Iron ore) is exacerbating the tightening financial conditions in China as banks hoard liquidity, unwilling to lend to the over-capacity industries that the government has deemed unworthy. Rumors today of further defaults triggered this latest drop, and as we noted previously, there are a lot more to come.

Charts and more at link :

http://www.zerohedge.com/news/2014-...er-copper-collapse-continues-lowest-july-2010
 

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#86
China's "Minsky Moment" Is Here, Morgan Stanley Finds:

From Morgan Stanley's Cyril Moulle-Berteaux and Sergei Parmenov, who pick up where our simple chart showing China's "debt nightmare" left off.

We have described in detail over the past two years how we believe China’s twin excesses (excessive investment funded by excessive debt) will inevitably unwind, causing a substantial slowdown in China’s economy, significantly below market expectations. In recent weeks, a trip to the region and further research into China’s shadow banking system have convinced us that China is approaching its “Minsky Moment,” (Display 1) which increases the chances of a disorderly unwind of China’s excesses. The efficiency with which credit generates economic activity is already deteriorating, as more investments are made in non-productive projects and more debt is being used to repay old debts.

Based on our analysis, our baseline case is that China may slow from the current level of 7.7% Gross Domestic Product (GDP) growth to 5.0% over the next two years. A disorderly unwind could take Chinese growth down to 4% in a shorter time frame with potentially disastrous consequences for levered Chinese assets (banks, property) and the entire commodity supply chain (commodity stocks, equipment stocks, commodity-sensitive countries and their currencies).

The consensus is more optimistic and expects China’s economy to grow by 7.4% in 2014 and 7.2% in 2015. Most market participants have concluded that the Chinese economy, despite its excesses, will slow only moderately as the government successfully manages to “soft-land” the credit and investment boom and that, as a result, the impact on global GDP growth could be moderate and is not likely to derail the global developed-market-led expansion. However, one of the more controversial conclusions of our analysis is that global economic growth could be impacted severely enough to cause a global earnings recession.

http://www.zerohedge.com/news/2014-03-19/chinas-minsky-moment-here-morgan-stanley-finds
 

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#87
Article:

(Reuters) - Hong Kong police used pepper spray to disperse pro-democracy activists on Monday as the Asian financial center braces for a wave of disruptive protests against China's decision to rule out full democracy.

China's National People's Congress (NPC) Standing Committee set the stage for a political showdown on Sunday when it rejected democrats' demands for the right to freely choose Hong Kong's next leader in 2017, leading scores of protesters to take to the streets.

Scuffles broke out on Monday during a tense stand-off at the entrance to a center where a senior Chinese official was explaining Beijing's decision, prompting police to use pepper spray amid chaotic scenes inside and outside the venue.

Activists from a movement called Occupy Central have threatened to lock down Hong Kong's financial district on an unspecified date unless Beijing grants full democracy.

"Occupy Central is an illegal activity. If we give in, it will trigger more illegal activities," said Li Fei, deputy secretary general of the NPC Standing Committee, who flew to Hong Kong to explain Beijing's decision.

Pro-democracy activists inside the building heckled Li, shouting slogans and interrupting his speech.

Hong Kong returned to Chinese rule in 1997 with wide-ranging autonomy and freedoms not enjoyed on the mainland under a policy of "one country, two systems".

The activists want universal suffrage, but Communist Party rulers in Beijing say any candidate for the territory's chief executive has to be first approved by a nominating panel - likely to be stacked with pro-Beijing loyalists and making it almost impossible for an opposition democrat to get on the ballot.

"ROOM FOR DISCUSSION"

If Hong Kong lawmakers voted down the package, governing Hong Kong would become much more difficult, Li said. The next leader would again be chosen by a small committee without any form of popular vote.

But Hong Kong leader Leung Chun-ying tried to cast the NPC decision in a good light.

"There is still room for discussion in regards to the issue in Hong Kong legislation," he said.

Dressed in black and wearing yellow ribbons, members of the democratic camp were escorted out of the auditorium after they shouted and held up signs reading "shameful" and saying Beijing had lost credibility. Pro-establishment people in the crowd clapped as the democrats were led out.

Alex Chow, head of the Hong Kong Federation of Students, was also removed as he criticized the NPC's Li.

"Hong Kong is our turf," Chow shouted. "The NPC doesn't represent us. Stop insulting us. Hong Kong people won't be insulted by you again."

Student activists said they would begin boycotting classes in mid-September.

Prominent pro-establishment figure and former Hong Kong security chief Regina Ip said she expected six months of unrest in the lead-up to Hong Kong lawmakers' vote on the NPC proposal, media reported.

About 100 activists had gathered for Li's speech, some waving British colonial flags and banners with an "X" over the Chinese characters for "communism" amid a heavy police presence.

A group of Beijing loyalists stood nearby waving China's flag.

The NPC Standing Committee endorsed a framework to let only two or three candidates run in Hong Kong's 2017 leadership vote. All candidates must first obtain majority backing from the nominating committee.

TAIWAN EXPRESSES REGRET

Political reform has been a major source of tension in Hong Kong, with China party leaders fearful of calls for democracy spreading to other cities.

The Mainland Affairs Council in self-ruled Taiwan, which China regards as a breakaway province, expressed "regret" at the NPC's decision while activist groups posted messages of support for the democracy movement online. China has held out the "one country, two systems" formula as a solution for Taiwan, an idea ridiculed by Taipei.

Following the publication by Beijing of a white paper outlining China's authority over Hong Kong in June, democracy activists held an unofficial referendum on voting in the "special administrative region", and hundreds of thousands marched to the city's business district and staged a sit-in.

Charles Rivkin, U.S. Assistant Secretary of State for Economic and Business Affairs, said in Singapore the United States backed "free and fair elections and transparency".

"We believe, in the case of Hong Kong, in one country and two systems," he said.

British Deputy Prime Minister Nick Clegg said in July that Britain "would not shy away from defending" one country, two systems.

Britain made no mention of democracy for Hong Kong until the dying days of about 150 years of colonial rule.

http://www.reuters.com/article/2014/09/01/us-china-hongkong-idUSKBN0GU04M20140901
 

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#88
Asia on edge, braces for China growth data:

(Reuters) - Asian markets were on edge on Tuesday ahead of data expected to show China's economy grew at the slowest pace in 24 years last quarter, adding to the case for more stimulus measures both at home and abroad.

A soft result would only magnify concerns about global demand and put further pressure on commodity prices, with oil slipping again on Monday.

Investors are already in a skittish mood after the major Chinese indices suffered their biggest one-day drop since the global financial crisis after regulators cracked down on speculative lending.

Both the Shanghai Composite Index .SSEC and the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen ended Monday with losses of more than 7 percent.

Expectations are that the world's second-largest economy grew 7.2 percent last quarter, the slowest pace since the first quarter of 2009 and short of Beijing's target of 7.5 percent.

Also due are Chinese retail sales, industrial output and urban investment for December.

Early action was muted after a holiday in U.S. markets and Australia's main share index .AXJO inched into the red. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 0.1 percent.

http://www.reuters.com/article/2015/01/19/us-markets-global-idUSKBN0KR10W20150119
 

REO 54

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#89
China Adds Stimulus With Third Interest-Rate Cut in Six Months:

China’s central bank cut interest rates for the third time in six months as it ratchets up support for an economy grappling with a debt overhang and property slump.
The People’s Bank of China will reduce the one-year lending rate 0.25 percentage point to 5.1 percent, and cut the one-year deposit rate by the same amount to 2.25 percent, effective Monday, the central bank said on its website Sunday. In another step to free up interest rates, the central bank will also raise the limit on what banks can pay savers.
Inflation remained subdued and exports and imports both slid in April -- underscoring the economy’s struggle to match Premier Li Keqiang’s 2015 growth target of about 7 percent. With capital flowing abroad and local governments embroiled in a complex debt cleanup, economists anticipate further easing.
“The economy requires substantial stimulus to get back on its feet,” said Frederic Neumann, co-head of Asian economics research in Hong Kong at HSBC Holdings Plc. “But monetary easing on its own may not do the trick: China also requires a fiscal kick to steady demand.”
The latest interest-rate reduction adds to China’s own steps and that of at least 30 countries that have loosened monetary policy this year as lower commodity prices give room to stimulate. It also illustrates a divergence of policy direction between the world’s two biggest economies, with analysts forecasting the U.S. Federal Reserve will lift borrowing costs later this year for the first time since 2006.
Rates Firepower
“The People’s Bank has the luxury of having plenty of room to maneuver and is willing to use it,” said Mark Williams, Chief Asia Economist at Capital Economics Ltd.
China is accelerating reforms and seeing volatile external demand, the PBOC said in a statement accompanying the decision.
The “economy faces relatively large downward pressure,” the PBOC said. “The overall inflation level is low, the real interest-rate level is above the historical average, for which there was room to use the interest-rate tool.”
Ma Jun, chief economist with the research bureau of the PBOC, said the central bank has room to use other tools such as required deposit reserve ratio and other conventional policies.
Authorities have pursued a multi-pronged easing approach this year, combining benchmark interest rate cuts with lower bank reserve ratios, liquidity injections to banks and efforts to bring down money-market rates. One area that has benefited is China’s stock market, with the Shanghai Composite Index soaring since early March, before a retreat last week.
“The PBOC wants to avoid exponential share price gains but wants to support growth, so easing after pull backs in the share market makes sense,” said Shane Oliver chief economist at AMP Capital Investors in Sydney. “It confirms that bad news on the economy will be good news for shares via monetary easing.”

More at link:

http://www.bloomberg.com/news/artic...t-rates-in-stepped-up-effort-to-stem-slowdown
 

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#90
Canada: China’s «Trojan horse»
by Ariel Noyola Rodríguez

"According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Canadian corporations increased their Yuan-denominated operations by 213% in comparison to 2013 in March 2015 [5].

The enthusiasm that the Chinese currency has stirred up in Canada is so big that there will be held a financial summit about Pacific Asia in the Vancouver convention centre on 16 June. The summit is sponsored by City AgeMedia, AdvantageBC and the province of British Columbia [6]."

http://www.voltairenet.org/article187607.html
 

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#91
World | Tue May 26, 2015 7:31am EDT Related: WORLD, CHINA
China to extend military reach, build lighthouses in disputed waters
BEIJING | BY MEGHA RAJAGOPALAN :

China outlined a strategy to boost its naval reach on Tuesday and held a groundbreaking ceremony for two lighthouses in disputed waters, developments likely to escalate tensions in a region already jittery about Beijing's maritime ambitions.

In a policy document issued by the State Council, the Communist-ruled country's cabinet, China vowed to increase its "open seas protection", switching from air defense to both offense and defense, and criticized neighbors who take "provocative actions" on its reefs and islands.

China has been taking an increasingly assertive posture over recent years in the disputed waters of the South China Sea, where Beijing has engaged in land reclamation in the Spratly archipelago.

China, which claims most of the South China Sea, criticized Washington after a U.S. spy plane flew over areas near the reefs last week, with both sides accusing each other of stoking instability.

It has overlapping claims with the Philippines, Vietnam, Malaysia, Taiwan and Brunei in the South China Sea, through which $5 trillion in ship-borne trade passes every year.

Defence Ministry spokesman Yang Yujun said China's reclamation in the Spratlys was comparable with construction of homes and roads on the mainland.

"From the perspective of sovereignty, there is absolutely no difference," he told reporters.

Some countries with "ulterior motives" had unfairly characterized China's military presence and sensationalized the issue, he said. Surveillance in the region was increasingly common and China would continue to take "necessary measures" to respond.

"Some external countries are also busy meddling in South China Sea affairs. A tiny few maintain constant close-in air and sea surveillance and reconnaissance against China," the strategy paper said in a thinly veiled reference to the United States.

http://www.reuters.com/article/2015/05/26/us-china-defence-idUSKBN0OB0CA20150526
 

REO 54

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#92
Well if the good ole' USA ain't buying China crap,apparently Latin America will ......

China, Chile aim to double bilateral trade by 2015:

Top metals consumer China and world no. 1 copper producer Chile plan to double their bilateral trade to $60-billion by 2015, Chinese Premier Wen Jiabao said on Tuesday during an official visit to Chile.

China has made relatively few major investments in the Andean country, despite being its main trade partner and sharing a free trade agreement.


FORECAST
Video: Global manufacturing outlook

MARKETS
Video: Asian stocks fall on Fed disappointment, weak China PMI

FINANCE
Video: More Hong Kong bankers out of work
“The president and I have agreed to double bilateral trade by 2015, to reach $60 billion in volume,” Mr. Wen said during a joint press conference with Chilean president Sebastian Pinera.

Mr. Wen, on the last leg of an official visit to Latin America, signed a series of accords with Chile.

The two leaders signed an agreement to give investors security for their investments in either of the two countries, Chile’s foreign minister Alfredo Moreno told Reuters. Further details of the agreement were not immediately available.

Trade between the two Pacific rim countries is currently around $30-billion. The Asian giant’s avid demand for commodities has boosted the economies of many export-dependent Latin American countries.

Chinese renewable energy company Sky Solar, state-backed China Development Bank and Chilean industrial group Sigdo Koppers plan to make a Chinese firm’s biggest investment in the Andean country: a $900-million solar energy park, export promotion agency ProChile said earlier on Tuesday.

http://www.theglobeandmail.com/repo...ouble-bilateral-trade-by-2015/article4371146/
 

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#93
China Is Turmoiling
http://www.zerohedge.com/news/2015-06-18/china-turmoiling

As US Soars, Chinese Stocks Crash 13% - Worst Week Since Lehman
http://www.zerohedge.com/news/2015-06-19/us-soars-chinese-stocks-crash-13-worst-week-lehman

Shanghai Composite down a stunning 13.3% on the week - the most since Lehman in 2008 (with Shenzhen slightly better at down 12.8% and CHINEXT down a record-breaking 14.99%).

Over 1000 Chinese Stocks were limit-down last night!
To put this in context, Chinese stocks lost almost $1 trillion in market cap last week - 10% of its GDP!

China stocks plunge as bubble fears grow
http://money.cnn.com/2015/06/19/investing/china-stocks-shanghai-correction/


China Shares Suffer Worst Week Since 2008
http://www.wsj.com/articles/chinas-...ex-falls-into-correction-territory-1434682051
 

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#94
This seems to be a game of Jumping from Fox Hole to Fox Hole depending on the winds of world economics.
 

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REO 54

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#97
Sheesh, is 2T a lot $ in China?

Cartoon world......

Thanks for the post Ahillock.
 

Ahillock

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Looks like the Chinese plunge protection team/PBOC has entered the market. Big reversal.
 

REO 54

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Panic: China Central Bank Steps In To Bailout Stocks As Underwater Traders Pray For A Rebound:

China’s equity miracle — the one bright spot that has so far served to distract the masses from rapidly decelerating economic growth and a bursting real estate bubble — is in deep trouble.

A dramatic unwind in unofficial margin lending channels such as umbrella trusts and structured funds which have together served to pump some CNY1 trillion into a market that was already red-hot, sparked and perpetuated a 30% decline in the space of just three weeks, pushing Beijing into panic mode and prompting simultaneous policy rate cuts along with a variety of other measures designed to stop the bleeding.


More at link:

http://www.zerohedge.com/news/2015-07-05/panic-china-central-bank-steps-bailout-stocks
 

nickndfl

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China will need to have a bank holiday and cancel all shorts for the market to turn. It was all blown up with government endorsed speculation built on thin air. They were trying to artificially create wealth in an uncontrolled manner and now it's biting them in the ass. The intentions were good, but execution was flawed. I bet there some short groups in Hong Kong just waiting for the moment to ride the collapse down. Right now they have control of the market.
 

REO 54

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Ensoniq

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Well they just nationalized 6 trillion and starting arresting short sellers

Therefore pop the corks, there is more champagne left to enjoy
 

REO 54

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Well they just nationalized 6 trillion and starting arresting short sellers

Therefore pop the corks, there is more champagne left to enjoy
Does this mean they too monetized their debt?
 

Ensoniq

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Does this mean they too monetized their debt?
Yes, 6T of it is what I read as part of the Friday news dump. I'll try to find a link
 

the_shootist

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OK, I confess....I don't understand what this means to the overall picture. Help is needed :)
 

Ensoniq

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OK, I confess....I don't understand what this means to the overall picture. Help is needed :)
It's means hyperinflation.

They are buying their own debt

Google Weimar Republic for the most famous example of how this can spiral out of control
 

Scorpio

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they have announced that they are trying to build a world class stock market system,

and if all the minion get scared away by volatility, that is not good either,
it then makes sense to outlaw shorts for a spell or for certain persons, and to try to prop it up with injections,

they are playing a very dangerous game, but at least china has the export economy to try to do so

the reality is, here in the us, it is well known about the machinations of the ptb, yet I can surmise that all of us would be very surprised at the level to which they are involved
 

Ensoniq

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I believe short selling maximizes the information for investors in a stock. It's good to know some people think a stock price will drop.

That said there are a bunch of ways to game the market that are easy to fix, but aren't in place or enforced

1) you used to only be able to short a stock on an uptick, this minimizes the ability of high speed traders and momentum day traders to manipulate a stock's price.

2) the 3-day to close rule isn't enforced and many of the big firms like Goldman are routinely accused of Naked Shorting or shorting a stock they don't own or even bother to borrow, or worse, in quantities that aren't even available to borrow. There are quite a few sites tracking "failure to deliver" rates and it's pretty sickening. This is a bullet proof way of holding a stock price down for an extended period of time.

So If China needs to have basic market rules to keep the playing field level that seems reasonable to me. What I'm seeing though is that they are acting more like the house at the local Indian Casino.
 

REO 54

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China's Record Dumping Of US Treasuries Leaves Goldman Speechless:

On Friday, alongside China's announcement that it had bought over 600 tons of gold in "one month", the PBOC released another very important data point: its total foreign exchange reserves, which declined by $17.3 billion to $3,694 billion.

Lots more at link:

http://www.zerohedge.com/news/2015-...mping-us-treasuries-leaves-goldman-speechless
 

REO 54

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Bridgewater's Ray Dalio Loses His Cool On China: "There Are No Safe Places Left To Invest":

China matters after all. As recently as three weeks ago, Bridgewater - the world's largest hedge fund - was among the most effusively bullish on China deflecting fears of the stock market drop on the basis that its "movements are not significant reflective of, or influential on, the Chinese economy." However, that meme that has been spewed by endless talking heads protecting their assets under management, has evolved. In his latest letter to investors, Ray Dalio warns, "our views on China have changed... there are no safe places to invest." As WSJ reports, the move adds to a growing chorus of high-profile investors who are challenging the long-held view that China’s rise will provide a ballast to a whole host of investments, from commodities to bonds to shares in multinational firms, as they realize, "it appears that the repercussions of the stock market’s declines will probably be greater."

More at link...

http://www.zerohedge.com/news/2015-...ol-china-there-are-no-safe-places-left-invest
 

REO 54

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Negative growth likely for 2015:


Negative growth likely for 2015
by Wayne Xing 2015-07-17
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China’s GDP in the 2nd quarter was up 7 percent year-on-year, according to the National Statistics Bureau. The growth rate was exactly the same as in the 1st quarter.

But the country’s declining automobile sales in June as well as in the first half of the year can hardly support the 7 percent GDP growth number in the first half of 2015.

Sales of automobiles in June continued the sliding trend in May, down 5.3 percent from May and 2.3 percent from the same month of last year, to 1.8 million units.


Total automobile sales in the first half of 2015 were up only 1.4 percent to 11.85 million units.

For the first time since December 2008, sales of passenger vehicles (car, MPV and SUV) in June were down 6.1 and 3.4 percent respectively from that in May and year-on-year. What is worse, sales of cars in June were down drastically by 11.6 and 15 percent respectively from last May and the same month in 2014.

Total passenger vehicle sales in the first six months of the year were up only 4.8 percent thanks to the continued high demand for SUVs. But the growth rate was down by 6.4 percentage points compared to the same period in 2014.

China’s commercial vehicle sector has experienced the worse decline since 2008, with sales in the first six months down by 14.4 percent. Sales of trucks were down 16.8 percent year-on-year. The heavy-duty segment has been the hardest hit so far this year. Sales of heavy-duty trucks were only 295,500 units, down 31 percent year-on-year compared to the 6.5 percent growth in the first half of 2014. The performance of the heavy-duty truck market is “chilly to the bones,” quipped one auto analyst.

China’s Passenger Vehicle Inventory Index in June was up by 7.3 percent from May, to 64.6 percent, according to the China Automobile Dealers Association (CADA), where 50 percent would be normal.

Given the declining market demand, the China Association of Automobile Manufacturers (CAAM) has downgraded its prediction of China’s auto market from the 7 percent growth in 2015 made at the beginning of the year to 3 percent.

CBU believes that CAAM’s adjusted prediction is still overly optimistic. Market demand in the summer months of July and August will continue to slide due to the seasonal factor. The country’s industrial manufacturing will be affected by a slowed housing market, declining export and a volatile stock market. Total automobile sales in 2015 at best would reach last year’s level of 23.5 million. It is not surprising if we see a negative growth of the market by the end of the year.

http://www.chinaautoreview.com/pub/CARArticle.aspx?ID=12406
 

REO 54

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I didn't even know China made cars. Are they the wind up kind?
I believe they are a bit more sophisticated than your comment. They may not a BMW as such, but they do meet a price point in BRIC countries and such.

They also make electric buses. Didn't see any wind up......

BYD electric double decker to hit London market in October
by Jennifer Chen 2015-07-20
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LONDON – The world’s first pure electric zero emission double decker, which was designed and manufactured by BYD Auto Co., Ltd, will hit the London market in October, said London mayor Boris Johnson at the 1st Clean Bus Summit held in London on June 30, reported just-auto.com.

Representatives from major cities worldwide and bus manufacturers attended this event.

“Many believed that a pure electric double decker would not be possible due to the size of the battery packs required to power it,” said the mayor.


“However by working with BYD and utilizing the latest cutting edge technology, London has been able to secure another world first. The new electric double decker will enter service on Route 16 in October.”

BYD Europe said it agreed at the summit to the objectives of the Clean Bus Declaration which includes a commitment to encourage the widespread use of ultra-low and zero emission buses by global cities.

The bus maker said both the declaration and summit are initiatives of The C40 Cities Climate Leadership Group, now in its 10th year, which connects 75 of the “world’s greatest cities,” representing more than 550 million people and one quarter of the global economy. “C40 is focused on tackling climate change and driving urban action that reduces greenhouse gas emissions and climate risks while increasing the health, wellbeing and economic opportunities of urban citizens.”

Isbrand He, president of BYD Europe, told the summit: “We are delighted to be chosen by London as its partner for the world debut of our new pure electric double decker. As the mayor has said, this is genuinely world-beating new technology.”

BYD has already supplied 3,500 of its ebus models and has orders for a further 4,000. The buses in service have covered millions of kilometers of real world passenger carrying service. BYD said its advanced battery technology “is fully proven and reliable and delivers exceptional range – most bus routes can be serviced for a full day on a single charge. Operating cost is significantly lower when compared to equivalent diesel vehicles.”

http://www.chinaautoreview.com/pub/CARArticle.aspx?ID=12364
 
Last edited:

the_shootist

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I believe they are a bit more sophisticated than your comment. They may not a BMW as such, but they do meet a price point in BRIC countries and such.

They also make electric buses. Didn't see any wind up......

BYD electric double decker to hit London market in October
by Jennifer Chen 2015-07-20
No comment - Font Size +
LONDON – The world’s first pure electric zero emission double decker, which was designed and manufactured by BYD Auto Co., Ltd, will hit the London market in October, said London mayor Boris Johnson at the 1st Clean Bus Summit held in London on June 30, reported just-auto.com.

Representatives from major cities worldwide and bus manufacturers attended this event.

“Many believed that a pure electric double decker would not be possible due to the size of the battery packs required to power it,” said the mayor.


“However by working with BYD and utilizing the latest cutting edge technology, London has been able to secure another world first. The new electric double decker will enter service on Route 16 in October.”

BYD Europe said it agreed at the summit to the objectives of the Clean Bus Declaration which includes a commitment to encourage the widespread use of ultra-low and zero emission buses by global cities.

The bus maker said both the declaration and summit are initiatives of The C40 Cities Climate Leadership Group, now in its 10th year, which connects 75 of the “world’s greatest cities,” representing more than 550 million people and one quarter of the global economy. “C40 is focused on tackling climate change and driving urban action that reduces greenhouse gas emissions and climate risks while increasing the health, wellbeing and economic opportunities of urban citizens.”

Isbrand He, president of BYD Europe, told the summit: “We are delighted to be chosen by London as its partner for the world debut of our new pure electric double decker. As the mayor has said, this is genuinely world-beating new technology.”

BYD has already supplied 3,500 of its ebus models and has orders for a further 4,000. The buses in service have covered millions of kilometers of real world passenger carrying service. BYD said its advanced battery technology “is fully proven and reliable and delivers exceptional range – most bus routes can be serviced for a full day on a single charge. Operating cost is significantly lower when compared to equivalent diesel vehicles.”

http://www.chinaautoreview.com/pub/CARArticle.aspx?ID=12364
Of course, I was kidding about the windup part, but seriously, I didn't know China was any kind of major producers of automobiles
 

REO 54

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Chinese Stocks Suffer Second Biggest Crash In History, 1,500 Companies Halted Limit Down:

This was not supposed to happen.

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China's stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, overnight China officially lost control for the second time, when after a weak start to the Monday trading session, things turned very ugly in the last hour, when the Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history!

More at link:

http://www.zerohedge.com/news/2015-...rash-history-1500-companies-halted-limit-down
 

the_shootist

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Chinese Stocks Suffer Second Biggest Crash In History, 1,500 Companies Halted Limit Down:

This was not supposed to happen.

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China's stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, overnight China officially lost control for the second time, when after a weak start to the Monday trading session, things turned very ugly in the last hour, when the Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history!

More at link:

http://www.zerohedge.com/news/2015-...rash-history-1500-companies-halted-limit-down
Read the comments, they're hilarious!