End of the China bull?

[notting]

In the state controlled media, which the Chinese Dictatorship uses to brainwash the people, they suggest it is vicious short sellers and Foreigners attacking China's wealth.

On the ground -

CSRC ANNOUNCEMENT: Investor Protection Bureau chief Li Liang abused his job power to provide illegal interests to others and take bribery.
BREAKING: Head of Investor Protection Bureau at China Securities Regulatory Commission is arrested for corruption and misconduct

 

[notting]

No one should have been shocked with the shock unannounced devaluation of the Yaun over night after China lured 52 countries to pour money into the Chinese-led Asian investment bank, spent the last 2 years or so inviting international investment into it's 'opening up' of markets and divested massive amounts of overvalued yaun into international real estate, commodities and treasury bonds.

It seems the dictatorship is, for the moment, content with the amount of buying they have done and are now going to manipulate the Yaun lower more in accordance with it's economy, starting with the usual punch in the face for all those who invested in Chinese orientated anti-assets.

 

[notting]

China lies - China has cut the value of the yuan for a second day, the yuan dropped 1.8 per cent in offshore trading, after the People's Bank of China set its reference rate 1.6 per cent lower at 6.3306 per US dollar.
This comes a day after the Chinese Dictators devalued the yuan by 1.9 per cent, the most on record, saying it was a "one-off move".

 

[notting]

Vietnam stands up to China by widening the trading band on its own currency, citing the move by China's central bank as a reason!
Then, as cowards do, when they have just been stood up to after bullying people - China rushes to it’s microphones urging, “everyone to stay calm," saying, "there's no economic or financial "basis" for the Yuan exchange rate to fall continuously.”
(and starts defending the Yaun against the US$ at around 6.43 Yuan)

 

[waterbottle]

What is the goal here? To stop capital outflows?

All they've done is make assets outside of China ~4% more expensive for Chinese holding RMB. My guess is they'll have to keep devaluing if they really want to a put a clamp on outflows.
Interesting to see what would happen with a 10% drop, especially to Aus real estate and exporters (although RBA might step in before SHTF, if it hasn't already...)

 

[skyQuake]

What is the goal here? To stop capital outflows?

All they've done is make assets outside of China ~4% more expensive for Chinese holding RMB. My guess is they'll have to keep devaluing if they really want to a put a clamp on outflows.
Interesting to see what would happen with a 10% drop, especially to Aus real estate and exporters (although RBA might step in before SHTF, if it hasn't already...)

Supposed to be supporting exports - July overseas shipments were trash

The yuan moved a bit more after a marketmaker reportedly got run over. Then the PBOC stepped in. Fun times.

 

[notting]

The hitch -

Plans are underway for billions of dollars of major public projects, including new highways, high-speed rail lines, water treatment plants, schools and health care facilities.

There is just one hitch: Weifang can't pay for all the projects.

In the past, city officials would have turned to low-cost loans from state-owned banks, as the national government encouraged local spending to spur economic growth. But the Chinese leadership, worried about the country's ballooning debt.

In Weifang, rapid urbanization over the last decade has saddled the local government with debts totalling 88.4 billion renminbi, or $14.2 billion, as of June 2013, the most recent data available.

Since 2007, China's overall local government debt has risen at an annual rate of 27 percent. It now totals almost $3 trillion, according to estimates from consulting firm McKinsey & Co.

Problem is you can't fund public projects, in bulk, by pawning them off onto 'the people.' Which still accumulated massive debts and the extensiveness of it was largely motivated by graft, not genuine vision (Air pollution is killing an average of 4,000 people a day in China) for 'China'.

http://www.bloomberg.com/news/articles/2015-08-13/china-air-pollution-kills-4-000-people-a-day-researchers

 

[CanOz]

Perhaps the end of the bull has come with boom. The video footage of the Tianjin explosions are insane, one wonders what the toll would have been if it had occurred during a busy week day. Lots of censoring going on, so the powers that be must be nervous about public reaction.

 

[Joules MM1]

Perhaps the end of the bull has come with boom. The video footage of the Tianjin explosions are insane, one wonders what the toll would have been if it had occurred during a busy week day. Lots of censoring going on, so the powers that be must be nervous about public reaction.

outstaaaaanding :bricks1:

https://video.twimg.com/ext_tw_video/631943333770715137/pu/vid/180x320/qqYnqluyYRMFv6ig.webm
[video]https://video.twimg.com/ext_tw_video/631943333770715137/pu/vid/180x320/qqYnqluyYRMFv6ig.webm[/video]

the enormity is in how long it takes from sighting the plume to receiving the shockfront ..7ish seconds

 

[notting]

Chinese stock market sinks over 6% after some Chinese brokerage announced to restart margin finance and short-selling business



"I Love waking up to the smell of cyanide in the morning," noted China's minister for propaganda.

And on that, I haven't heard much comment about 16% to 17% of sea born trade that comes in and goes out via The Peoples Cyanide City. Gotta have a bit of effect on the economy given infrastructure is already a laggard and meant to be the next big thing.

 

[waterbottle]

Chinese stock market sinks over 6% after some Chinese brokerage announced to restart margin finance and short-selling business

View attachment 63884

"I Love waking up to the smell of cyanide in the morning," noted China's minister for propaganda.

And on that, I haven't heard much comment about 16% to 17% of sea born trade that comes in and goes out via The Peoples Cyanide City. Gotta have a bit of effect on the economy given infrastructure is already a laggard and meant to be the next big thing.

I don't get it. The CCCP banned short selling, and its not as if the CCCP is going to yield to some brokerage firm.

Got a link?

 

[notting]

The median stock on mainland bourses traded at 72 times reported earnings on Monday, more expensive than any of the world's 10 largest markets. The ratio was 68 at the peak of China's equity bubble in 2007, according to data compiled by Bloomberg.

And this is after a 30% route!

 

[notting]

I don't get it.

Just another day I suppose.

Got a link?

Yeah sure.

 

[notting]

Worth noting what happens when Mr. Chong from the Chinese communist party lets go of the handle for few hours.



"CHONG Push it back up over the 200 day."
"Yes sir."

 

[notting]

He highlights the "failure" of local government debt reform, the "hijacking" of state-owned enterprise reform and, above all, the "fiasco" of cheer-leading an overheated sharemarket and then injecting trillions of yuan to soften the inevitable crash.

"There's nothing like a breakdown to reveal how an engine works," says Professor Naughton, in a paper to be delivered at Melbourne University's Centre for Contemporary China Studies on Friday and published next week by Stanford University's China Leadership Monitor.

Read more: http://www.smh.com.au/business/mark...ts-bonanza-20150819-gj3aj7.html#ixzz3jKrUJVLj

I kind of like it when they sound just like me. However, I did not need "a breakdown" to reveal how the engine worked and for years it's been mystifying as to how much cheer leading went on in local and global media in general given this should be no surprise.
Xi has presided over some horrible things recently,

“This is a concerted effort to discredit the entire cadre of rights defense lawyers,” said Carl Minzner, an expert on Chinese law at Fordham University. He said it was a “clear signal” that their use of high-profile cases and news media pressure to call attention to social problems would “no longer be tolerated.”http://www.nytimes.com/2015/07/23/world/asia/china-crackdown-human-rights-lawyers.html?_r=0

grim details on victims of the People’s Armed Police attack on Buddhist monks, nuns and pilgrims in the Place of the Gods, as Lhasa was traditionally known. Compiled for the Chinese leadership, the document notes that the body of one young Tibetan woman was riddled with 15 bullet holes. A compatriot felled by automatic weapons fire near the Ramoche Temple, in the ancient quarter of Lhasa, was shot 17 times.

This official chronicle of the massive attack on Buddhist demonstrators in central Lhasa in mid-March of 2008 also demonstrates the massive fabrication of “facts” that Communist Party leaders in Tibet and in Beijing presented to the world about how they handled the protests and the cause of deaths linked to the demonstrations, Tsomo pointed out.http://thediplomat.com/2015/04/chinas-crackdowns-in-tibet/

Lets' reward them with another (winter) Olympics! We still run films about how shameful it was for the majority of Germans who new about the Holocaust but said nothing. We know as much as they did. Maybe they will make a documentary about us one day

but I'm still giving Xi the benefit of the doubt. He was handed a catastrophe wrapped in a fortune cookie. He has to dance to the tune of the communist party until he has purged the monsters, (pretty much all of the CCP) and hopefully he will then be able to show a kinder face.
No one will look good trying to manage what has been mismanaged and lied about for about 25 years on the 'rich is glorious' front.

 

[CanOz]

China has billions of dollars worth of SOE's. Imagine the debt reform that they could unleash by selling state owned assets. Unfortunately, even though this was to be the 'next boom' in China, the party will take this opportunity to their grave.

CanOz

 

[waterbottle]

So essentially what this all boils down to is that the CCCP - the only organisation to date that has managed to successfully control 1 billion people over multiple decades to improve the lives of CCCP members - is willing to let it all go to hell and face civil unrest?

 

[CanOz]

So essentially what this all boils down to is that the CCCP - the only organisation to date that has managed to successfully control 1 billion people over multiple decades to improve the lives of CCCP members - is willing to let it all go to hell and face civil unrest?

Its one reason i wanted to leave, i don't think this is going to end well....

 

[waterbottle]

From what I can see in response to the Tianjin explosions, the CCCP is still doing well at controlling the populous... or maybe that's just my observer bias given the lack of western articles describing revolt.

 

[notting]

It seems to be the most misunderstood aspect of China - the so called 'threat of social unrest.'
Mao killed, tortured starved and worked to death about 10 times more than Hitler and Starlin. Yet managed to maintain control over unrest.
China is a long way from the Mao experience despite it's continuing horrific legacy that is still going on on a massive scale.
They machine gun unrest and will even bomb it from the sky just like Syria, they have done it before and will use tanks on the people if they need to.
The people are powerless, voiceless and have no way of causing hardly a ripple, no matter what the Dictators do to them.

The thing will unravel if the Dictators turn on each other and so far Xi has held that off whilst purging quite a few so far.