Thread by @desertfox61I, UNTHINKABLE but Not unexpected First time in nearly 30 yearChinese Govt would [...]

UNTHINKABLE

but Not unexpected

First time in nearly 30 year

Chinese Govt would take control of a bank

The troubled inner Mongolia-based Baoshang Bank, due to the serious credit risks it poses. https://www.zerohedge.com/news/2019-05-27/big-wake-call-chinese-bond-market-roiled-first-ever-bank-failure

"A Big Wake Up Call": Chinese Bond Market Roiled By First Ever Bank Failure

"Participants in the interbank market, who didn’t differentiate credit when lending to banks on the belief that they will never go bankrupt, have now become more cautious."

https://www.zerohedge.com/news/2019-05-27/big-wake-call-chinese-bond-market-roiled-first-ever-bank-failure

This follows

A year that is shaping up to be the biggest by far for defaults in China’s $13 trillion bond market
https://www.bloomberg.com/news/articles/2019-05-07/china-defaults-hit-record-in-2018-the-2019-pace-is-triple-that via @markets

China Defaults Hit Record in 2018. 2019 Pace Is Triple That

This year is shaping up to be the biggest by far for defaults in China’s $13 trillion bond market, highlighting the widening fallout from the government’s campaign to rein in leverage.

https://www.bloomberg.com/news/articles/2019-05-07/china-defaults-hit-record-in-2018-the-2019-pace-is-triple-that

On heels of
Cracks in housing bubble
With protests at offices of developers due to sudden plummeting of value of new apartments

&
millions of small investors lost life savings in online P2P lending platforms that imploded following widespread fraud https://p.dw.com/p/3Ds0D?maca=en-Twitter-sharing

China's P2P lenders face crisis, investors face ruin

A major upheaval is underway in China's peer-to-peer (P2P) finance sector after numerous cases of fraud and negligence. As loans helped finance cars and property, could the crisis worsen the countr...

https://p.dw.com/p/3Ds0D?maca=en-Twitter-sharing

Bad news does Not seem to stop

Now Kazakh bank holding BRI fund folds

China's $1.9 Billion Belt-and-Road Rail Project Goes Off Track https://www.bloomberg.com/news/articles/2019-06-03/china-s-1-9-billion-silk-road-rail-project-goes-off-track

China's $1.9 Billion Belt-and-Road Rail Project Goes Off Track

A planned light-railway system that was the most high-profile project in Kazakhstan of China’s Belt and Road infrastructure program has hit a wall.

https://www.bloomberg.com/news/articles/2019-06-03/china-s-1-9-billion-silk-road-rail-project-goes-off-track

Weakness in Chinese economy getting exposed

Thread

https://twitter.com/IndoPac_Info/status/1136779286755434497?s=19

By @IndoPac_Info

https://twitter.com/IndoPac_Info/status/1136779286755434497?s=19

This was waiting to happen

With high debt GDP ratio

China sounds alarm over bad-loan surge at small banks https://www.ft.com/content/8d163fec-59b9-11e9-9dde-7aedca0a081a?segmentid=acee4131-99c2-09d3-a635-873e61754ec6

China sounds alarm over bad-loan surge at small banks

Fresh questions over bailouts and failures as bad-debt rate tops 40% at some lenders

https://www.ft.com/content/8d163fec-59b9-11e9-9dde-7aedca0a081a?segmentid=acee4131-99c2-09d3-a635-873e61754ec6

This was bound to happen https://twitter.com/SCMPNews/status/1177111022898954240?s=19

https://twitter.com/SCMPNews/status/1177111022898954240?s=19

This is indicative of turmoil in China's financial sector https://sc.mp/glr53

Could this bank’s problems herald more pain for China’s banking sector?

China’s troubled Bank of Jinzhou is seeking to raise 6.2 billion yuan (US$866 million) just two months after it secured a 3 billion yuan (US$419 million) bailout.

https://sc.mp/glr53

Escalating Financial Crisis

China takes over HengFeng Bank, in third nationalisation since May https://sc.mp/i3eo

China takes over HengFeng Bank, in third nationalisation since May

It’s also the second of several banks in Xiao’s financial empire to be put under state ward, after the May 24 nationalisation of Baoshang Bank in Inner Mongolia’s Baotou city.

https://sc.mp/i3eo

No Action to address this major issue facing Chinese Banking

RECAPITALISATION

China’s banks lack capital to back large-scale lending to boost growth, says Fitch https://sc.mp/gop5

China’s banks lack capital to back large-scale lending to boost growth, says Fitch

Despite pressure from Beijing to lend to private sector and help arrest China’s economic downturn, the country’s banks may not have enough money.

https://sc.mp/gop5

This is adding to woes of Chinese planners

Bank Collapse In China:
$40 Trillion Dollar Debt Heading To Economic Collapse
With Chinese banking regulators have at least 500 banks flagged for potential collapse.

https://www.investmentwatchblog.com/bank-collapse-in-china-40-trillion-dollar-debt-heading-to-economic-collapse-chinas-yuan-crash/

People’s Bank Of China:
It's 2019 China Financial Stability Report, published on Monday (Nov. 25) — and found that about 586 banks and financial institutions were highly risky,

- https://www.pymnts.com/news/banking/2019/peoples-bank-of-china-hundreds-of-countrys-banks-at-risk/

People's Bank Of China: Country's Banks At Risk | PYMNTS.com

Central bank People's Bank Of China said in its financial stability report that about 13 percent of the country's financial institutions are "high risk."

https://www.pymnts.com/news/banking/2019/peoples-bank-of-china-hundreds-of-countrys-banks-at-risk/

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