Aug 27

Yuan Strengthens Most Since March, China Unveils New Bailout Source After Rescue Fund Runs Out Of Fire-Power (ZeroHedge, Aug 27, 2015):

Update: China readies new bailout mechanism – pooling CNY2 Trillion of Pension funds for “investment”

A busy night in AsiaPac before China even opens. Vietnam had a failed bond auction, Japanese data was mixed (retail sales good, household spending bad, CPI just right), Moody’s downgrades China growth (surprise!), China re-blames US for global market rout, and then the big one hits – China’s bailout fund needs more money (applies for more loans from banks) – in other words – The PBOC just got a margin call. China margin debt balance fell for 8th straight day (although the short-selling balance picked up to 1-week highs). China unveiled some economic reforms – lifting tax exemption and foreign real estate investment rules. PBOC fixesds the Yuan 0.15% stronger – most since March, but even with last night’s epic intervention, SHCOMP looks set for its worst week since Lehman.

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One Response to “Yuan Strengthens Most Since March, China Unveils New Bailout Source After Rescue Fund Runs Out Of Fire-Power”

  1. Marilyn Gjerdrum Says:

    I knew there was trouble when they apprehended the state pension funds to shore up their markets last week.
    I knew there was more chaos coming when they dumped $100 billion in US treasuries in the last week……..

    The most disturbing thing I have read is that China has a debt level of 250% of GDP…… has it at 7%….I have often commented that low number had to be a lie………….but 250% debt to GDP is worse than any Euro nation (except Ireland) or the US…..

    The west has made the mistake of ceding much of the world production economy to China without once caring or considering the type of system they were tying in with regardless of slave labor, dreadful working conditions, excessive corruption…greed of the few have made it a mess for everyone else.

    The ghost cities ought to have warned anyone with sense…………

    If China goes down economically, so goes western civilization…….at least for a while….

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