Posted on 05/27/2019 7:09:16 PM PDT by bigbob
China’s central bank said on Sunday that it would offer liquidity to Inner Mongolia-based Baoshang Bank, which the country’s financial regulators have said they would take over due to the serious credit risks it poses.
The People’s Bank of China (PBOC) also said in a statement that it and the China Banking and Insurance Regulatory Commission (CBIRC) would give more policy support to improve small- and mid-sized banks’ corporate governance.
Baoshang Bank came to prominence after its key stakeholder Tomorrow Holdings was targeted in a government crackdown on systemic risks posed by financial conglomerates.
The rare takeover, the first in nearly two decades, also highlights the long struggle of some smaller regional lenders in China, which suffer from deteriorating asset qualities, inadequate capital buffers, and poor internal controls and corporate governance.
There is concern that these feeble lenders will add to the vulnerability of country’s financial system amid the economic slowdown.
(Excerpt) Read more at reuters.com ...
The China gov't spin is that it was a "low quality small regional bank" (with 8,000 employees and 291 outlets) - so why then did the Chinese gov't rush in to take it over, knowing this would trigger international concerns. Especially since this bank has been a key partner to financier Xiao Jianhua, who the Chinese gov't has been after for years, trying to break up his financial empire.
Nobody knows if this represents the start of anything or is a one-off bailout, but if a bank run results and some of the $35 trillion in Chinese bank equities take a hike, well you can then chalk up an early victor for Trump in the US-China trade war.
Related with more detail.
so is this just a one off, or the first cracks in a damn about to burst. China’s accounting is bunk, and the economic war with trump could be causing more pain then they’d like to admit
err, dam not damn
Well we know they lie about everything but most especially their economy, but this is something they can’t cover up.
Friends who know and have lived in China say don’t underestimate the power we hold in terms of food. They need everything we are good at producing - soybeans, hogs, wheat for noodles, etc., and you can’t just open up a new food factory like you can to produce more iPhones.
And phones don’t taste good ;-)
So why does China stink at farming?
Well, then, just dam!
“” “” So why does China stink at farming?”” “”
It doesn’t. They have by far the hugest farm hog population in the world. They still need more because there are too many people to feed.
It’s mostly a polluted desert with a fraction of the arable land of the US.
I think I read recently that they had an enormous outbreak of swine flu and had or will have to destroy half of their stock.
With rising lifestyle comes increased food demand. For example, meat becomes a normal part of diet rather than a luxury item. Combine this with the ecological disasters that invariably are part of planned economies that reduce arable land, and there’s a serious need to import food. If you’re not self-sufficient in food you have serious problems. That’s China’s Achille’s heel.
I thought I read, what was it, 200 million head of hogs.
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