Posted on 07/10/2024 6:19:40 PM PDT by yesthatjallen
The Chinese banking sector is facing a severe crisis. In just one week, 40 banks disappeared, and the collapse of Jiangxi Bank has further deepened the sector's problems. Experts warn that the situation could have severe consequences for the global economy.
Reports from China indicate the collapse of one of the banks. The portal renminbao.com published a report from outside the headquarters of Jiangxi Bank, which concerned clients stormed over bankruptcy rumors. The bank had previously informed that its profits could drop by 30% due to customers' loan repayment issues.
The Economist described the situation in the Chinese banking market. It was noted that approximately 3,800 banking institutions were threatened in China. Their assets are 55 trillion yuan ($7.5 trillion), representing 13% of the country's banking system. The magazine emphasizes that these banks have long been poorly managed and have accumulated vast amounts of bad loans.
The report states that many of them lent money to developers and local governments, exposing themselves to the impacts of the real estate market crisis. The authors note that in recent years, some banks have revealed that 40% of their portfolios are non-performing loans.
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China doesn’t have a problem with letting its system reset, even if the masses starves.
That’s why China might come out ok.
the idiots turned on the goose that laid the golden egg and started going after their best capitalists.
It was over exactly then, and sped along by Trump standing up to them mistreating us in trade.
Many investors in China have never experienced a bear market.
While not as true as it used to be, many people are far over leveraged. Because of lax lending laws some people have three, four, or five mortgages on their home. They used used the money to invest in stocks. If the economy goes South, there is not enough collateral to cover the defaulted loans.
The corruption in the Chinese financial markets is one the big problems in the PRC
Their financial real estate sectors were huge ponzu schemes.
They have never been a free or market economy so “collapse” is a relative thing.
There’s not much to collapse. A bubble popping is not collapse.
People don’t realize their median income has never even reached Mexico levels.
How do communist banks... “collapse”?
So will China’s collapse cause it to implode or will it put them on more of a war footing?
Not a problem, Hunter Biden and daddy will bail them out. Joe is handing out our money like candy. Hunter just has to remember “10 percent for the big guy!”.
China’s got an even larger shadow banking economy outside of traditional, regulated banking. Nobody knows how shaky that system is at this point.
China’s got an even larger shadow banking economy outside of traditional, regulated banking. Nobody knows how shaky that system is at this point.
The average Chinese investor is a greedy little bastard who would give up their family income to make .5% more than their neighbors.
Couldn’t happen to a nicer bunch of folks.
I try to tell anyone who will listen that using the words, terms, phraseology of the Free Enterprise system (capitalism for those of you in Rio Linda), using that vocabulary for anything related to the Chicoms is ridiculous. Hussein tried to do the same thing with the tyrannical Unaffordable Health Care system he forced upon us. He lied about everything before and after. The farce of the different ‘levels’ Gold, Silver, Bronze plans, when, in reality, every ‘plan’ had all the same mandates and limitations. The only ‘competition would be to how soon real free enterprise would disappear.
The Chicoms are in charge of everything that happens. They pretend to discuss economics. They can build entire cities that are never occupied. Who will criticize or complain? Only someone who wants to stop breathing. They can destroy entire cities. Who is to stop them? They can create a virus. Who will stop them?
Hussein once stated how much he admired the Chicoms and their ‘system.’ He stated that there is very little haggling over how to proceed, on large and small things. “The decision is made” and they move forward.
If the customers complain all they have to do is send in the police, military, and local thugs.
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