Yes, Australia and Canada feeling it the most cause both economies were the biggest beneficiaries of China's Capital Flight... The housing in Vancouver is getting obliterated too, some fire sales happening, housing and commercial. Unfortunately for Australia, the Interest-Only Mortgages will add to the recession and really hurt families, leading to even bigger housing deflation and eventually over-supply from families needing to sale and bankruptcies on the market. Australia's two main source of income, exports and Foreign Money Inflow will take a hit for sure, but debt is somewhat low... Government can boost investments and if Aussie's innovate well, you guys will be back on track
China Default Thread
- Thread starter Stockolio
- Start date
Yes, Australia and Canada feeling it the most cause both economies were the biggest beneficiaries of China's Capital Flight... The housing in Vancouver is getting obliterated too, some fire sales happening, housing and commercial. Unfortunately for Australia, the Interest-Only Mortgages will add to the recession and really hurt families, leading to even bigger housing deflation and eventually over-supply from families needing to sale and bankruptcies on the market. Australia's two main source of income, exports and Foreign Money Inflow will take a hit for sure, but debt is somewhat low... Government can boost investments and if Aussie's innovate well, you guys will be back on track
https://www.caixinglobal.com/2019-05-27/another-chinese-smartphone-maker-goes-bust-101420369.html outline.com if hit by paywall
And for the wtf moment of the day, this crook actually got " praised " and likely funded by the local government, I have a feeling cpp might kidnap him and never be seen again for making them look stupid...
https://www.caixinglobal.com/2019-0...ics-defying-car-company-claims-101419655.html
3 days later...
https://www.caixinglobal.com/2019-0...y-water-fueled-car-controversy-101420459.html
And for the wtf moment of the day, this crook actually got " praised " and likely funded by the local government, I have a feeling cpp might kidnap him and never be seen again for making them look stupid...
https://www.caixinglobal.com/2019-0...ics-defying-car-company-claims-101419655.html
3 days later...
https://www.caixinglobal.com/2019-0...y-water-fueled-car-controversy-101420459.html
Read the Canadian Housing Bubble thread, you would think everything is fine. @Nine_Ender where are you?
A Canadian cousin of mine texted me earlier saying that Canadian banks are starting to prepare for growth in bad loans.
Canadian banks are some of most profitable and strongest in the world... Mortgage industry is strict and good, Canadian financial laws are quite good, and a lot of non declared money in Canada which don't show up in the books but is adding to GDP. Richmond which is a city right beside Vancouver, on paper is one of the poorest in BC, on paper has many low income residents and yet has German cars on German cars, and had a healthy RE until china's recession started.
The problem I see here will be the Construction Industry, they will take a serious hit and a lot of Canadians seem to have dipped in Home Equity Loans, when recession is all said and done, quite a few people might have negative equity in their house. Interesting to see how it'll play out, you couldn't go anywhere in Vancouver the past few years without seeing Home Equity Loan products. I do not think Canada will be hit any harder then other places, except for Housing and the slowdown of Foreign Capital Inflow. Bubble Trouble on the West Coast
https://www.caixinglobal.com/2019-0...mpany-swaps-assets-among-units-101399060.html
Shanghai-based China CSSC Holdings Ltd., a subsidiary of China State Shipbuilding Corp. (CSSC) will take over the shipbuilding assets of Huangpu Wenchong Shipbuilding and Guangzhou Shipyard International from the Guangzhou-based subsidiary CSSC Offshore & Marine Engineering Company Ltd. At the same time, the Guangzhou subsidiary will get the marine propulsion assets of Hudong Heavy Machinery, currently owned by the Shanghai unit.
Additionally, CSSC Holdings will take over Jiangnan Shipbuilding from the parent company. The Shanghai-based shipyard is building China’s third aircraft carrier for the military and produces the world’s largest container ships.
http://www.thestandard.com.hk/section-news.php?id=208103
CSSC is going public in HK Exchange ? A state owned military producer of the china communist party is going public ? How broke are they ? Wtf is going on ? The situation might be way worst then the most bearish case anticipated. No more USD for you!
https://www.scmp.com/economy/china-...tal-outflow-controls-have-gone-extreme-former
Shanghai-based China CSSC Holdings Ltd., a subsidiary of China State Shipbuilding Corp. (CSSC) will take over the shipbuilding assets of Huangpu Wenchong Shipbuilding and Guangzhou Shipyard International from the Guangzhou-based subsidiary CSSC Offshore & Marine Engineering Company Ltd. At the same time, the Guangzhou subsidiary will get the marine propulsion assets of Hudong Heavy Machinery, currently owned by the Shanghai unit.
Additionally, CSSC Holdings will take over Jiangnan Shipbuilding from the parent company. The Shanghai-based shipyard is building China’s third aircraft carrier for the military and produces the world’s largest container ships.
http://www.thestandard.com.hk/section-news.php?id=208103
CSSC is going public in HK Exchange ? A state owned military producer of the china communist party is going public ? How broke are they ? Wtf is going on ? The situation might be way worst then the most bearish case anticipated. No more USD for you!
https://www.scmp.com/economy/china-...tal-outflow-controls-have-gone-extreme-former
Bank of Jinzho with 105 Billion of Assets about to collapse, LOL...
The Bank of Jinzhou, a city commercial bank in Liaoning Province with some $105 billion in assets, notably bigger than Baoshang, announced that its auditors Ernst & Young Hua Ming LLP and Ernst & Young had resigned, not long after the bank announced it would delay the publication of its annual reports.
For those confused, the delay of an annual report and the resignation of an auditor, means a bank failure is not only virtually certain but practically imminent.
As the bank - which first got in hot water in 2015 over its exposure to the scandal-ridden Hanergy Group - writes in a filing on the Hong Kong Stock Exchange, E&Y was first appointed as the auditors of the Bank at the last annual general meeting of the Bank held on 29 May 2018 to hold office until the conclusion of the next annual general meeting of the Bank. That never happened, because on 31 May 2019, out of the blue, the board and its audit committee received a letter from EY tendering their resignations as the auditors of the Bank with immediate effect.
The reason for the resignation: the bank refused to provide E&Y with documents to confirm the bank's clients were able to service loans, amid indications that the use of proceeds of certain loans granted by the Bank to its institutional customers were not consistent with the purpose stated in their loan documents.
As a result, "after numerous discussions and as at the date of this announcement, no consensus was reached between the Bank and EY on the Outstanding Matters and the proposed timetable for the completion of audit." As a result, after a clear breakdown in relations with its own auditor, the Board decided to appoint Crowe (HK) CPA Limited as the new auditors of the Bank to fill the casual vacancy following the Resignation and to hold the office until the conclusion of the 2018 annual general meeting of the Bank (we are taking the under with lots of leverage as Crowe will likewise quit in the coming weeks if not days).
And confirming that not even the bank's management believes this "justification" will be enough to avoid a rout in the stock, the bank reported that it has requested the trading in the H shares (which was frozen on April 1) on The Stock Exchange of Hong Kong Limited to be suspended until the publication of the 2018 Annual Results. For anyone who hopes that these shares will ever be unfrozen for trading, there are a few bridges in Brooklyn that are for sale.
The real question facing Beijing now is how quickly will Bank of Jinzhou collapse, how will Beijing and the PBOC react, and what whether the other banks on the list above now suffer a raging bank run, on which will certainly not be confined just to China's small and medium banks
The Bank of Jinzhou, a city commercial bank in Liaoning Province with some $105 billion in assets, notably bigger than Baoshang, announced that its auditors Ernst & Young Hua Ming LLP and Ernst & Young had resigned, not long after the bank announced it would delay the publication of its annual reports.
For those confused, the delay of an annual report and the resignation of an auditor, means a bank failure is not only virtually certain but practically imminent.
As the bank - which first got in hot water in 2015 over its exposure to the scandal-ridden Hanergy Group - writes in a filing on the Hong Kong Stock Exchange, E&Y was first appointed as the auditors of the Bank at the last annual general meeting of the Bank held on 29 May 2018 to hold office until the conclusion of the next annual general meeting of the Bank. That never happened, because on 31 May 2019, out of the blue, the board and its audit committee received a letter from EY tendering their resignations as the auditors of the Bank with immediate effect.
The reason for the resignation: the bank refused to provide E&Y with documents to confirm the bank's clients were able to service loans, amid indications that the use of proceeds of certain loans granted by the Bank to its institutional customers were not consistent with the purpose stated in their loan documents.
As a result, "after numerous discussions and as at the date of this announcement, no consensus was reached between the Bank and EY on the Outstanding Matters and the proposed timetable for the completion of audit." As a result, after a clear breakdown in relations with its own auditor, the Board decided to appoint Crowe (HK) CPA Limited as the new auditors of the Bank to fill the casual vacancy following the Resignation and to hold the office until the conclusion of the 2018 annual general meeting of the Bank (we are taking the under with lots of leverage as Crowe will likewise quit in the coming weeks if not days).
And confirming that not even the bank's management believes this "justification" will be enough to avoid a rout in the stock, the bank reported that it has requested the trading in the H shares (which was frozen on April 1) on The Stock Exchange of Hong Kong Limited to be suspended until the publication of the 2018 Annual Results. For anyone who hopes that these shares will ever be unfrozen for trading, there are a few bridges in Brooklyn that are for sale.
The real question facing Beijing now is how quickly will Bank of Jinzhou collapse, how will Beijing and the PBOC react, and what whether the other banks on the list above now suffer a raging bank run, on which will certainly not be confined just to China's small and medium banks
Now it's getting serious Stockolio. Short Australian iron ore companies?, shift assets to gold?, thinking, thinking.....
Bank of Jilin and Evergrowing Bank are up next... PBOC will probably have an announcement of take over Jinzhou within weeks, Interbank Markets likely to get out of whack again this week, more injections!
Can't recommend anything outside of US Markets really, won't be hard picking a right short tho, question is which one will yield best results