Pension funds in China now allowed to invest....this is out of control

[luisHK]

Maybe that comes as a surprise to you but thanks to you and your wall mart addicted countrymen China has been running trade balance surpluses for the past 15-20 years now. Your numbers are more ore less peanuts for them. China has more or less perfectly weathered the storm during 2008 while the US boat almost sunk.

Bro , let's shave a few tens of percent off China's officially reported numbers. Let's agree they cook their books to some degree (like the US so masterfully does as well). And still after all is said and done it is a foregone conclusion that they will take over the US in terms of productive power at some point. It is a pure matter of time. it's preposterous to look at couple empty malls and claim China's growth numbers are all fake.

Voly's post still looks spot on to me, not so sure what you guys are raving about

 

[apdxyk]

it called Confirmation Bias..

 

[zdreg]

Every week that passes China is doing something new and just off the charts to charge up their failing markets and economy, this is the warning sign, I'm telling you now if you think the crisis of 2008 was bad the world has not seen anything yet....this is a telling sign of desperation, the world financial markets are going to collapse making the last crisis look like nothing ever happened.




China OKs pension funds to pour $97B into market
2 Hours AgoReuters

China Daily | Reuters
An investor looks at an electronic board showing stock information in Hangzhou, China, on Aug. 18, 2015.
China on Sunday allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channeling hundreds of billions of yuan into the country's struggling equity market.

China published a draft rule on the move for public consultation on June 30, at the height of a recent stock market rout. The State Council, or cabinet, published the finalized rules on Sunday after shares slumped nearly 12 percent last week, the worst weekly performance since June.

The Wall Street Journal also reported Sunday that the People's Bank of China is preparing to add liquidity to its banking system, adding that the move could come before the end of the month.

Despite a series of official measures aimed at supporting the market, investor sentiment has remained fragile amid continued signs of slowing economy.


Pension funds will now be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds, according to rules published on the State Council's website.

Previously, the pension funds could only invest in bank deposits and treasuries.

Together the funds have assets of more than 2 trillion yuan ($322 billion) that can be invested, meaning about 600 billion yuan ($97 billion) could theoretically go into the stock market, state media has estimated.


According to the new rules, pension funds can also invest in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.

Local governments can mandate institutions authorized by the central government to manage the pension funds.

Voly's post still looks spot on to me, not so sure what you guys are raving about

jingoistic ravings.

 

[BearRunner]

Oh and here is more news about China continuing to prop up their markets, so far this year alone the government has spent $200,000,000,000 to prop up their markets and thats just in the last 2 months, if markets start to collapse I wouldn't doubt in the next year if they put upwards of $1 Trillion .......cant wait to see what the fed does here in the US to prop up the indexes, more QE 4????

To be sure, there are some dodgy numbers in China's reporting..... But they are getting better as they open up more.

As for cash injections into markets to keep them functioning - $2 billion is chump change to help with a speed bump.
The US has no competitor in government funding to keep markets from falling into a big smoking heap.

http://www.forbes.com/sites/traceyg...outs-under-reported/#2715e4857a0b39615f076877

http://www.cnbc.com/id/45674390

http://www.dailykos.com/story/2013/2/20/1188374/-The-true-cost-of-the-Bank-Bailout

So roughly $29 Trillion and still counting to keep the markets going. This is pointing to a new normal, not a abnormal that needed help to get past. Any other time in history, we would have had a depression and come out the other side lean and strong, instead, its been kept on life support and the same issues that plagued the system have been protected and nurtured and is slowly building a even bigger problem that sooner or later will come to a head.

As for China, they have helped carry the rest of the world through since 2008 but even they need to hit the wall sooner or later and we are starting to see the symptoms of that now filtering back into our markets that had been hitching a free ride on their economy.

If China drops back from 7% to 5% and we drop from 2% to 0%, they still lead us by the same amount but that 2% they drop was helping us a lot more then most are willing to acknowledge.

We have been in a recession since 2008, its about time people remembered what it is actually called.

As a side note, when China goes through the worst of it and they write off entire cities that they have pre-built and are empty, then move the rest of the farmers into them and come out the other side firing on all cylinders with a domestic consumer economy, its going to start looking like a planned move on their part in hindsight for us in the west.

China is running a 100 year plan, what is ours?