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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe next shoe to drop in China? The banks
HONG KONG (MarketWatch) To many investors, the problem with China is a suspicion that things could be much worse than is officially being let on.
My own experience with a Bank of China ATM at the Hong Kong-Shenzhen border last Friday certainly got me thinking just how bad is Chinas liquidity crunch?
The problem was the ATM menu options had been limited to funds balance, transfer and deposit but none for withdrawal. And it did not appear personal, as all three cash machines were the same, refusing locals and foreigners alike.
This might be dismissed as merely anecdotal but it comes in the same week that global markets have zeroed in on Chinese capital flight risks and authorities have been scrambling to inject liquidity into the banking system.
In the past week the central bank made three interventions to boost liquidity, totaling some 350 billion yuan. Despite this interbank rates have remain elevated and reports suggest the Peoples Bank of Chinas next move will be to cut bank-reserve ratios to free up potentially another 678 billion yuan for lending. ................(more)
http://www.marketwatch.com/story/the-next-shoe-to-drop-in-china-the-banks-2015-08-24
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The next shoe to drop in China? The banks (Original Post)
marmar
Aug 2015
OP
Recursion
(56,582 posts)1. Yeah, the exposure there is terrifyingly opaque
India is bracing like crazy.
Gman
(24,780 posts)2. Talk of China falsifying numbers has been ongoing
For it seems at least a couple of years. But that game cannot last.
HFRN
(1,469 posts)3. China is showing signs of bubble
I know in a Midwestern college town nearby, in the last couple of years, the streets have exploded with very high end luxury cars, driven by Chinese students, bubble 'money to burn' behavior
(not meant as a criticism, but just as an observation, that's what a bubble looks like, when money has come very big, very fast, and very easy)