6 MONTHS, BANKS ARE FALLING LIKE DOMINOES. IS RECESSION IMMINENT IN CHINA ?.
INCREASED DEBTS LOAN PAYMENTS: The Government of China has again had to go out to rescue the Chinese Banks, after a wave of bankruptcies that seems to have no end. The Asian giant “seems” to have a problem he doesn’t want to recognize. The National Bank of China denies it, but the truth goes further, between zombie companies and banks begin to be nationalized in secret to avoid a crisis in China.
Add and follow 6 months of bankruptcies, stampedes and bailouts of Chinese banks
Baoshang: “For the first time a bank in China goes bankrupt,” a bottomless house of cards …
The first to fall was in May, the Baoshang Bank, then it was the Jinzhou Bank 1. Then, two months ago, in September 2019, the Heng Feng Bank of China with 1.4 billion [10 ^ 12] yuan in assets , failed in silence and was nationalized in silence. Today a prominent fourth Chinese bank [Yichuan Bank] was on the verge of collapse under the weight of its bad loans, only this time the failure was much less silent, as the rural loan holders swarmed the bank’s retail branches, demanding their Furious money in demonstration, the situation that Beijing most fears, is a bank stampede [massive and rapid withdrawal of funds]. This was the last, most desperate attempt by China to project stability and reassure the public, “everything is fine”,
At the end of May for the first time in three decades, the People’s Bank of China (PBOC) and public banking regulators took control of an insolvent bank. They did so publicly with the apparent objective of sending a message to other banks to control the risks associated with the loans. In doing so they may have triggered the ruling, of one of the chains, of one of the largest, dull and least regulated banking systems in the world: China’s local and regional banks were always poorly regulated, earning the epithet of parallel banks. It is estimated that the total assets of China’s small and medium-sized banks are close, and equal to the four gigantic public banks that are regulated. A crisis that spreads from there could have serious consequences.
The Chinese government has a problem with its banks: the Harbin Bank, a new bailout
Concerns about the Chinese banking system begin to be high in the global financial system, as well as what can happen if Chinese banks go “to hell”. As the technical bankruptcies happen, plus the rescue by the Government of Xi Jinping, more red lights are going on in the world economy.
The last bank rescued “by sneaking” has been the Harbin Bank, a medium-sized Chinese entity, as revealed by the Wall Street Journal, has had to change its private shareholders for public capital to avoid bankruptcy.
Harbin Bank, is one of the largest banks in the northeastern province of Heilongjiang, northeast of China, with assets of 622 billion yuan on its balance sheet as of June 30, 2019, listed on the Hong Kong stock exchange. It has become the fifth bank, after Baoshang Bank, Bank of Jinzhou, Heng Feng Bank, and Henan Yichuan Rural Commercial Bank, which will be rescued by the State, becoming 48% controlled by two government entities, after that six private shareholders transfer their shares worth US $ 2100 million, according to a statement issued Friday night by the entity itself.
China warns the world of a possible economic recession
China in recession? Not for the world of luxury
US and China, the risks of a new recession
With financial markets in impending recession, plus a hundred countries under Marxist attacks, a threat is added worldwide for a possible “new” planetary recession. Meanwhile, the US and China have decided to resume certain agreements … Amid the supposed “trade war” that will have unforeseeable consequences.
“The world economy is going to recession”
The public debt and the Chinese Recession will be behind the next economic ‘shock’
China’s Debts are a tangle that worries economists around the world. Under the International Payment Bank, China’s total debt amounted to 252.7% of its GDP.
The Chinese sold their false liquidity to the West, today it also falters … an eye for an eye, it is clear that in China “Not everything that Shines is gold”.