• Tag Archives China
  • Katy Perry, Gigi Hadid Banned From China As Victoria’s Secret Fashion Show Unravels

    As we reported yesterday, this year’s Victoria’s Secret fashion show, which is slated to take place in Shanghai in just two weeks, is unraveling like a cheap lace thong thanks to Chinese authorities’ refusal to cooperate with its producers, and Communist Party’s decision to deny visas to some of the biggest stars who were slated to participate in the show.
    The latest update on the deteriorating state of affairs comes via the New York Post, which has reported that US pop sensation Katy Perry – who was slated to perform at the show – and supermodel Gigi Hadid, who was supposed to walk in the show, have been indefinitely banned from China.
    Sources told the Post’s infamous Page Six gossip section that the ‘Roar’ singer had tried applying for a visa to enter the Communist nation, but was denied by Chinese officials.
    And while she was initially informed that she’d be able to gain access, the decision was apparently reversed after the government caught wind of a controversial incident from 2015, in which Perry donned a bright, glittery dress with sunflowers on it during a performance in Taipei, the capital of Taiwan.

    This post was published at Zero Hedge on Nov 18, 2017.


  • Muddy Waters Proved Right As Huishan Dairy Prepares For Liquidation

    On March 2017, we discussed the sudden 90% drop in the share price of China’s largest dairy farm operator, the Hong Kong-listed China Huishan Dairy Holdings. The collapse occurred the day after its creditors convened an emergency meeting to discuss the company’s cash shortage and was three months after Muddy Waters’ Carson Block questioned its profitability and said the company was ‘worth close to zero.’ After the collapse in the share price we joked that ‘it suddenly almost is.’ Now we have confirmation that Block was correct, as Huishan is entering provisional liquidation, citing liabilities of $1.6 billion. From Bloomberg.
    China Huishan Dairy Holdings Co., the Hong Kong-listed company targeted by short sellers including Muddy Waters Capital LLC, is preparing for provisional liquidation in a move that could protect its assets as it negotiates with creditors. The firm had told its Cayman legal advisers to make the preparations, it said in a Hong Kong stock exchange filing Thursday.
    Huishan’s board earlier found that the net liabilities of its units in China ‘could have been’ 10.5 billion yuan ($1.58 billion) as of March 31, the company said. A provisional liquidation generally is used to safeguard a company’s assets before a court rules what action to take.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Despite Massive Liquidity Injection, Chinese Stocks, Commodities Head For Worst Week Of Year

    The PBOC stepped up cash injections this week, suggesting authorities are trying to shore up financial markets as a selloff in bonds spreads to equities… but it is not working!
    As Bloomberg reports, the central bank has already added a net 510 billion yuan ($77 billion) via open-market operations into the financial system this week, matching the third biggest weekly injection this year.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Mueller Subpoena Spooks Dollar, Sends European Stocks, US Futures Lower

    Yesterday’s torrid, broad-based rally looked set to continue overnight until early in the Japanese session, when the USD tumbled and dragged down with it the USDJPY, Nikkei, and US futures following a WSJ report that Robert Mueller had issued a subpoena to more than a dozen top Trump administration officials in mid October.
    And as traders sit at their desks on Friday, U. S. index futures point to a lower open as European stocks fall, struggling to follow Asian equities higher as the euro strengthened at the end of a tumultuous week. Chinese stocks dropped while Indian shares and the rupee gain on Moody’s upgrade. The MSCI world equity index was up 0.1% on the day, but was heading for a 0.1% fall on the week. The dollar declined against most major peers, while Treasury yields dropped and oil rose.
    Europe’s Stoxx 600 Index fluctuated before turning lower as much as 0.3% in brisk volumes, dropping towards the 200-DMA, although about 1% above Wednesday’s intraday low; weakness was observed in retail, mining, utilities sectors. In the past two weeks, the basic resources sector index is down 6%, oil & gas down 5.8%, autos down 4.9%, retail down 3.4%; while real estate is the only sector in green, up 0.1%. The Stoxx 600 is on track to record a weekly loss of 1.3%, adding to last week’s sell-off amid sharp rebound in euro, global equity pullback. The Euro climbed for the first time in three days after ECB President Mario Draghi said he was optimistic for wage growth in the region, although stressed the need for patience, speaking in Frankfurt. European bonds were mixed. The pound pared some of its earlier gains after comments from Brexit Secretary David Davis signaling a continued stand-off in negotiations with the European Union.
    In Asia, the Nikkei 225 took its time to catch up to the WSJ report that US Special Counsel Mueller has issued a Subpoena for Russia-related documents from Trump campaign officials, although reports pointing to North Korea conducting ‘aggressive’ work on the construction of a ballistic missile submarine helped the selloff. The Japanese blue-chip index rose as much as 1.8% in early dealing, but the broad-based dollar retreat led to the index unwinding the bulk of its gains; the index finished the session up 0.2% as the yen jumped to the strongest in four-weeks. Australia’s ASX 200 added 0.2% with IT, healthcare and telecoms leading the way, as utilities lagged. Mainland Chinese stocks fell, with the Shanghai Comp down circa 0.5% as the PBoC’s reversel in liquidity injections (overnight net drain of 10bn yuan) did little to boost risk appetite, as Kweichou Moutai (viewed as a bellwether among Chinese blue chips) fell sharply. This left the index facing its biggest weekly loss in 3 months, while the Hang Seng rallied with IT leading the way higher. Indian stocks and the currency advanced after Moody’s Investors Service raised the nation’s credit rating.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Bill Blain: “Stock Markets Don’t Matter; The Great Crash Of 2018 Will Start In The Bond Market”

    Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners
    The Great Crash of 2018? Look to the bond markets to trigger Mayhem!
    I had the impression the markets had pretty much battened down for rest of 2017 – keen to protect this year’s gains. Wrong again. It seems there is another up-step. After the People’s Bank of China dropped $47 bln of money into its financial system (where bond yields have risen dramatically amid growing signs of wobble), the game’s afoot once more. The result is global stocks bound upwards. Again. It suggest Central Banks have little to worry about in 2018 – if markets get fraxious, just bung a load of money at them.
    Personally, I’m not convinced how the tau of monetary market distortion is a good thing? Markets have become like Pavlov’s dog: ring the easy money bell, and markets salivate to the upside.
    Of course, stock markets don’t matter.
    The truth is in bond markets. And that’s where I’m looking for the dam to break. The great crash of 2018 is going to start in the deeper, darker depths of the Credit Market.
    I’ve already expressed my doubts about the long-term stability of certain sectors – like how covenants have been compromised in high-yield even as spreads have compressed to record tights over Treasuries, about busted European regions trying to pass themselves off as Sovereign States (no I don’t mean the Catalans, I mean Italy!), and how the bond market became increasingly less discerning on risk in its insatiable hunt for yield. Chuck all of these in a mixing bowl and the result is a massive Kerrang as the gears of finance explode!

    This post was published at Zero Hedge on Nov 17, 2017.


  • Nano-Cap Stock Of The Day – Why Is This China Construction Company Up 300% Today?

    Yesterday, it was CHF Solutions – a $10 million market cap medical device-maker – that exploded 500% higher on no news, no catalyst, no event. Today it is the turn of China Advanced Construction…
    China Advanced Construction Materials Group, Inc. produces construction materials for large-scale commercial, residential, and infrastructure developments. The Company is focused on ready-mix concrete materials.

    This post was published at Zero Hedge on Nov 16, 2017.


  • Goldman Reveals Its Top Trade Recommendations For 2018

    It’s that time of the year again when with just a few weeks left in the year, Goldman unveils its top trade recommendations for the year ahead. And while Goldman’s Top trades for 2016 was an abysmal disaster, with the bank getting stopped out with a loss on virtually all trade recos within weeks after the infamous China crash in early 2016, its 2017 “top trade” recos did far better. Which brings us to Thursday morning, when Goldman just unveiled the first seven of its recommended Top Trades for 2018 which “represent some of the highest conviction market expressions of our economic outlook.”
    Without further ado, here are the initial 7 trades (on which Goldman :
    Top Trade #1: Position for more Fed hikes and a rebuild of term premium by shorting 10-year US Treasuries. Top Trade #2: Go long EUR/JPY for continued rotation around a flat Dollar. Top Trade #3: Go long the EM growth cycle via the MSCI EM stock market index. Top Trade #4: Go long inflation risk premium in the Euro area via EUR 5-year 5-year forward inflation. Top Trade #5: Position for ‘early vs. late’ cycle in EM vs the US by going long the EMBI Global Index against short the US High Yield iBoxx Index. Top Trade #6: Own diversifed Asian growth, and the hedge interest rate risk via FX relative value (Long INR, IDR, KRW vs. short SGD and JPY). Top Trade #7: Go long the global growth and non-oil commodity beta through long BRL, CLP, PEN vs. short USD.

    This post was published at Zero Hedge on Nov 16, 2017.


  • Duties Imposed Against Chinese “Dumping” Hurt American Consumers

    For years, special interests have called on the U. S. government to ‘level the playing field’ in the form of duties, levies, and other antiquated measures. Democrats and Republicans alike have aired their grievances over the trade deficit, grumbling about exporters hurting American workers by flooding the market with cheap goods. These complaints are deeply misguided.
    Over the last decade, China has been accused of tilting international trade in its favor. Is this true? No, it is demonstrably false, as Beijing’s subsidized exports greatly benefit American consumers far more than the Chinese population.
    You can’t tell that to the U. S. government, though.
    In late October, the Department of Commerce announced that China dumped aluminum foil on the U. S. market, selling the goods at ‘unfairly low prices.’
    Trade policy under Trump hasn’t been dramatically different from his predecessors, though. Who who monitor trade deals have forgotten about President Barack Obama’s 35% tax on Chinese tires and President George W. Bush’s 20% tax on imported steel.
    US Imposes Anti-Dumping Duties Before Trump’s stop in Beijing as part of his 12-day Asian tour, the U. S. government imposed duties ranging between 96.81% and 162.24% on Chinese aluminum foil. The preliminary report determined that China dumped nearly $400 million worth of aluminum foil imports on the U. S. market in 2016 at very low prices.

    This post was published at Ludwig von Mises Institute on November 16, 2017.


  • China’s 10-year Yield Bumping 4%

    Even before President Trump’s Asia trip, Chinese 10-year sovereign bond yields have been pushing higher. And that means we should expect the same for US 10-year T-Note yields.
    I wrote about this relationship back in May 2017, noting that a big spread between the yields in China and the US can mark an inflection point for US yields. To identify when the spread was getting to an actionable point, I used 50-2 Bollinger Bands. That designation means that the bands are set 2 standard deviations above and below a 50-day moving average. I have left that moving average off the chart just to help reduce visual clutter.

    This post was published at FinancialSense on 11/16/2017.


  • Russell Napier: Debt Deflation Worries Are Starting to Rise Again

    There’s been very little deleveraging after the last financial crisis and, in fact, debt levels are at new records globally, which means investors should be thinking about the risk of ‘debtflation,’ Russell Napier, editor of The Solid Ground, told FS Insider last week (see Russell Napier on Debt Deflation: Too Much Debt, Not Enough Money for audio).
    No Deleveraging
    It isn’t the case that we’ve seen much deleveraging since the financial crisis, Napier noted. Globally, the debt-to-GDP ratio is at an all-time high, he added, significantly above the levels seen in 2007.
    Though there has been some deleveraging in the household sector, Napier stated, this isn’t the whole picture. It ignores the releveraging of the government during the last crisis, and also that corporations have been adding significant amounts of debt.
    If we look globally, emerging markets are fueling the rise to a new high in the debt-to-GDP ratio. It isn’t just China either, but other countries as well that are responsible for this effect.
    ‘If the world was fragile in 2007 because there was too much debt and not enough GDP, it is significantly more fragile today,’ Napier said.

    This post was published at FinancialSense on 11/14/2017.


  • Two-Thirds of Top Silver Miners Suffering Significant Production Declines

    The world silver market may be on the verge of a major supply crunch.
    Two-thirds of the top silver miners have suffered significant production decreases in 2017, according to information released by World Metal Statistics.
    Through the first eight months of this year, silver production in Chile has dropped 20%. Austrailian production has fallen by 19%. Silver production in Mexico is down 2%. Peru has seen a 1% production decline. And China has had the biggest drop in mine output, according to the report, falling by a whopping 25%.
    A report by SRSrocco identifies several factors driving silver mine production lower.
    I believe global silver production will take a big hit this year due to several factors including, falling ore grades, mine closures, and strikes at various projects.’
    The report highlights some of the production woes for major producers. Overall, production at top primary silver miners has fallen 9 million ounces so far in 2017 compared to the same period last year.

    This post was published at Schiffgold on NOVEMBER 15, 2017.


  • Watch Live: Trump Makes “Major Statement”

    Two days ago, President Trump tweeted that he would make a “major statement” upon his return from Asia. That time has come. Today at 3:30pmET, President Trump will let us all know… Is it war with North Korea? Rejoining TPP? Denouncing Roy Moore? Declaring victory over tax reform and healthcare repeal? Celebrating his relationship with China? Banning NYT and CNN? Admitting he really did collude with Putin?
    Of course, there’s a lot happening in Washington right now, and Trump’s hinted-at announcement could be in reference to one of any number of issues. Will he deliver an update on the administration’s position regarding tax reform as two bills that differ in dramatic fashion wend through Congress? Perhaps some type of security announcement? Or the revelation that the US has finally entered into talks with North Korea after Trump adopted a notably softer tone toward his favorite Asian antagonist over the weekend?


    This post was published at Zero Hedge on Nov 15, 2017.


  • Nobody Is Going to Bail Out Venezuela

    Henkel Garcia U, Andres Bello Catholic University (UCAB)
    Venezuela, the South American country convulsed by economic and humanitarian catastrophe, has defaulted on some of its debt after missing an interest payment due in October.
    Even as investors meet in Caracas to discuss restructuring US$60 billion in foreign debt, the country is in urgent need of international financial assistance.
    Yet few nations are rushing in to offer financial assistance to the ailing country. Under the authoritarian regime of Nicols Maduro, Venezuela is isolated in Latin America, and the United States, Canada, and the European Union have all imposed sanctions against Venezuelan officials. Maduro has at times suggested he would not even accept humanitarian aid.
    Still, no indebted nation is totally alone in this world. As a financial analyst, I know there are always international players who see opportunity in the problems of others. And for Venezuela, my home country, all hope of a bailout rests with China, Russia, and the International Monetary Fund.
    Will they do anything to help?

    This post was published at FinancialSense on THE CONVERSATION /1/15/2017.


  • China Commodities, Stocks Are Tumbling

    As we just detailed in great depth, China’s credit growth is slowing at just the wrong time – as exemplified by last night’s economic malaise and bond market weakness – and tonight we are starting to see it ripple through commodity and stock markets…
    As we noted earlier, Chinese bonds are breaking key levels as China’s credit impulse begins to weigh…
    ***
    And tonight we are seeing that deleveraging pressure filter through to equity markets…

    This post was published at Zero Hedge on Nov 14, 2017.


  • China’s Credit Growth Is Freezing Up At The Worst Possible Time

    Submitted by Gordon Johnson of Axiom Capital
    CREDIT LEADS ‘ALL OTHER’ ECONOMIC DATA IN CHINA
    China until recently euphoric credit growth, is rapidly grinding to a halt. As we published last week, and a key underpinning of our negative outlook on commodity prices through the remainder of 4Q17 and into 2018, the moderation in China’s credit seen more recently appears to be gaining momentum. The evidence?
    Well, we note that: (1) new yuan loans in October came in at CNY1.04tn (vs. expectations of CNY1.1tn, and CNY1.8tn in the prior month), with banks making up CNY663.2bn of this amount – which was below the Consensus estimate of CNY783bn for October, and down from CNY1.27tn the prior month (Exhibit 1), (2) shadow banking remains around one-third of total social financing (‘TSF’), showing little signs of providing the ‘lift’ to credit it has previously when bank debt issuance underperformed – Exhibit 2, (3) year-over-year growth of new yuan loans, on a three-month-rolling average, has slowed to just +7.5% in October (Exhibit 3), (3) Y/Y M2 growth in China hit a multi-decade low of +8.8% in October (Exhibit 4), (4) household loan growth (i.e., mortgages) continued its precipitous fall in October (Exhibit 5), (4) Y/Y corporate bond and government bond issuance continues to trend negative (Exhibit 6), all ultimately resonating in (5) broad credit growth that continues to moderate (Exhibit 7).
    In short, we believe
    China’s efforts to deleverage are, increasingly, bearing fruit. What this means, in our view, is that China’s economic indicators will continue to slow, weighing on bulk commodity prices, and ultimately industrials, metals, and mining stock prices.

    This post was published at Zero Hedge on Nov 14, 2017.


  • NOV 14/GOLD IS UP $4.00 DESPITE BANKER ATTEMPTS TO QUASH THE METAL/SILVER ALSO REBOUNDS/SILVER AND FINISHES UP 3 CENTS/LONG TERM BOND YIELDS FALTER/CHINESE MARKETS FALL/THE ONLY POSITIVE TODAY WA…

    GOLD: $1282.85 UP $4.00
    Silver: $17.08 UP 3 cents
    Closing access prices:
    Gold $1280.50
    silver: $17.02
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1285.54 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1276.15
    PREMIUM FIRST FIX: $9.39
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1286.85
    NY GOLD PRICE AT THE EXACT SAME TIME: $1277.10
    Premium of Shanghai 2nd fix/NY:$9.75
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1273.50
    NY PRICING AT THE EXACT SAME TIME: $1273.20
    LONDON SECOND GOLD FIX 10 AM: $1274.60
    NY PRICING AT THE EXACT SAME TIME. 1273.86
    For comex gold:
    NOVEMBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH:0 NOTICE(S) FOR nil OZ.
    TOTAL NOTICES SO FAR: 991 FOR 99,100 OZ (3.082TONNES)
    For silver:
    NOVEMBER
    2 NOTICE(S) FILED TODAY FOR
    10,000 OZ/
    Total number of notices filed so far this month: 874 for 4,370,000 oz

    This post was published at Harvey Organ Blog on November 14, 2017.


  • Precious Metals: Patience Is Golden

    Without growth in Western gold ETF holdings, the ‘decent but not spectacular’ demand from China and India is not strong enough to move the gold price higher. Please click here now. The SPDR (GLD-nyse) fund gold holdings currently sit at about 843 tonnes. There has been very little change in the total tonnage for several months. That’s neutral for the gold price. Governments don’t like their citizens to own much gold. Restrictions they impose (like India’s import duty as a recent example) dampen demand enough so that the price rises very slowly most of the time. Economic growth in China and India are increasing demand (the love trade) and mine supply is contracting, but the process is essentially ‘Chindian water torture’ for investors who want to see the price skyrocket like it did in the late 1970s. Investors that want ‘big action’ in the gold price need to wait patiently for the US business cycle to peak. For the price of gold to really sizzle, the business cycle needs to have aninflationary peak. That hasn’t happened since the 1970s. Many gold price analysts have used overlap charts that suggest the gold market now is akin to the 1976-1978 period. I look at fundamentals first, and charts second. From an inflationary standpoint, the US economy looks more akin to the late 1960s than the late 1970s. The winds of inflation are beginning to blow, but they won’t become a hurricane for some time. Having said that, I’ve noted that the St. Louis Fed has calculated that the QE program would have sent the US inflation rate above 30% if money velocity had been at normal levels.

    This post was published at GoldSeek on 14 November 2017.


  • US Futures, Global Stocks Extend Decline After Disappointing Chinese Data, Dollar Slides

    U. S. index futures declined for the second day in a row, dipping 0.1% to the lowest in more than a week following declines in Asian and European shares. European stocks tried and failed to shrug off the negative sentiment that spurred broad-based declines in Asia following another month of disappointing Chinese macro data…

    … eventually reversing gains as the euro strengthened on German growth data. The euro was up a fifth day, rising above 1.1700 for the first time in nearly three weeks after data showed that German GDP was on track for its best year since 2011, forcing Europe’s Stoxx 600 Index to retreat. The U. K.’s FTSE 100 Index jumped 0.1 percent, while Germany’s DAX Index gained less than 0.05%.
    Mining companies led the drop, with many commodity prices also falling in the wake of data showing China’s economy moderating. That also weighed on Asian equity gauges, though the Nikkei closed little changed after dropping for four days. The yield on China’s 10-year debt briefly breached 4 percent for the first time in more than three years. China’s CSI300 Index slid as much as 1%, its biggest intraday drop this month, as tech shares lead decline. Sanan Optoelectronics Co. slumps 7% to pace declines on the CSI300 Index; Unigroup Guoxin Co. -5.2% as second-worst performer.

    This post was published at Zero Hedge on Nov 14, 2017.


  • China Gold Import Jan-Sep 777t. Who’s Supplying?

    While the gold price is slowly crawling upward in the shadow of the current cryptocurrency boom, China continues to import huge tonnages of yellow metal. As usual, Chinese investors bought on the price dips in the past quarters, steadfastly accumulating for a rainy day. The Chinese appear to be price sensitive regarding gold, as was mentioned in the most recent World Gold Council Demand Trends report, and can also be observed by Shanghai Gold Exchange (SGE) premiums – going up when the gold price goes down – and by withdrawals from the vaults of the SGE which are often increasing when the price declines. Net inflow into China accounted for an estimated 777 tonnes in the first three quarters of 2017, annualized that’s 1,036 tonnes.
    ***
    Demonstrated in the chart above Chinese gold imports and known gold demand by the Rest Of the World (ROW) add up to thousands of tonnes more than what the ROW produces from its mines. One might wonder where Chinese gold imports come from, which is why I thought it would be interesting to analyse as detailed as possible who’s supplying China. Is one country, or only the West, supplying China? Although absolute facts are difficult to cement, my conclusion is that China is supplied by a wide variety of countries on several continents this year.

    This post was published at Bullion Star on 14 Nov 2017.