Posts Tagged ‘cash crunch’

Regulators Look to Stress Test Chinese Banks

by Christopher Lemieuxon April 4, 2014 5:43 am BST
Chinese banks will undergo stress tests by the China Banking Regulatory Commission (CBRC), reported by the Shanghai Securities News. This further suggests that the years of easy money policies, which spurred the vast shadow banking industry, is weakening the institutions creditworthiness. Bad loans have been in accumulation as a result of suspect lending. According to […]

Yuan Continues in Collapse Mode as Rest of Asian FX Sink on Yellen

by Christopher Lemieuxon March 23, 2014 6:19 pm BST
The Chinese yuan has continued its full on collapse against the greenback as the People’s Bank of China (PBOC) widened the trading band, allowing the market to have a more hands on approach to its direction. The weakening fundamentals and uncertainty surround credit defaults continue to lead the yuan lower. The first casualty of the […]

Investors Head for Safety as Chinese Defaults Stack Up

by Christopher Lemieuxon March 21, 2014 1:28 pm BST
Global investors head for safety in Chinese government bonds in the wake of corporate defaults and the looming systemic risks that may follow. Purchases of onshore debt increased by 16 percent this year with many investors see an alternative investment opportunity with the yuan’s precipitous decline. The yuan, also known as the renminbi, has declined […]

Chinese Credit Markets Trigger Déjà vu

by Christopher Lemieuxon March 2, 2014 6:39 pm BST
The Chinese credit markets are triggering déjà vu for some analysts as banks tighten lending between each other and investors choose to hold government debt. George Soros and Bill Gross, founder and CIO of Pacific Investment Management Co. (PIMCO), are foreseeing similar results in China now as seen in the United States prior to the 2008 […]