Posted on 07/18/2018 10:55:29 AM PDT by SeekAndFind
High-profile businessman Zhou Jiancan was last seen at the five-star Shangyu International Hotel on January 30, where he had been countless times before to host conferences and entertain clients in the small city in eastern China.
But on that afternoon, the 55-year-old head of private firm Zhejiang Jindun Holding Group was alone and climbed to a great enough height in the 30-storey building to leap to his death, according to a police report.
Zhou was the embodiment of wealth and success in Shangyu and just days before had been in talks with people from Bangladesh about a multibillion-dollar project to build a coal-fired power plant there, Shangyu Daily reported.
But his death brought down a house of cards, revealing a mountain of debt and setting off dozens of lawsuits as creditors began chasing their money.
It also revealed the perilous position of private companies, which are denied financing from mainstream banks and often must resort to China’s shadowy world of wealth products to stay afloat.
Zhou’s demise is a dramatic and lurid outcome for what would otherwise be considered the dry and technical policy shift by Beijing to tighten credit as part of its resolve to curb China’s debt, a top priority by Chinese President Xi Jinping.
China’s state banking system largely exists to serve local governments and state-owned enterprises, so private firms must often rely on the “shadow banking” industry – alternative routes of funding that have fed unprivileged private companies because they have restricted access to bank lending – for financing.
But the authorities have started to tighten up on shadow banking, with off-balance-sheet funding plunging by US$190 billion in the first half of 2018 compared to the rise of 2.5 trillion yuan over same period last year, according to data from the People’s Bank of China.
(Excerpt) Read more at scmp.com ...
Signs of stress have also become apparent in China’s corporate bond market, where private companies have been encouraged to seek financing. By early June, 20 corporate bond defaults totaling 14.2 billion yuan had occurred, many of them by private, listed firms, according to a report from China Central Depository and Clearing, a state-run settlement service for financial products. Rising default risks have worsened private firms’ bond ratings, pushed up the costs of issuing bonds, and forced some to shrink the scale of issuance.
We can win the trade war, despite all the help from the corrupt MSM and Democrats. The Chinese are trying to hold out, hoping against hope, that something might happen to assist them, but alas, such help will not be coming to their aid anymore than has been proffered by the MSM.
And here we have more evidence, their fascist system (I say fascist because it has the illusion of private ownership of industry but under total government control, which is a hallmark of fascism, not communism) is a flop and teetering on the brink. They'll come to the table soon enough. Trump's gonna win this one.
Its not falling that kills you, its the sudden stop at the bottom.
Math is very simple!
We sell China $300 Billion annual.
China sells US $800 Billion annual.
Which is why we have $500 trade deficit with China.
IF We impose tariffs on all Chinese imports of $800,
China CAN NOT MATCH. Max they can tariff US goods is $300.
WIN-WIN for US, Lose-Lose for China.
Can you imagine losing $500-$800 export business EVERY YEAR? President Xi will seek asylum in Taiwan.
Ping.
Over the last four or five years, I find it comical to argue fascism with modern precious snowflakes. I’ve been studying it off and on since the early 70’s. They only know that fascists are the 1% and the evil people that believe in nationalism as opposed to globalism.
So when I make comments like yours, they, in typical arrogantly ignorant leftist fashion, tell me I’m an idiot and don’t even know what fascism is. :)
They know what fascism is. It's meanies being in charge. Or people they disagree with. But usually meanie is defined as "doesn't agree with me' so same thing.
Waiting on my Wife’s daughter to return from internship in Shanghai. She made a comment to her Mother about shanghai but did not go into the details. I am sure she saw the Ghost cities, maybe she will have some photos and stories to share.
Yes. To them I’m a fascist, woman hating alt right Nazi member of the 1%.
And a rapist, pedophile and just no damned good.
And I forgot to mention Jewish, too. :)
RE: I am sure she saw the Ghost cities, maybe she will have some photos and stories to share.
She has to get out of Shanghai to see them.
RE: IF We impose tariffs on all Chinese imports of $800,
China CAN NOT MATCH. Max they can tariff US goods is $300.
________________________________
A very lovely thought, yes, that will collapse China’s economy. But what will it do to OUR economy and why would we want that to happen to us?
Given their leverage, I doubt they can hold out long if Trump’s tariffs seriously cut into their exports. It’s not like they have a lot of extra capital sitting around and can afford to wait.
As a first hand victim of our machines unable to be sold in Japan, but Japanese equivalent machines coming in freely, the simple answer is that in an all out trade war, the countries with trade deficits will do much better than those with trade surpluses.
Buyers will still need products, and instead of importing we will manufacture locally. Which translates into more middle class manufacturing jobs. Americans need to stop thinking of next quarter results, and focus on next 3-5 YEARS results.
Private equity firms have been leaving China in droves since 2011. They set sail for Southeast Asia, South America and India.
You're right, it's not rocket science, it's simple arithmetic regards China vs USA. In an all out trade war, Chinese products become more expensive and Americans will shop around for affordable products elsewhere - the Chinese lose. American exports to China become expensive so American producers look for buyers elsewhere and seek local buyers - Americans win (producers may balk at losses overseas but local buyers pay more locally to match now-more expensive Chinese goods).
Thank you. Your post is clear and intelligent and different from the article from the Morning Post above.
From the article. “To build a coal-fired power plant” is an unreasonable wish. To build IFR reactors and plasma recyclers are reasonable wishes.
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