8kun Midnight Riders Posts (1)
#70036 at 2021-03-14 00:52:37 (UTC+1)
QR Midnight Riders #312: Capt America Edition
China's Plan to Trim Debt Makes Stock-Market Reforms More Urgent
China's policy makers, spurred to act by ballooning debt, are trying to get the country's $10.7 trillion stock market to play a larger role in funding the economy.
Authorities have signaled the cost of borrowing will rise as the economy gains traction, putting the spotlight on the stock market as an alternative source of funding. While multiple interest-rate cuts and cash injections from the central bank helped keep Chinese companies afloat last year, the quick buildup of debt now poses a significant risk to the financial system.
Measures under consideration include changing the system for initial public offerings on main exchanges in Shanghai and Shenzhen, a move that could reduce the backlog of hundreds of companies waiting to list. And as authorities loosen control over the stock market, they're getting tougher on firms that want to access it: the securities regulator may set a higher bar for companies looking to sell shares on its experimental Star venue.
Swing away
The majority of China's 4,000-odd stocks can move a maximum 10% in either direction, or 5% for companies with troubled finances. The single-stock restrictions have been relaxed in two of China's experimental trading venues: in August, the cap was doubled to 20% for shares on Shenzhen's ChiNext after the system was tested in Shanghai's Star board. The next step is to deploy those changes to the cities' two main boards.
Market impact: A wider trading band could encourage more active trading,(no shit Sherlock) which improves market liquidity. But expanding the band to the main boards leaves China's biggest and most-owned companies vulnerable to extreme moves – and its fund managers susceptible to redemptions.(that's easy…just limit or shut off redemptions…DERP!!-that's done almost everytime funds start blowing up…they should go talk to Gary at the SEC nao..he did such a bang-up job at the CFTC and can offer lots of creative ways to manage things.)
Cutting red tape
China plans to expand a pilot program on a registration-based system for initial public offerings to all of its trading venues. First-time share sales on the main Shanghai and Shenzhen stock exchanges are currently vetted by the regulator, a lengthy review period which makes the equity market inaccessible for many smaller companies. The system was adopted by the Star board in 2019 and implemented on the ChiNext in 2020. A plan to merge Shenzhen's main board with its smaller enterprise board, announced in February, was seen as a step toward a broader rollout.
Market impact: A more accessible and efficient primary market, where the valuation is determined by investors. The regulator imposes an unofficial cap of 23 times earnings for IPOs, which limits fundraising. As of late January, there were more than 800 companies lining up to list in China, according to data compiled by Bloomberg. After filing an application, it takes on average 522 days to debut, Huaan Securities Co. estimated in a recent note. The ChiNext's registration-based system cut that to 107 days, according to the brokerage.
No hedge no edge
Authorities clamped down on derivatives after they were blamed for exacerbating the stock crash in 2015. Yi Huiman, chairman of the China Securities Regulatory Commission, has said that developing the derivatives market "steadily" is a top priority. developing the derivatives market….top priority
Market impact: Looser restrictions on index futures would help attract overseas inflows. Futures are one of the easiest, cheapest and most-liquid ways to hedge positions(and easiest to manipulate), making them essential risk-management tools for professional funds. But the products are also targeted by speculators, which can trigger margin calls if the cash market moves against a big leveraged bet.
Buy now, sell now
Unlike the U.S. and Hong Kong, China's stock market carries a T+1 trading mechanism, meaning investors can only sell their stocks the day after purchase. Xiao Gang, former chairman of the securities regulator, said in August that China could pick blue-chip stocks for same-day trading trials, after the Shanghai Stock Exchange said it's studying a partial "T+0" trading mechanism for its Star board. Still, the CSRC indicated last month that implementation is a long way off, saying market participants are still cautious.
Market impact: A T+0 trading mechanism is favored by speculators and high frequency traders because they can profit from intraday fluctuations.
pretty sure theyon't check any of that for the big bois so that won't change much-just on the retail level.
https://www.bnnbloomberg.ca/china-s-plan-to-trim-debt-makes-stock-market-reforms-more-urgent-1.1576529
8chan/8kun QRB Posts (1)
#134511 at 2022-05-03 04:39:57 (UTC+1)
QRB General #911: When Yo ER Is Infinite X 3, Smile n Dig It, Rigged Red Edition
China Holds Secret Bank Meetings To Plan For Protecting Assets From US Sanctions
China is taking serious steps to prepare itself for potential future US sanctions such as have been imposed against Russia's banking sector, with regulators recently convening an emergency meeting of domestic and foreign banks to examine how to best protect the country's overseas assets.
Over the weekend the FT identified that the internal conference was held on April 22 and included top officials from China's central bank and finance ministry. It's also said that representatives were sent from every domestic and Chinese overseas bank, and additionally some China-tied international institutions, notably among them HSBC. The somewhat secretive conference was held as Russia is charging Washington with stealing $300 billion of its assets held overseas."Western nations have actually stolen more than 300 billion US dollars from Russia when they seized the money meant to pay for Russian gas, Russian Foreign Minister Sergey Lavrov said in an interview with Al Arabiya TV on Friday," wrote state-run TASS base don the top diplomat's words.
Lavrov had with the last days again described US-led actions of the West "shameless robbery" and described, "London, Washington, Brussels are looking at seizing the money they have frozen to transfer it to someone else."
Indeed there's been open talk of using seized Russian assets, including frozen Russian Central Bank reserves, to rebuild Ukraine in the future and to fund Ukrainian institutions. European countries have led to way in the seizures with Washington's goading.
It appears China is taking note and not sitting idly by for its own similar crisis, especially as rhetoric ratchets concerning Taiwan and potential parallels with Ukraine. The emergency meeting also came after starting in March the Biden administration began expressly warning Beijing not to serve as enabler to Russia's military machine by supplying it, or also assisting in sanctions evasion. Biden had in a March 18 call conveyed this warning to President Xi Jinping directly.
1/6 Lavrov discusses rationale behind ruble payments by Europeans for Russian gas:
"A simple thing has happened that those who have been criticising and condemning our actions don't want to talk about: our money, more than $300 billion, has been stolen.- M. K. Bhadrakumar (@BhadraPunchline) May 2, 2022
Citing official sources out of China, FT details the following: "...the meeting began with remarks from a senior finance ministry official who said Xi's administration had been put on alert by the ability of the US and its allies to freeze the Russian central bank's dollar assets." "The officials and attendees did not mention specific scenarios but one possible trigger for such sanctions is thought to be a Chinese invasion of Taiwan, which China claims as its territory and has threatened to invade if Taipei refuses to submit to its control indefinitely," the report continued. A person briefed on some specifics discussed at the meeting told FT: "If China attacks Taiwan, decoupling of the Chinese and western economies will be far more severe than [decoupling with] Russia because China's economic footprint touches every part of the world." And more from the report: Senior regulators including Yi Huiman, chairman of the China Securities Regulatory Commission, and Xiao Gang, who headed the CSRC from 2013 to 2016, asked bankers in attendance what could be done to protect the nation's overseas assets, especially its $3.2tn in foreign reserves. China's vast dollar-denominated holdings range from more than $1tn US Treasury bonds to New York office buildings. State-owned Dajia Insurance Group, for example, owns the Waldorf Astoria New York. At the same time, it seems Taiwan is on the opposite side of taking notes from the Ukraine playbooks and domino effect of international reaction. "We try to see what we can learn from Ukraine in defending ourselves," Taiwan's Foreign Minister Joseph Wu told CNN's Fareed Zakarai in a Sunday interview.
https://www.zerohedge.com/markets/china-held-secretive-meeting-bank-executives-plan-protecting-assets-us-sanctions
"Secret Meetings....'''