2 months ago
🚨 The Chinese banking sector has just imploded!
40 banks disappeared in ONE WEEK
China faces a silent banking crisis that will shake the global economy. 👇
Small Chinese banks are falling one after the other.
We are talking about 55,000 billion yuan of assets at risk (13% of the banking system)!
3,800 rural institutions are in difficulty.
The problem is COLOSSAL.
40% non-performing loans in certain banks, massive exposure to the real estate crisis and large-scale fraud freezing Chinese withdrawals.
China's social stability is at stake. Beijing is panicking.
Their solution?
Make the problem disappear!
In Liaoning province alone, 36 banks have merged into one.
But merging troubled banks only creates bigger troubled banks!
The authorities are overwhelmed:
➡️ Delays in financial stability legislation
➡️ Insufficient recapitalization via special bonds
➡️ Lack of mechanisms to let banks fail
Incompetence reigns in Chinese economic policy and the consequences could be devastating...
We obviously fear a slowdown in economic growth but also and above all a risk of contagion to the global economy.
We may be witnessing the start of a major financial crisis.
We understand better why investors have been withdrawing their money from China for two years...
https://t.co/RLXGBneYTm
40 banks disappeared in ONE WEEK
China faces a silent banking crisis that will shake the global economy. 👇
Small Chinese banks are falling one after the other.
We are talking about 55,000 billion yuan of assets at risk (13% of the banking system)!
3,800 rural institutions are in difficulty.
The problem is COLOSSAL.
40% non-performing loans in certain banks, massive exposure to the real estate crisis and large-scale fraud freezing Chinese withdrawals.
China's social stability is at stake. Beijing is panicking.
Their solution?
Make the problem disappear!
In Liaoning province alone, 36 banks have merged into one.
But merging troubled banks only creates bigger troubled banks!
The authorities are overwhelmed:
➡️ Delays in financial stability legislation
➡️ Insufficient recapitalization via special bonds
➡️ Lack of mechanisms to let banks fail
Incompetence reigns in Chinese economic policy and the consequences could be devastating...
We obviously fear a slowdown in economic growth but also and above all a risk of contagion to the global economy.
We may be witnessing the start of a major financial crisis.
We understand better why investors have been withdrawing their money from China for two years...
https://t.co/RLXGBneYTm
Why Chinese banks are now vanishing
The state is struggling to deal with troubled institutions | Finance & economics
https://t.co/RLXGBneYTm
This is catastrophic.. Imagine trying to withdraw money and they just tell u «sorry»😂
Or they just print u ur money like nothing ofc👀
Or they just print u ur money like nothing ofc👀
2 months ago
In response Astro peng to his Publication
