China Remains Shaky After Challenging Summer t.co/lE9JkkbzQE
— Win Smart, CFA (@WinfieldSmart) October 14, 2023
— Win Smart, CFA (@WinfieldSmart) October 14, 2023
This week, new broke that China is planning a stimulus package to support its economy.
Last month, China lowered interest rates on nearly $6 trillion worth of mortgages.
Something is clearly happening in China.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 14, 2023
Evergrande bankruptcy fears spark a bank run in China
Bank of Cangzhou and PBOC authorities say all is financially well and that Evergrande’s outstanding loans won’t affect bank’s ability to pay depositors
One of heavily indebted Chinese property developer Evergrande’s local lenders displayed this week a “cash wall” of renminbi notes at its office after depositors queued up to withdraw their deposits in what could be the front edge of a bank run crisis in China.
Hundreds of people have queued up at the Bank of Cangzhou’s head office in Hebei province to get their deposits out of the bank since October 7, according to photos and videos circulated on social media.
The mini-run came after netizens circulated a post that claimed dozens of Chinese banks would need to write off their loans if Evergrande went bankrupt. According to the social media post, Evergrande owes Cangzhou Bank about 3.4 billion yuan (US$466 million). Asia Times could not independently confirm the figure in time for publication.
h/t welp007