The Lemon Fool

Ugly scenes from China as bank freezes deposits & won’t let customers withdraw their savings:

https://www.google.com/amp/s/amp.thegua ... k-accounts

Kind of wonder if this is a one off, or are there systematic failings in the Chinese financial system.

Does any one know?

Lots of other data is indicative of a major slow down, rather than inflation it begins to look more & more like a serious recession. This could stop the Fed rate raises & rally the equity markets at least in the short term.

Regards,


Regards,

Working link to Guardian article -

https://www.theguardian.com/world/2022/jul/11/china-violent-clashes-at-protest-over-frozen-rural-bank-accounts

Cheers,

Itsallaguess

odysseus2000 wrote:Ugly scenes from China as bank freezes deposits & won’t let customers withdraw their savings:

https://www.google.com/amp/s/amp.thegua ... k-accounts

Kind of wonder if this is a one off, or are there systematic failings in the Chinese financial system.

Does any one know?

Lots of other data is indicative of a major slow down, rather than inflation it begins to look more & more like a serious recession. This could stop the Fed rate raises & rally the equity markets at least in the short term.

Some Chinese regional banks have had serious problems since last April, preventing customers from making withdrawals. The international media have largely ignored this, probably because there haven't been shutdowns at the big banks and it looks like fraud at these banks rather than a systemic problem with the Chinese banking system. From June 12th:

"Multiple sources contacted by Asia Markets, have confirmed deposits at the following six banks have been frozen since mid-April.

Yuzhou Xinminsheng Village Bank (located in Xuchang City, Henan Province)
Zhecheng Huanghuai Bank (City of Shangqui, Henan Province)
Shangcai Huimin Rural Bank (Zhumadian City, Henan Province)
New Oriental Village Bank (City of Kaifeng, Henan Province)
Huaihe River Village Bank (Bengbu City, Anhui Province)
Yixian County Village Bank (Huangshan City, Anhui Province)"

https://www.asiamarkets.com/chinese-banks-run/

"The scope of the bank scandals where bank officials embezzle and steal funds from depositors is alarming, and what is exposed could only be the tip of the iceberg," said Frank Xie, a professor at University of South Carolina Aiken who studies Chinese business and the economy. "

https://edition.cnn.com/2022/06/23/economy/china-bank-runs-protests-intl-mic-hnk/index.html

Chinese growth slows to only just positive:

https://www.washingtonpost.com/world/20 ... -lockdown/

Much of this seems to be due to the government policy of trying to eradicate Covid, but whether that can be done in a world where many other nations have given up trying is far from clear to me. It all reminds me of the policies to irradiate foot & mouth disease but as wholesale culling of the population isn't an option it seems a strange policy, as thought the Chines politicians are listening to their experts and following their ideas as we did in the UK before we started to ignore the medics and this has not led to the severe troubles forecast.

Regards,