Thursday, October 31, 2019

Another Chinese Bank Is On The Verge Of Collapse After A Sudden Bank Run

Customers form lines in front of Yichuan bank; photo: WSJ

Zero Hedge: Chinese Bank On Verge Of Collapse After Sudden Bank Run

First it was Baoshang Bank , then it was Bank of Jinzhou, then, two months ago, China's Heng Feng Bank with 1.4 trillion yuan in assets, quietly failed and was just as quietly nationalized. Today, a fourth prominent Chinese bank was on the verge of collapse under the weight of its bad loans, only this time the failure was far less quiet, as depositors of the rural lender swarmed the bank's retail outlets, demanding their money in an angry demonstration of what Beijing is terrified of the most: a bank run.

Read more ....

WNU Editor: I saw bank runs in Russia in the early 1990s. It is a terrifying experience.

Update: Major Chinese companies are also going bust .... Credit Crisis Unfolds In China As Steelmaker Default Sparks Contagion Fears (Zero Hedge).

4 comments:

Anonymous said...

As I mentioned on this blog several times - this is nothing yet. Just wait when the housing bubble pops early next year. The Chinese can only fend it off by either printing more money and getting close to the cliff of hyperinflation (which will render the Chinese century into a nightmare for them) or they give in and deal with Trump. They cannot wait much longer. My guess is - as always - they will say they will deal in good faith and promise the heavens to get back to normal trade relations. Trump knows this off course and it could help the US economy so so much to make a good deal, but. .ironically, democrats are hurting his chances to negotiate this multi trillion dollar deal and its outcome could determine if your children live with a lot of debt or only 75%of that debt. We are taking trillions and trillions over the years. The democrats single handedly might destroy the near/midterm economic future of the US,ruin 1-2 generations who will have to - thanks to the likes of Pelosi and Schiff - again have to live with their parents into their 30s. That's the future if this trade opportunity is not taken advantage of. And the US will lose military supremacy too by 2050.


BUT fear not. The fix is in. Trump will win 2020.mark my words. I was right 100% on all things so far (and the parrot was wrong on 100%)..

Roger Smith said...


Japan was the economy to emulate in the 80's. They had bought many golf courses in California at one point. They sold them off long ago and the Japanese economy readjusted.

There was a great deal of worry at the time. China too will have to mend it's economic ways if it wants to continue trading with others. No more one way streets.


Mike Feldhake said...

I agree with most of what your saying, but the wiser man will say you can't be 100% right all the time. Poster beware :)

Bob Huntley said...

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