Chinese Stocks Stage Hilarious Comeback After “Absolutely Groundless” Moody’s Downgrade

It’s all fun and games until someone gets downgraded. So last night, Moody’s handed China its first downgrade since 1989, a move that reflected growing incredulity with the notion that Beijing will somehow be able to simultaneously deleverage and maintain the current pace of economic growth. China, of course, wasn’t happy. The Ministry of Finance called…

“The Shadowiest Corner Of Shadow Banking” – A Sunday Trip To Chinatown

China’s labyrinthine shadow banking complex has been a source of concern for years. It’s always been readily apparent that credit expansion via the country’s network of impossibly convoluted back channels has served to inflate bubbles in all manner of assets by encouraging rampant speculation. It’s also painfully obvious that healthy deleveraging and the purging of…

These 4 Charts Show China Squeezing Its Shadow Banks

There’s still a lot of confusion out there surrounding exactly what’s going on in China. And understandably so. After all, the country has embedded so much risk in its financial system via what SocGen correctly describes as a “mind-boggling” array of shadow credit channels that untangling who’s responsible for what and where all that credit ends…