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The SHADOW BANKING Market has expanded rapidly in China over the past 15 years and total exposure now stands at $3 TRILLION. Shadow banks are UNREGULATED and have been using investors’ funds to provide debt to Chinese companies as well as making direct investments into property projects and property companies. Zhongzhi is one of the largest Shadow Banks and has now filed for BANKRUPTCY after declaring a $64 Billion Black Hole in its Balance Sheet. Zhongzhi is one of the largest Bankruptcies that China has ever seen and in this video I look at the reasons why the company is insolvent, discuss the risks now facing the whole of the Shadow Banking market and look at the potential impact on the Chinese Economy.
For specific details please check out the CHAPTER list below.
Thanks for watching and please LIKE and SUBSCRIBE.
Chapters:
0:00 Intro
4:01 SHADOW BANKING
8:23 CHINESE REAL ESTATE
12:17 ZHONGZHI BANKRUPTCY
17:23 SUMMARY & CONCLUSION
#china
#zhongzhi
#globalrecession
#inflation
#technology
#wheat
#interestrates
#india
#Belt&Road
#globalrecession
#globalfinancialcrisis
#russia
#Evergrande
#China
#Recession
#Zhenro
#Bonds
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Everyone is making the same mistakes; the Chinese were just last in the queue.
Neoclassical economics is the economics of the Roaring Twenties, the Wall Street Crash and Great Depression.
Policymakers sooner or later use the economic growth model of the Roaring Twenties, oblivious to where this is leading.
It was China’s turn after 2008.
Chinese exports to the West fell off a cliff after 2008, and they turned to their neoclassical economists to revive the economy.
They started pumping bank credit into real estate.
They were oblivious to the claims on future spending power piling up in the banking system.
At 25.30 mins you can see the super imposed private debt-to-GDP ratios.
https://www.youtube.com/watch?v=vAStZJCKmbU&list=PLmtuEaMvhDZZQLxg24CAiFgZYldtoCR-R&index=6
The mechanics of the banking system are a mystery to global policymakers.
They never realise the money to push up asset prices is coming out of the banking system, where the claims on future spending power pile up, out of sight and out of mind.
The economic illusion of neoclassical economics.
Money is borrowed from banks to fund the purchase of assets and push up asset prices.
The new money created by borrowing from banks drives the economy.
Banks create money and debt at the same time, but policymakers are oblivious to the debt piling up in the banking system
The mechanics of the banking system are a mystery, and as far as global policymakers are concerned it must be rising asset prices that are so good for the economy.
Everything balances on the way up; you’ve got the assets on one side of bank balance sheets and the loans on the other.
Asset prices fall, and holes start to open up in the banking system.
A big fall in asset prices will leave a lot of insolvent banks.
All about the same, pot's calling kettle black. 😂😂😂
The bummer of these Ponzi schemes is that it will create international financial shocks.
Good Grief you don't half waffle on! Next time, do it in half the time and cut out the MANY REPATICIOUS WAFFLING.
Why is everyone given shit about china having 3 trn in debt when American has 34 trillion in debt. 😮
What is shadow banking?
You have too much clickbait.
*Jong-gee
Funny . The most indebted country is the US
Wow Chinas shadow banks have bad debts that are twice the size of all of Canadas federal debt.
This Brit with his fake news & lies as usual.
Enough homes for 3 billion people in a country of 1.4 billion people (and possibly only 1 billion people as the CCP lies). What could possibly go wrong?
Unregulated 'shadow banks'. Does sound a tad dodgy. And is.
I have been hearing it since last year about bankruptcy or china economy goes down…I will come back in 3, 6, 9 months time and see if you are right.
That is the Residue's of FAKE – Propaganda that China's Economy will be the No.1 and American dollar will collapse..Under-estimating the Most Powerful & richest American-Jew's Multi Trillionaire investors & Capitalist like: Rochild-Family, Edan Hoper among other's. Not to mention Elon Musk of SpaceX & Tesla, Amazon Bizo, Zuckerberg, Microsoft
Bill Gates, Warren Buffet.
Thank you for your analysis!
Isn't this just pure projection Joe Blogs?
Anything that goes against affordable housing crumbling is music to my ears. 😊
America are you listening? This is what will happen under greedy TrumPutinXi if elected again because the greedy feed on the needy.
Writing cheques with your eyes closed causes bankruptcy! … who knew?
I wonder if this is a market the Chinese government actually wants to dissolve and not take on its liabilities. The reason being that the citizens in China are now becoming wealthier and less reliant on government. Wiping away all that wealth would force the cheap labour back into factories again. And have more dependent obedient citizens once again.
$3 trillion. USA $34 trillion. Yeah, Chyna is in trouble 😂😂😂😂😂
U.S. has 34 Trillion debt, so why would a country go down like China because of their small debt?
QUESTION WHY ARE YOU LET THEM STOOGE DO THIS EVERY LAND's . ARE YOU NUT's CALLING YOUR SELF LEADERS AND WATCH OTHERS GET CLIPPED AS THEY SAY HIT ON ANY NATO HIT ON ALL THE NATO STOOGE's ONLY YOU WATCH OTHERS IN UN NATO LEADERS GET CLIPPED
WITH MY MAIL WORLD SALES SHIP FROM YOUR LAND THEN CONTROL THE PRICE
We knew this is going to happen 25 years ago.
imperialist china cant pay its debts.
it isnt how much you owe, its whether or not you can pay it back.
china is built on STOLEN western technology and cant innovate, only steal.
It’s very interesting to know how fast the western medias would love to highlight the so called crisis or national debt in China from 3 or 4 trillion $ as some colossal debt that would bring an end to China’s economy and Beijing’s rule. Well, that type of analysis or doomsday forecast, would be pleasing to hear by all the China haters who have been wishing for such welcoming news but oops, the rain did come on their parade, ruining all their hopes for such news to happen. But before , we could go on with these hallucinations, pls. take a good look at the U.S. national debt of $34 trillion & climbing steadily.! Alas, no western medias nor any U.S. main stream news publications , want to talk about it & pretending that this US national debt doesn’t really exist in reality. That’s a mystery & I have often wondered why.? Perhaps, that sort of news isn’t great for a headliner.?
China is not US. Shows you don’t pretend to know or understand China
fake news: xi is still healthy!!!
People or 'experts' who keep harping on how 'low' / 'slow' is the economic growth of China in recent years are either dumb or deliberately lying (or both).
The reason is simple – the absolute SIZE of the Chinese economy today is multiple TIMES than it was 10 or 20 years ago.
Hence, even an 'average' of 5% economic growth today would roughly be the same increase (in dollars amount) of a '10%' in the past.
Just simple arithmetic.
In 1984, China grew by 15.2%, and averaged over +10% annually through 2005, so 2023 growth dropping to a mere 5% is a big drop. Thing is, when China grew +15.2% in 1984, their economy was only $260 Billion USD (nominal), so they grew by +$40 Billion. In 2023, China's economy is $18 Trillion USD (nominal), so +5% growth adds +$900 Billion, 22.5 times greater than their 1984 growth and roughly 3.5 times the ENTIRE 1984 Chinese economy.
In contrast, the USA will be lucky to add +$20 Billion to their economy, and it'll mostly be FIRE (Finance, Insurance & Real Estate) growth, rather than "real" industrial production and trade in goods. The UK is going into recession, Germany is in "technical" recession, and Japan has been ZERO growth for decades. Meanwhile, sanctioned Russia is expected to grow by +3%, faster than the USA.When people like Adrian Zeihan and Gordon Chang keeps being the nvited to talk and explain why the PRC is "collapsing", we, the informed people, can only wet our pants of laughing.
WESTERN PROPOGANDA.
ANYONE BELIEVING THESE WESTERN MINIONS IS FOR SURE STOOOPID.
You could change all the seats on the Titanic ship that the outcome will be just the same and deflation and the word maintenance will put China into the biggest spin this year. Let’s let’s pray for the poor Chinese people. Regards Alan from down under
Three trillion debt ?Us have almost 34 trillions of debt who is advance in debt ratio
🏳️🌈merica propaganda yours debt 10 times more
China 🇨🇳 dragon collapse debt in trillion
China going towards bankruptcy 3 trillions not correct figures not less than 10 trillions China blindly going challenging India now drowning in pet hole
USA Debt of 33 Trilions not Collapse Why ? China if it is right 3.3 Trilions will collapse ! Means USA May Be collapse 10 X !
An economy built of smoke and mirrors will eventually fold , and china has perfected this system
Shadow government usefull while shadow banking is harmful for any country,China show their dirty skills,