A group linked to the Chinese government has warned of a looming “financial panic”


Sentiment on the Chinese economy has taken a turn for the worse.

Chinese economic data has started to falter after a period of near-relentless consistency over the past couple of years. Recent months have seen Chinese stocks and the Chinese yuan tumbling.

The benchmark Shanghai Composite Index has fallen over 20% since late January, leaving it in a technical bear market. It currently sits at the lowest level since May 2016, having been at a two-year high earlier in the year.

The Chinese yuan has also been hammered, losing over 6% since late March, leaving it at the weakest level since late last year.

While not yet to the same extremes seen in late 2015 and early 2016, fears about the Chinese economy are growing, at a time when trade tensions between China and the US are intensifying.

This has made a lot of people nervous, including those at China’s National Institution for Finance and Development (NIFD), a Chinese government-backed think tank.

In a study leaked on the internet earlier this week, and which has subsequently been removed, the group warned that “financial panic” is likely to escalate in the period ahead.

“We think China is currently very likely to see a financial panic,” the NIFD study said.

“Preventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.”

The group warned of bond defaults and liquidity shortages, and suggested the recent rout in Chinese financial markets posed dangers to the economy during a period of heightened trade tensions and rising US interest rates.

It also singled out the use of leverage by Chinese stock investors, warning that at around five trillion yuan, it has again reached the levels seen in 2015 just before the Chinese stock market plunged in 2015.

“We failed to clean up the leveraged funds after the 2015 market rout; they have staged a comeback in a new guise,” the NIFD said.

The group said that China should stand ready to roll out a mix of fiscal and financial-sector measures in the event of a systemic crisis.

It added that authorities should be ready to step in with full financial support if a major default roils markets, rather than taking “piecemeal steps”.

“China’s State Council should be ready to implement any market support measures in coordination with the central bank and other regulators, key government ministries, and the police,” it said.

Yes, police.

Similar steps were also seen during China’s stock market plunge of 2015, and progressively became more aggressive as financial markets continued to slide.

While the web link has been removed, its contents were confirmed to Bloomberg by a NIFD official, according to the South China Morning Post.


eyes up..

“We failed to clean up the leveraged funds after the 2015 market rout; they have staged a comeback in a new guise,” the NIFD said.”

we have thought for a long time that china would be the spark..this gives us few more clues as to why..


~ by seeker401 on July 4, 2018.

15 Responses to “A group linked to the Chinese government has warned of a looming “financial panic””

  1. we hear this bfore a while back any of you Guys have more info on it
    “ITEM 18: There’s a coverup involving California R ep. M axine W aters and the Blue Moon Bank in Thailand.”
    we thx in advance 🙂

  2. Found this scheme her and Barney Frank covered up but the Blue Moon story seems to come again from Fulford…..not too reliable at all.


  3. http://www.dailymail.co.uk/news/article-5916745/Chinas-HNA-Group-says-chairman-died-France.html

  4. “Some 30 Chinese government officials broke into a Christian church in Guangzhou, Guangdong, and heavily fined the house of worship for illegally gathering, the pastor who was arrested during his sermon said.

    “20-30 government officials broke in (to Bible Reformed Church) while I was delivering my sermon and asked us to stop gathering. They also ordered us to submit our ID cards,” Pastor Huang Xiaoning told ChinaAid, describing the June 10 incident.

    “Huang and three other Christians were taken by police and interrogated for hours, after which the church was fined the equivalent of $7,685.45 USD for holding religious activities.”

    • back to the bad old days?

      • I do not know. There are similarities between the 16th and 17th century Church of England and the Three-Self Church, except during the English Civil War when the monarchy lost power for some years. The Chinese government program against all non-Three Self Churches has been in continuance and has not changed. We do not hear about all the persecutions and the hiding going on. Sometimes I hear about some things by word of mouth through churches here who are in communication with Christians in China. The information coming out of China is far and few between. China has a lock down still on any communications and contact with non-Chinese people. The loop hole in their oppression has been to use education. A Chinese person gets a Visa to attend a U.S. or other foreign university and while they get a degree they attend a church in the U.S. mature in true knowledge, righteousness, and holiness so when they go back to China they are a strong mature Christian able to help be leaders in their church. Chinese churches lack leaders and is the main prayer they are always asking others to pray for. Leaders who know the Bible and are able to discern between good and evil and thus able to shepherd their flock and help grow them in the faith of Jesus Christ.

    • we hear tday that X-tianity is growing fast inChina by 2020 be near majority

      • Pray for good shepherding leadership to keep the wolves out. Lots of Chinese Christians, but not a lot of discernment. I heard of a discipline case in which a man and his family tried to take over churches and lead them in a Popish manner (do whatever he and his family said not what is in Scripture). He was eventually kicked out of the church, but it was difficult and some people left with him. The overwhelming majority of the people did not go with him, but cults like that are avoided when there is a strong Biblical leadership of elders who are able to oversee the church and notice early on when there are people in the congregation who are only seeking to glorify their own self.

        A good organization that has been helping a lot is called “Reformation Translation Fellowship”. They have been around for decades and are trustworthy.

  5. https://www.bloomberg.com/news/articles/2018-07-04/deutsche-bank-s-asia-pacific-equities-head-james-boyle-resigns

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