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Timm

Is China Planning To Tighten Capital Rules For Banks?

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http://www.bloomberg.com/apps/news?pid=206...id=aO4YE2uqvJKY

China plans to tighten capital requirements for banks, threatening to curb the record lending that’s fueled a 60 percent rally in the nation’s stock market, three people familiar with the matter said. The China Banking Regulatory Commission sent draft rule changes to banks on Aug. 19 requiring them to deduct all existing holdings of subordinated and hybrid debt sold by other lenders from supplementary capital, said the people, who have seen the document. Banks have until Aug. 25 to give feedback, said the people, declining to be named as the matter is private.

As a result, banks may need to rein in lending or sell shares to lift capital adequacy ratios to the 12 percent minimum. Chinese stocks briefly entered a so-called bear market this week on concern the government would stymie new loans that exceeded $1 trillion in the first half. A news department official at the regulator declined to comment by phone and didn’t immediately respond to a faxed inquiry.

So is this the new socialist agenda? Print and squeeze?

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I think they are getting concerned if they don't act there will be a huge bust.

China is fascinating because they are trying to have a free market in a police state.

Yes, it could be described as a police state. However, I have been on visits to China four times in the last 12 months and I can tell you that there are no adverse effects for 99.9% of the population because of it. On the contrary, there are many positive effects. To give you an example, earlier this week I was making my way home from a night out with some friends in Beijing. We decided to walk part of the way, having to go underneath motorway bypasses and other dark and lonely places. We passed juveniles lurking around but not one was in the least bit threatening but were just having a good time talking amongst themselves. I can't imagine feeling safe doing that in any major UK city in those sorts of places and I would immediately be concerned if I came across any gangs lurking around there.

Grannies and young kids can walk freely in almost any place that I have been to in Beijing at any time of the day or night. The authorities don't tolerate any nonsense and everybody knows it. Now there is a price to pay for this level of safety, that is you can't demonstrate in public without first obtaining a licence from the government (which they probably won't give you of course). However, who here can honestly say that, given a reasonably well managed economy with chances for everybody to succeed plus social stability, you would want to go on a political protest? I know that if I could live in a society where my family could feel safe and that through hard work, I could acquire good benefits for them, I wouldn't give two yuan for the right to political demonstration just for the sake of the ability to do so

Best,

L

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tbh, china does seem to be doing a very good job of managing their economy and investing for the furture. It's a shame that our country has been left fully shafted!

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Yes, it could be described as a police state. However, I have been on visits to China four times in the last 12 months and I can tell you that there are no adverse effects for 99.9% of the population because of it. On the contrary, there are many positive effects. To give you an example, earlier this week I was making my way home from a night out with some friends in Beijing. We decided to walk part of the way, having to go underneath motorway bypasses and other dark and lonely places. We passed juveniles lurking around but not one was in the least bit threatening but were just having a good time talking amongst themselves. I can't imagine feeling safe doing that in any major UK city in those sorts of places and I would immediately be concerned if I came across any gangs lurking around there.

Grannies and young kids can walk freely in almost any place that I have been to in Beijing at any time of the day or night. The authorities don't tolerate any nonsense and everybody knows it. Now there is a price to pay for this level of safety, that is you can't demonstrate in public without first obtaining a licence from the government (which they probably won't give you of course). However, who here can honestly say that, given a reasonably well managed economy with chances for everybody to succeed plus social stability, you would want to go on a political protest? I know that if I could live in a society where my family could feel safe and that through hard work, I could acquire good benefits for them, I wouldn't give two yuan for the right to political demonstration just for the sake of the ability to do so

Best,

L

No Chinese teenager in his right mind is going to mug a white foreigner in the middle of Beijing...

The problem is with 'visits'. If you lived there and got out Beijing you would see plenty of crime and plenty of corruption. The 'price you pay' for the wonderful utopia that is China is far, far higher than simply needing to obtain a license before going on a protest.

Try this for size,

http://news.bbc.co.uk/1/hi/world/asia-pacific/7567703.stm

At the Beijing Olympics China had promised to sort out it's human rights and allow protests in designated protest zones.

They had 77 applications.

74 were 'withdrawn'

2 were suspended for incomplete procedures

1 was vetoed for not being legal under Chinese law governing demonstrations

The police have the power to order upto 4 years of 're-education through labour' without a trial or bringing any formal charges against you.

Guess what two old biddies got when they applied to protest several times?

http://news.bbc.co.uk/1/hi/world/asia-pacific/7572033.stm

The Chinese government currently holds about 300,000 people in re-education camps, where they are not supposed to work more than 12 hours per day and six days per week, for no pay. Remember, the word of any policeman is all that sits between you and slavery for the state. Non of this going to trial rubbish.

Still looking so good?

We could try the capital punishment rates?

or maybe the track record of torturing suspects?

or how about Tibet?

Odd thing about Tibet. The population today numbers about the same as it was 60 years ago, but today 40%-50% of the population is Chinese whereas 60 years ago the population was 100% ethnic Tibetans.

Strange thing that while the population of the rest of the world has exploded over the last 60 years, the ethnic Tibetan population halved.

Care to guess how that could have happened?

A clue, they didn't meditate themselves to a higher plane of existence...

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