China's Bond Market Drama: Why Beijing Is Telling Institutional Investors to Stay Away

[@JamesBrown-p6e]

Very comprehensive examination of the subject.

[@dougpage2730]

Interesting as always Don, thanks!

[@FreeSpeech-z6j]

there is reason chinese are called" junk bonds"

[@seekthetruth1478]

Great job Don

[@Brutus_Maxximus]

Thanks Don, love the show

[@djparn007]

Thank you, Don. 👍

[@Jin-om5jz]

Thank you Don

[@parrotraiser6541]

2% isn't much of a yield for loans to a near bankrupt.

[@spadeespada9432]

If the government says don't buy my bonds, isn't the government saying I'm not reliable?

[@l.f.p.8305]

Very interesting.

[@tomsewell2462]

Don. One thing I don't understand about China maybe you can clarify. We always hear of workers not being paid salaries for months and months, wage arrears. But how can bosses get away with such behavior at all? As you know, here in the US if I work at McDonalds for example and the resto doesn't pay me my bi-weekly wages on the agreed payday, I quit and go to the cops or govt. They would almost immediately get in big trouble here. How can a worker pay there bills, rent, buy food, etc, with even 1 paycheck in arrears? And how can a company reduce salaries? Even more shocking is demanding bonus' be returned from a year ago. How does that work? A bonus would have been spent or invested already so how could the bosses hope to get it returned? Their system is screwy.

[@mikestewart4752]

On top or being screwy, it’s also mired in Communism.

[@syjiang]

It has to do with institutional social stratification and the fact that PRC is state without true rule OF law but rather rule BY law for the benefit of the CCP. The workers most commonly are migrants from the countryside with minimal education, no money and most importantly no social connections that can protect them. The Hu kou (resident registry system) is an institutionalized social discrimination that limit the types of services these rural workers are able to access within the cities and essentially render them into second class citizen within their own nation. The retention of such system ensures a steady supply of cheap disposable labor to undertake jobs that no urban dwellers would undertake without substantial pay. It also make it incredibly easy for local government to sweep the problem away if worker protest. In your question, you have the incorrect fundamental presumption that the purpose of government is to protect/serve the people, rather its the people that is in service of the PRC government. Protesting low-wage migrant workers are just not a relevant constituency whereas the bosses might usually be the ones frequently socialize and partying with the local party leader or chief of police, so they are the actual constituency that matters to them. Going to the cops is commonly ineffectual as they are usually too lazy to investigate and would just say this is a private matter. Going to court means they would have to have the money in the first place to hire lawyers. But then the workers may find out that the bosses dissolved the company and the courts find it more convenient to dismiss the matter on that technicality, or the workers haven't bribed the judges as much as the bosses did and receive a negative judgement. As for reducing salary or demanding return of bonus, that is pretty simple. People are pretty anxious about retaining their jobs, especially in the state sector. If you failed to return the bonuses, you may find yourself unemployed or passed over for promotion. Even worse, sometimes the state employers would gave veiled threat that you could be on the receiving end of a tax audit or corruption investigation.

[@625as-pj5mg]

Seek LABOR arbitration center.

[@sleepinglaffey3886]

Patriotism of Xinnie PorkPooh #slopaganda #misery #foreignshillbroth #tubecensor - With stimulus and measures, Chyna's debt will be at 400% to 500% (600% is a completely failed nation state) of its GDP in the next decade, according to Reuters. -Chinese 🇨🇳 property Ponzi sector, which accounts for 30% of GDP, is crashing -Tofu Exports and Western imports, accounting for 37% GDP, are down. -Foreign investment is falling over 90% compared to it's peak in 2018. -Foreign visitors are down 96% compared to the pre-pandemic level in 2019 with less than 200 americans left. -Consumer prices and pay are experiencing hyperstagdeflation while necessities are undergoing hyper flation. -Youth unemployment hits over 21% (in reality 75%+ after eliminating faked numbers), a record. -It's fast shrinking workforce is 10 years old than neighboring countries. - During the years 1990-2021, the US printed 6.5 time more money while China printed 147 times. - It has printed more money than the US and Japan combined, while it's economy is only half of them. - Current Chinese debt-to-gdp is already highest in the world, at 300%, according to Bloomberg. - This is a macroeconomic nightmare created by the party going way back in 1994 when they took the Tofu money off the international exchange. Now in 2024, the banks and the average little pink have no idea what is the ACTUAL value of anything within the country. Any stimulus from the Central state. will be meaningless and ineffectual because the Central Bank is a part of the Party. Thereby merging both fiscal Central and monetary private policies into one ongoing disaster. Local province officials were doing stimulus spending for decades in tandem of the "Economic Miracle" which will undermine any Central stimulus during an actual depression/recession or more accurately.. HYPERSTAGDEFLATIONARY NIGHTMARE. -- in the future house prices will drop to 10%, youth unemployment will be over 90%+ without streams, and middle class people over 35 will all be laid off with pays trimmed in half. How will you do in a country where real estate companies, local governments, and banks across China have crashed or fled? That is your challenge for the future (will you own a trash house with the mortgage?). Pensions will be laundered and your daily pay will be 1-2 dollars while you drink Poop Water and eat gasoline cooking oil while the Party and Porkpooh eat Tegong Special food supplies. Mengze harvard daughter: lives in US brother: australian green card daughter in law: british green card sister: canadian citizen brother in law: canadian citizen second sister: australian green card second brother in law: australian green card Arctic Catfish Shenzhen: laughs at how Leeks feed her Fei Fei Li the AI Spy and stealer-Has ties to the Party with Tsinghua University WOW SO GOOD AWESOME Organ Leeks #sloprosperity #theskydontlie

[@kevinbyrne4538]

The mistake that you make is comparing China to the USA. There is no rule of law in China, no independent judiciary. Complaining to the government about unpaid wages will avail you nothing. If you protest, you'll be arrested and sent for years to a re-education camp.

[@miketan4803]

Tbh I think the govt just wants local institutional investors not to buy bonds. Their target should be foreign investors to bring in funds from outside. Lower yields will deter such foreign investors.

[@spadeespada9432]

If the locals aren't buying it, why should foreigners buy it?

[@charleswomack2166]

Lack of being FDIC insured or some equivalent solvent institution(s) within the PRC is the only way to attract foreign investors. Except for the state of California under Gavin Newsom!

[@charleswomack2166]

​@@spadeespada9432Why would anyone buy anything( other than rare earth magnets and a few other minor exceptions) from the PRC? Rare earth magnets are like magnets on steroids. I have been buying them for years on Amazon. They are so incredibly useful. And fun to play with!

[@compulsiv577]

I think the bonds have to be meant for Chinese citizens. They supposedly have high savings rates. Wouldn’t the international community be more attracted to US bonds with a higher return and presumably more security?

[@chunmuhe4860]

Great video

[@azahariawang9155]

I worry for your safety...

[@commonsensenow9517]

You always present positive info that is grounded in facts while at the same time you give the CCP polite coverage that hopefully doesn't offend... You easily could zing, excellent self control!

[@fadzilhashim.0910]

Hi 👋 , I'm Malaysian 🇲🇾 😎 . In Kuala Lumpur, Malaysia 🇲🇾 there is a National Monument ( Tugu Negara ) at Independent Field ( Padang Merdeka ) which shows several Malay soldiers celebrating their victory killing 3 Malaya Communist Party ( MCP aka PLA ) soldiers, but China 🇨🇳 still considers Malaysia 🇲🇾 as their best friend 😏 . I hope you can make a video about this 😎 .

[@luminyam6145]

Shared that with my husband, thank you.

[@diggingtochina]

Wonderful!

[@chikidd24]

He is not an Emperor, He's a dictator, and that's it! 😂

[@MasticinaAkicta]

I expect yields to go MUCH lower. With all the bankruptcies and other economic factors.

[@kevinbyrne4538]

Even state-owned banks can't find anything in the private or state-owned economy which is worthy of investment. So even state-owned banks are parking their funds in bonds.

[@midimusicforever]

Yeah stay way from the Chinese OOFconomy!

[@charleswomack2166]

Excellent content per usual Don! It appears that you know a thing or two about economics. I fear that even if Xi were to be incapacitated, it may be too late for the economy. The human rights(western definition) will most likely not improve until the CCP is removed.

[@Zizook]

This is exactly why I bought bonds before the FED Jackson Hole. Long duration bonds can be profitable if fed cuts rates. This is probably why warren buffet has more treasuries the the FED itself 😂

[@Dan8254]

You now use the "emperor" to call Xi Jinping and that is very fitting👏

[@pneudmatic]

Hi Don. I really enjoy your videos and I subscribed a few weeks ago. Your videos have lots of thoughtful analysis and I'd like to say context but for context I'd really like to know more about you. Is your background journalism or academia, both? I've searched for more information about you online but didn't find anything. Your channel is growing and I think many of us would like to know a bit about you. Maybe people who have followed you longer can fill me in.

[@breakwhiskey2863]

China....😂😂😂😂😂😂😂

[@MattDiamond-e8g]

Excellent reporting

[@paulmaher3358]

My

[@awjames1121]

War and economics experts suggest that mighty china needs to has very good relationships with japan, koreas, taiwan Vietnam, Mongolia, hongkong and macao and Philippines and all asean plus 3nations and sco members nations and russia,, then very good relationships with all Africa Union nations and mideast nations and latin Americans nations,? So mighty china can select a very good man to be in charge of all these matters, and from there the able will chose his right man for each nations he to to in charges,,, so mighty china needs very good systems??. 👍 there all can learn from their work experience in the ten years of national services in the army,, like the ranking in army,,??..

[@kimiyounasarukun]

Engagement for the engagement god, likes for the likes throne.