Taper This! 2014 Rhymes: Evergrande Goes Down, Real Estate Price Controls, Cash Moving into Stocks

Reuters: China Evergrande bonds suspended as prices slump

Bonds issued by heavily indebted developer China Evergrande Group plunged on Monday on growing investor worries over the company's ability to pay its debts, prompting China's stock exchanges to halt trading.

The Shanghai Stock Exchange said in a statement that it had temporarily suspended trading in China Evergrande Group's 6.98% July 2022 corporate bond following "abnormal fluctuations." The exchange had also suspended trading in the bond on Friday.

Sanya implements price controls on real estate: no price hikes for 1 year. iFeng: 楼市大降温！三亚出手了：商品房备案价格1年内不得上调 影响有多大？

It is reported that the "Notice" proposes that for projects that have been filed before September 1, 2021, the prices of unsigned properties must be re-filed, and the overall average filed price shall not exceed the recent online price of the project. For commercial housing projects that have been approved for price filing, in principle, the filing price cannot be raised within one year.

Experts interviewed by China Securities Journalists believe that "hands-on" sales price filing is an important means of controlling housing prices. The price increase channels of commercial housing are basically restricted through controlling price filing, which will help reduce false fires in the property market and return the market to stability.

East Money: A股罕见万亿成交背后：炒楼资金悄然“转场”股市

On September 1, the Securities Times reported that the client margin of a leading brokerage firm suddenly increased by nearly 5%. In the past four trading days, the increase was nearly 10%, which aroused widespread concern in the market. (For details, please poke: The margin of top brokerage clients has soared, and the super market is coming? 1.7 trillion funds are surging, and the popular track has plummeted. ) Behind the soaring margin is the sudden increase in hot money in the market. According to the analysis It is believed that there are three sources of hot money, namely the primary market and the bank.Financial management , and the most important source-the property market. 　　

Why do property market funds flow into the stock market? What is the scale? How sustainable...With these questions, we visited. 　　

"A lot of millions of dollars around me have entered the market" 　　

"The property market capital flows into the stock market situation does exist, around me a lot of one million of the funds are coming onto." Laolv is a veteran real estate investors, too many sets of real estate operations in Shenzhen for 20 years, currently quite good assets He told reporters that many of his friends who originally invested in real estate have entered the stock market this year.

Back in April 2014, with the taper underway for 4 months: Rumored Mass Death of Companies in Xiaoshan District of Hangzhou If Banks Collect on Debts; Government Tells Banks to Sit Tight or Leave. By October, Liaoning's economy was going down the tubes: Liaoning Sounds Warning on Chinese Economy. Coincidentally, the Chinese government was engineering a stock market bubble that would blow up in May 2015. In August 2015, the central bank gave up defending the yuan and let it depreciate.

History doesn't repeat, but it does rhyme. The wheels are wobbling on China's economy and the Federal Reserve hasn't even announced its taper yet, let alone started it. China has all but banned reporting bad news about the economy.

Embrace the fog of information war. Ursus Major rises.