Following
Marc Faber's reality check on China recently,
Hayman Capital's
Kyle Bass took a swing tonight noting that "China's 7% GDP
growth is a farce,"
and adding that, just
as we detailed previously, China's credit cycle has
begun and non-performing loans will rise rapidlyleading to an
emerging Asia banking crisis ahead. Japanese
markets continue to entertain with
"someone" insta-ramping NKY Futs 100 points at the
openonly to give it all back as USDJPY slides back towards
120.00 (and
10Y JGB yields drop below 30bps for the first time in 6
months).
Hayman Capital's Kyle Bass discusses China at Sohn San
Francisco:
*HAYMAN'S BASS SAYS CHINA 7% GDP GROWTH IS A
'FARCE'
*HAYMAN'S BASS SAYS HE'S ASSUMING CHINA CREDIT CYCLE HAS
BEGUN
*HAYMAN'S BASS: CHINA WILL FACE NPL CYCLE, CREDIT
CONTRACTING
*HAYMAN'S BASS: ASSUMES 8.5%-10% CHINA LOANS
NON-PERFORMING
*HAYMAN'S BASS SEES EMERGING ASIA BANKING CRISIS
AHEAD
Confirming our previous detailed analysis on
China's Banking System's Neutron Bomb.
China continues to drift quietly under the hammer ofthe
Polituburo ahead of The Plenum
The Chinese continue to lever up...
*SHANGHAI MARGIN DEBT BALANCE RISES TO EIGHT-WEEK
HIGH
* * *
Japanese markets are once again a farce also...
A mysterious insta-buyer lifted Nikkei futures 100 points in one
big bid at the open, but USDJPY continues to tumble as hopes of
moar from The BoJ fade...
It's been a ride..
10Y JGB yields are back under 30bps - lowest in 6 months...
The spread between Offshore an Onshore Yuan continues to widen
suggesting outflows are picking up once again.
Charts: Bloomberg