CHINA Suspends Bonds

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In this video I discuss the announcement that the Bank of China has suspended Bond Purchases due to a lack of supply. Yields on Chinese Government Bonds are at an all time low due to a huge increase in demand caused by the faltering economy. This latest development shows the ongoing concerns over the Chinese Economy and represents further bad news for 2025.

For specific details please check out the CHAPTER list below.

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Chapters:
0:00 Intro
2:09 CHINESE BONDS
3:20 BOND MARKET
4:48 STOCK MARKET
6:43 YUAN
7:44 SUMMARY & CONCLUSION

#china
#chinanews
#chineseeconomy
#pension
#shanghai
#vanke
#evergrande
#countrygarden
#shimao
#zhongzhi
#globalrecession
#inflation
#technology
#wheat
#interestrates
#india
#Belt&Road
#globalrecession
#globalfinancialcrisis
#russia
#Evergrande
#China
#Recession
#Zhenro
#Bonds

[jamesa]

The title would lead one to believe that the Chinese Treasury has "suspended" making payments on bond obligations but that's not the case. It is only that their central bank is no longer buying them which would be a different scenario altogether.

[treborsirrah]

Was watching a German embassy guy talking about the Chinese economy and he said there were enough empty apartments in China to house the population of Germany, which is over 80 million people.

[christianlibertarian]

China has relied on real estate as both a driver of the economy and a store of value for the middle class. But that road has reached its end. In a normal capitalist system, some other, unknown, driver would emerge. But in command economies, the chaos which allows this emergence is prohibited. China will have a very difficult time unless it can find a new, similar driver.

[logaandm]

What the Chinese Central Bank is doing is perfectly normal and not even extreme. For example both the ECB and FED have had negative yields (i.e. you lost money on bonds) in the last decade.

The main purpose of government bonds is to regulate the banking system and manage the money supply. Bond yields are low when the Central bank wants to discourage savings and encourage spending/investment. Bond yields are high when the Central bank wants to discourage spending/investment and encourage savings. Central banks have been doing this for over 200 years.

[danawishln]

I anticipate positive growth in the markets for 2025, and I'm considering investing $220k in stocks for my retirement plan due to recent rate cuts. Could you provide guidance on executing this investment safely? Additionally, are there any crucial tips or changes I should be mindful of in the current financial landscape?

[jaym]

Chinese gov stop banks from diving into bonds to weather out the brewing financial hurricane.

[fabricedevaux]

Very informative, thank for the clear explanation of how the yield of a bond is formed.

[daviddelgado]

It goes back to the weird mortgage policy of issuing loans on non-existent property and real estate speculation. Too much capital sucked out of the economy by this, depriving other sectors of the economy of investment. Add the government's refusal of western COVID vaccines which resulted in the complete shutdown of manufacturing in several cities. Foreign companies moved production out of China and the subsequent loss of market share. Political ideology has gotten in the way of the economy.

[jimbobhirstyeshuaslave]

Dear Joe,
Thank you for the update on Chinese bonds. An interesting insight into their economy. Shalom.

[SilvesterMiles-yj]

Alright, so I’ve been hoarding cash like a squirrel—$87k sitting pretty in my emergency fund, ready to leap into the investment game. But now China’s out here suspending bonds? Seriously? I’m just trying to figure out where to start without throwing my hard-earned stash into some financial black hole. Someone toss me a lifeline!

[chrisraymond]

@Joe. No you are wrong. They are suspending a ‘Bond Buying Program’ where they were buying more than the usual amount of bonds to prop up the interest rates. That’s right prop up you see rates are TOO LOW in China as they reflect the real economy and global demand. They have stopped due to a collapse in the availability of collateral (bonds) eg. too many banks want to buy them.

[nt-k]

It's enticing to consider purchasing some stocks in this bull run. I'm contemplating investing more than $300k for retirement. While the bull run can generate short-term excitement, i also need long-term investment strategy

[LarryLaird-zq]

I'm shocked that you don't have millions of subscribers. You are a genius in

[scpatlnow]

China generally likes to keep their currency weak since it helps their export market, but it's hard to tell what is really happening in China since they are not always honest about what is going on

[Romaroee]

*I Hit $12, 590 k today. Thank you for all the knowledge and nuggets you had thrown my way over the last week .i started with 3k in last week now i just hit $12, 590…*

[laker]

How’s that BRICS thing working out? 😂😂😂

[scientistlarry]

Chinese government bond is always hard to purchase. Government does not want banks to buy bonds. Retail investors are especially restricted to the bond purchase. China wants the money to go to the manufacturing sector. Your title is opposite with what happened. China has huge savings. If they allow people to purchase, it drains the money from industry and government does not know how to use it.

[neolithictransitrevolution]

Man you made me think they were canceling bond payments. They just stopped QE.

[adrianlang]

A very interesting report. Thank you Joe, as always.

[brianfoley]

When the end of the world is close...I want a guy with a English accent telling me about it.