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Q: Brace for impact
So I went to my local Bank Of China branch for some routine operation, and discovered the bulk of financial products that seem to have grown in the last weeks. It's not even that I was actively looking to, but apparently the clerks now have a duty to be salesmen for these. Yeah like they weren't slow enough already.
Anyway, short to middle term stuff with all kinds of yields, all kinds of guarantees, definitely smells like desperation to leverage cash, and oh boy dare not you think of all the toxic bullshit waiting to blow over, pre-2008 style.
And, I repeat, Bank of China, 1st tier city.
Look I don't want to be the tinfoil hat guy but honestly, there's a sore morning waiting somewhere in the near future.
PS: icniff, I don't care about your dumb copypastas and so does everyone ever. Just don't fucking answer.
8 years 33 weeks ago in Teaching & Learning - Lanzhou
I genuinely like China....mostly.
However I truly believe it is just better to buy a safe when you arrive and shove your foreign and Chinese currency into that, than actually deal with a moronic Chinese bank....when possible.
Banks in China serves only one purpose, taking care of peoples money. As it turns out, the peoples money is also the CCPs money.
Even Bank of China, which has perhaps the best reputation of any of the mainland banks, is still pretty dodgy. Just the fact that you can go from one branch to another, in the same town, and get widely different advice/products/service tells a lot about how the place is run.
andy74rc:
Bank of China might have the best reputation because the name is reassuring, but I can tell you that I found a pretty bunch of incompetent people in there, in different branches and on different topics/issues.
For the record, worst experiences with ABC, the best with Citic.
Finacing products are not appealing that much these days. Interest rate lowers than before now.
icnif77:
What is the point of this thread? Banks in China are offering higher (or lower) 0.001% interest rates for saving accounts? Ohh, really? Let's hurry up.
I always thought that's the only purpose of the banks.
Or 'Banks (since last night) are offering loads of interest rate vehicles....., so we should think about what's ahead of us'. Bravo Riri!
PBOC 'floats' Rmb, and revalue it twice already for small 0.0% since August devaluation. Rmb is not pegged to US$ anymore as it is HK$. Watch for the cover, when that peg broke down.
Riri is acting as Taco-Bell Sheriff again, does he?
Ohh, please don't post here! Why did you open the thread then? Only for invited posters? I'm sorry!
You're the same poster on 'expatlife' handle, however now you're elsewhere. Lanzhou, whoow!
I'm telling you, this is 'mercian posters Board. Stop posting here!
In answer to the 2nd paragraph, yes it does.
And the recently announced ceiling to public debt, if truly executed as stated, sure is not gonna help deleveraging the exposures of the banks.....
Central govt is closing the cash taps, banks are overexposed to local governments, and local governments don't have ways to finance their projects to keep the ball rolling (unless the begin to collect seriously taxes).
At this stage, to keep the whole system going, China needs desperately to be included in the IMF reserve currency board, to vent out potential inflationary pressures (and consequent currency devaluation) to open the tap again to refinance the whole system. Till then, financing money has to come from somewhere, and that somewhere is the pockets of the people.
icnif77:
Did you try China Merchants Bank? They aren't much better on competence level than other banks, but their Gold account with Visa/Mc card is excellent for laowai. Every CMB I was in China, they had an English speaking teller.
Initial deposit to open Gold account was 1000 Rmb. 50k Rmb balance minimum, if lower 50Rmb fee/m applies, US$100k (or 50k??) exchange per year to any currency, spot rate applied, no fee.
If you use an ATM abroad (for purchases), funds get deducted from Rmb holdings on account, spot exchange rate applied, no fee. You must announce cash foreign currency withdrawals a week ahead.
Must have Residence permit and FEC (two Chinese docs.).
Please stop and think about what you are saying. When was the last time you were in a Chinese bank? When was the last time a Chinese bank tried to get money off you? They don't have to. They already have your money. It is already invested. That's what banks do. They invest your deposits.
Lets get this right. It's Chinese growth that is slowing down. It is still growing. It might be revised down from 8% to 5%, or 4%, but it is still growing.
It is the growth that has slowed down. But it is still growing.
China is still growing, but not as fast as the west anticipated.
So the pension funds, and the Hedge funds are panicking. So what?
Have you ever met a banker? I have. We all have. We have all had emails from the financial advisors. We have all seen the adverts for investments on main news sites, thanks to location clicks.
The real fact is, growth is slowing in China. But it is still growing. The financial guys who have your money are panicking because they think they wont meet their bonus. But these guys don't just have your private or corporate investments, they also own your Government investments.
Your Governments sold it to them. Just the same as China did last week..
Meanwhile of course, the CEO's proclaim doom and gloom. Of course they do. Because the drive for profit is pushing salesmen beyond their ability. So the salesmen take the easy route on their visit reports.... the market is slowing.
What they should be saying is the market is fine...... you greedy banker wankers are demanding too much.
China tried to create a housing bubble based on Western models. But failed because the developers wanted too much.
This is not another Fanny Mey. This is an adjustment.
rasklnik:
You are displaying a woeful ignorance of the facts...The 7% growth is the number the CCP needs to maintain legitimacy. They have said so on numerous occasions, so I'm not going to link to them.
-This is close to a Secret Speech moment, a moment where even the party knows it can't lie any more.
-The boom and bust cycle is a natural part of Capitalism, it goes back centuries, and isn't really a 'persons' fault.
earthizen:
"They don't have to. They already have your money. It is already invested. That's what banks do. They invest your deposits."
There is a difference my friend, while it is true that banks invest your savings (e.g. giving it out as loans), they are (by law) required to give you back every penny if you keep it as saving. Not so if they succeed in luring you to invest your money into their "investement vehicles", most common form is trust funds. When you do that, you personally (not them anymore) are responsible for any losses, as they (fund managers) take off their share (management fees) regardless. Huge difference. This is how tens of thousands of people lost their savings (some entire life's) in the Lehman Brothers incident.
Have you seen them crying, weeping, protesting in front of the banks who sold them funds that invested in Lehman Brothers? I have. Some unsympathetic ones sneered at them, "you greedy little fishes, you deserve sharks' bite". But, many of these were retired folks who listened to those young aggressive bank sales (who called themselves customers relationship managers, pretending to be knowledgeable professionals, guaranteeing "next to zero risks" ) who in truth, couldn't care less about their customers' money except getting you to invest your money in their "investment" pool. These ones, mostly fresh graduates, are heartless. One second spent on listening to their sales pitch is one second wasted.
How did I know that? I personally knew a few while doing volunteer work (same team), they worked for HSBC. Yes, as big as HSBC. The ones I knew still had some conscience left, they resigned after the Lehman Brother fiasco, left the banking field. They knew what they had done. And someday they will have to pay for their oversale-grey area lies. But, these were the exceptions, not the norm. If you want to be safe, stay the hell from these "investment professionals" inside banks the way you avoid plagues. I am sharing this with you in the hope that this info would help you, hope you take it the way it is intended.
Shining_brow:
Also - no, not everyone uses banks. Some do like the feel of the (old, grubby) paper in their hands, under their beds, etc. Especially the older generation. So, the banks want that as well!
Besides - Bank X doesn't have everyone's money... and that's what they want. Banks Y, Z and others have that money. Bank X can't do anything with the money in bank Y & Z. So, they want to you to go to bank Y & Z, pull all your money out, and give it to X.
Nationally, it makes no difference. To the person on the counter who gets bonuses, it makes the world of difference.
And, also consider the number of tuhao and others who have been investing in business, rather than banks. And the number who have been sending their money overseas.
China would be smart (hahahaha) if they actually invested in education! Australia alone gets billions of dollars from overseas students... as does America, Canada, US, NZ, UK, Germany, France, etc etc etc... That's a lot of money that could remain here - or come here.
ScotsAlan:
Sorry for my rant. I entered the job market in the 1980s thatcher years in the UK. That was a time of real desperation. But Maggie won. She got what she wanted. And the mess today and the mess that is to come, is down to Thatcher and Reagan letting Wall street and the City losse on the financial markets. There... Done my grandad bit
I believe to certain way of thinking, and as example, mr. David Icke. He pointed out the strategy of" governments " to get rid of cash slowly so we all have just the digital currency. Just numbers on screens. It works well in US, in Europe and here too. More and more people pay contactless or by mobile phone. Even my bank card is contactless and I didn't knew until my last visit to McDonald's.
Take it together with the stock hole. People pour real cash and it vanished in digital way. People are hungry for safe storage and growing your money tree, so they Wil eventually fall in some new BS. I can see personally many scams running over the internet, with blind eye approval of govt or police, pouring cash and than company get lost. No way to get it back.
And this will continue. People in debts, with no real cash, what will happen ?
