Wouldn't reccomend shorting RIO, already has a low PE, and it can gap up quickly this fella. Maybe the small caps would be better for shorting than larger caps.
Fuck that, it's the 30th birthday of a certain event that must never have existed in chinese eyes. Information control is sharper than usual and Vpns are down, can't open the links... will do later. We had a fire last week end in my neighbourhood, huge cloud of black and toxic smoke came out duringa few hours, gladly not in my house direction. Some warehouse used to build the harbour. Local pollution website probably noted the air crossed by the cloud as slightly unhealthy. Usually when it is bad enough european cities restrict car traffic, my Huawei mobile shows pollution levels from good to excellent... Fwiw there is still a lot of money around but i'm hearing of companies struggling amid trade tensions, folks having to work harder to find new markets or solutions to their existing markets. Not sure how many are impacted, nor how bad, business always has up and downs, which Stockolio doesn't appear to have lived through. Also passed by a huge black SUV Rolls Royce a few days ago I didn't know existed, quite a few Rolls around, with a starting price 3 times the US price afaik.
https://www.caixinglobal.com/2019-0...llion-worth-of-cars-this-month-101423431.html China’s auto dealerships still have millions of cars to sell this month if they want to clear inventories before a tough new emissions standard for new vehicles takes effect in July. As many as 3 million cars that do not comply with China’s State VI vehicle emissions standard are sitting on dealer lots across the country, according to China Automobile Dealers Association (CADA). That amounts to an estimated 500 billion ($72 billion) yuan in inventory value that dealerships must unload before the new standard takes effect and makes it illegal to sell them, according to a report the industry group released last week. The unsold inventories of vehicles that only meet State V emissions standard are so large that as many as two-thirds of China’s dealerships believe they won’t be able to sell all of them before next month’s deadline, according to a survey published last week by China Auto Dealers Chamber of Commerce. To make matters worse, many dealerships are locked in long-term contracts with automakers that force them to continue to buy vehicles that do not meet the updated standard.
The collapse has started!!! https://www.pymnts.com/bank-regulation/2019/china-banking-blind-spot-investors/ A hundred billion here, a few hundred billion there, and pretty soon it all starts to add up. The Financial Times reports that a $647 billion ( 4.5 Trillion Yuan ) “blind spot,” as measured by Barclays, exists in the financial reporting by Chinese banks — spanning both rural and commercial settings. That means, according to the data, that more lenders could be under greater government scrutiny and intervention, or may actually collapse. The data as compiled by Barclays comes in the wake of the state takeover of Baoshang Bank. That bank took its place among 19 that have a combined $647 billion USD equivalent in assets (hence the blind spot) that have not yet filed financials for the 2018 year. The delayed results signal that non-performing assets may have, as the financial publication stated, turned into bad debt. In another example, Bank of Jinzhou, among the 19 that have not published results, said that EY Hu Ming has resigned as auditor after it was found that loans had not been used for their stated purpose. The bank noted that EY wanted evidence of the customers’ ability to service the debt. The fact that no such evidence was offered may signal bad debt. The Barclays report said that “We expect more ‘exits’ of smaller banks or non-bank financial institutions (likely through takeover or M&A with bigger parties), most likely with some regional significance.” “This does have some impact on investors’ confidence in the market,” Dong Ximiao, vice head of Renmin University’s Chongyang Financial Institute, said to the FT.
https://www.journalpioneer.com/busi...-164-in-may-for-11th-month-of-decline-321337/ China reported the worst-ever monthly sales drop in the world's largest vehicle market on Wednesday, exacerbating concerns over the country's economic slowdown and growing impact of an ongoing trade war with the United States. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. In May, most automakers reported a decline in China sales, except Japan's Toyota Motor Corp and Honda Motor Co Ltd which logged double-digit growth. Wow!