Post, Post Script on Session 43–The Peoples Bank of China Speaks

BillAfter a prolonged silence during a week that saw a tremendous spike in SHIBOR (the Shanghai Interbank Offering Rate–the rate Chinese banks lend to each other) the Peoples Bank of China spoke earlier today. The Chinese market, after getting smashed earlier this morning, made a U-turn closing almost unchanged.

The interbank rate had spiked to 12+% last week.  It had been averaging around 3.2% this year.  This really spooked the Chinese market and finally bled into our market toward the weekend. While this was going on the Chinese Central Bank was notably silent, magnifying market angst.   BTW our media was discussing this yesterday as a possible “Lehman Moment.”  Feel the fear.

Here is a report from Bloomberg with a summary of the PBoC’s comments.  I’m also attaching a copy of Session 43 “The Double Whammy!…” for your reference.

What do you think?

The information presented in represents my own opinions and does not contain recommendations for any particular investment or securities.  I may,  from time to time, mention certain securities for illustrative purpose, names where I personally hold positions.  These are not meant to be construed as recommendations to BUY or SELL.  All investments and strategies should be undertaken only after careful consideration of suitability based on the risks, tolerance for risk and personal financial situation.



Leave a Reply

%d bloggers like this: