Report: China to Restrict Selling of Stocks — Schemes Massive Liquidity Injection to Avert Crash

No idea how much weight this report has, but apparently the Chinese stock market has become one giant boiler room.

Notice about stock market in #China. No one is allowed to sell when the market resume on Feb. 3. Biding price to be controlled before opening, no net sell before Feb. 7. Needs special permission for sales over 10M yuan. #CCP fearing market crash #Coronavirus #CoronavirusOutbreak pic.twitter.com/lnGIdQJCe2

— ?? Jennifer Zeng (@jenniferatntd) February 2, 2020

For color, in the olden days of the late 1990s, NYC was wrought with bucket shops that promoted micro caps. If you worked at one of these brokerage firms and wanted to sell said stock for your client — your ticket was ripped up unless you had a buyer for the stock. It appears China is taking a cue from the Wolf of Wall Street and implementing such measures. Chinese markets are due to open tonight and it’s bound to fucking crash into an early grave — due to the vaporized lockdown of the country — total isolation from the rest of the world — and the plague that is scorching the countryside.

Source: ZH

Shanghai futures are down between 6-8%.

The People’s Bank of China announced that the total injection announced was 1.2 trillion yuan, the largest single-day addition of its kind in data going back to 2004. The money will be supplied using reverse repurchase agreements to ensure liquidity is “reasonably ample” during the outbreak, according to the PBOC.

The new measures follow the announcement last week that China’s biggest banks will lower interest rates for firms in Hubei, the center of the outbreak.

However, as Tommy Xie, an economist at Oversea-Chinese Banking Corp notes, the net effect of this admittedly huge liquidity injection is much lower as there are more than 1 trillion yuan of short-term funds scheduled to mature on Monday.

Separately, I have received emails from people working at industrial plants in China who say workers are due back in about 1 week and managers are very worried that people won’t show up to work — which would inevitably place a strain on the global supply chain.

Meanwhile, the price of copper is fucking Mcplunging.

In case you’re wondering about your beloved iPhone supply chain, Foxconn says don’t worry about it. They got this.

“Foxconn is closely monitoring the current public health challenge linked to the coronavirus and we are applying all recommended health and hygiene practices to all aspects of our operations in the affected markets. Our facilities in China are following holiday schedules and will continue to do so until all businesses have resumed standard operating hours,” the company says. It’s referencing the Chinese government’s extension of the Lunar New Year holiday, a measure to try to mitigate the spread of the virus by encouraging citizens to stay home and avoid travel.

“WE CAN CONTINUE TO MEET ALL GLOBAL MANUFACTURING OBLIGATIONS.”

“As a matter of policy and for reasons of commercial sensitivity, we do not comment on our specific production practices,” the company adds, “but we can confirm that we have measures in place to ensure that we can continue to meet all global manufacturing obligations.”

On the Wuhan virus front, here is the latest.

• The coronavirus outbreak has killed at least 305 people and infected more than 14,300 globally
• US Department of Homeland Security to enforce restrictions on travelers from China
• US national security adviser: “There is no reason for Americans to panic”
• Israel closes all air, sea and land traffic incoming from China
• All major cities in China’s Hubei province under lockdown
• Hong Kong confirms additional coronavirus case, bringing total to 15
• Tenth case of coronavirus confirmed in Germany

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