号外！China Dumps US Asset Backeds and Corporates

ppteam

It appears that this time China's posturing is for real. Following up on our earlier post that Chinese military officials want to "punish" America by selling Treasuries, Asia Times Online is reporting that an explicit directive by the Chinese government has notified reserve managers to sell all risky US assets, including asset backed and corporates, and just hold on to explicitly guaranteed Treasuries and Agency debt. And from following TIC data we know that China's enthusiasm for MBS/Agencies over the past year has been matched solely by that of one Bill Gross.


"
Dollar-denominated risk assets, including asset-backed securities and corporates, are no longer wanted at the State Administration of Foreign Exchange (SAFE), nor at China’s large commercial banks. The Chinese government has ordered its reserve managers to divest itself of riskier securities and hold only Treasuries and US agency debt with an implicit or explicit government guarantee. This already has been communicated to American securities dealers, according to market participants with direct knowledge of the events.

It is not clear whether China’s motive is simple risk aversion in the wake of a sharp widening of corporate and mortgage spreads during the past two weeks, or whether there also is a political dimension. With the expected termination of the Federal Reserve’s special facility to purchase mortgage-backed securities next month, some asset-backed spreads already have blown out, and the Chinese institutions may simply be trying to get out of the way of a widening. There is some speculation that China’s action has to do with the recent deterioration of US-Chinese relations over arm sales to Taiwan and other issues. That would be an unusual action for the Chinese to take–Beijing does not mix investment and strategic policy–and would be hard to substantiate in any event.
"

It is not clear when this directive takes place or if it is already being enforced. Juding by the afterhours action in futures and the currency markets, some dumping may already be taking place. Alternatively, we now know just who it is that sell into every rally (yes, even in this market, every buyer is matched with a seller).

ppteam

this is the first step; next is to stop buying US debts immediately.

javamood

中国已经彻底沦为帝国主义了
说好了又不算数了。

abaqus

Let's see the impact on the market tonight and tomorrow

tonghu

晕， 俺英文不好， 谁给个中文大意啊

1# ppteam

gardener2000

what will be the impact on USD?

spo

这个世界，唯实利说话。我们至少也过过帝国主义的嘴瘾好了

6th-Sense

1# ppteam


看来明天早盘有得一狠爹了。。。

RedCedar

Thanks ppteam!

spo

大牛：可以buydip吗？

1# ppteam


看来明天早盘有得一狠爹了。。。
6th-Sense 发表于 2010-2-9 22:11

tonghu

credit to google translate

看来，这一次中国的姿态是真的。继我们早先成立后的中国军事官员要“惩罚”通过出售国债，拉丁美洲，亚洲时报在线报道称，一个由我国政府明确指示已通知储备经理，出售所有美国资产的风险，包括支持和公司的资产，并坚持下去，明确保证债和机构债。而从下面的TIC数据我们知道，中国的热情按揭/在过去一年相匹配的一个比尔格罗斯单单机构。


“
美元计价的资产风险，包括资产支持证券和企业，不再想在外汇交易（外汇）国家政府，也不是中国的大型商业银行。我国政府已下令储备经理剥离证券本身的风险和保持一个隐含或明确政府的保证，只国债和美国机构债券。这已经已经送交美国证券交易商称，与事件直接了解市场参与者。

目前尚不清楚是否中国的动机是在一个公司和抵押贷款利差急剧扩大后，简单的规避风险，在过去两个星期，或者是否有也是一个政治层面。随着美国联邦储备委员会的特别设施，预计终止购买住房抵押贷款证券下个月，一些资产抵押已经吹了利差，中资机构可能只是试图让一个日益扩大的出路。有一些猜测，中国的行动是否与美最近的恶化，对军售中关系，台湾等问题上。这将是中方采取北京不会混合投资和战略决策不寻常的行动，因此很难证明在任何情况下。
“

目前尚不清楚这一指令时发生或如果它已被执行。巨鼎的期货业余行动和外汇市场中，一些反倾销可能已经发生。另外，我们现在知道究竟是谁那就是利用反弹卖出（即使是在这个市场上，每一个买家与卖家之间匹配）。

6th-Sense

大牛：可以buydip吗？

spo 发表于 2010-2-9 22:12

Yes! but may wait after Feb.22.....

abaqus

So far, the futures are still hold pretty well on the bottom of up channel

cboom

no impact to the future yet.
not sure who cares about this nes.

summer123

看来，这一次中国的姿态是真的。继我们早先成立后的中国军事官员要“惩罚”通过出售国债，拉丁美洲，亚洲时报在线报道称，一个由我国政府明确指示已通知储备经理，出售所有美国资产的风险，包括支持和公司的资产，并坚持下去，明确保证债和机构债。而从下面的TIC数据我们知道，中国的热情按揭/在过去一年相匹配的一个比尔格罗斯单单机构。

“
美元计价的资产风险，包括资产支持证券和企业，不再想在外汇交易（外汇）国家政府，也不是中国的大型商业银行。我国政府已下令储备经理剥离证券本身的风险和保持一个隐含或明确政府的保证，只国债和美国机构债券。这已经已经送交美国证券交易商称，与事件直接了解市场参与者。

目前尚不清楚是否中国的动机是在一个公司和抵押贷款利差急剧扩大后，简单的规避风险，在过去两个星期，或者是否有也是一个政治层面。随着美国联邦储备委员会的特别设施，预计终止购买住房抵押贷款证券下个月，一些资产抵押已经吹了利差，中资机构可能只是试图让一个日益扩大的出路。有一些猜测，中国的行动是否与美最近的恶化，对军售中关系，台湾等问题上。这将是中方采取北京不会混合投资和战略决策不寻常的行动，因此很难证明在任何情况下。
“

目前尚不清楚这一指令时发生或如果它已被执行。巨鼎的期货业余行动和外汇市场中，一些反倾销可能已经发生。另外，我们现在知道究竟是谁那就是利用反弹卖出（即使是在这个市场上，每一个买家与卖家之间匹配）。

ppteam

first, this news is real or not?
second. how much will China sell?
the impact to the equity market is hard to tell at this moment.

summer123

15# summer123


gg translate sucks

NingCaiChen

thanks

hbw

1. 确认消息的真假。
2. 不论卖掉什么，是否是盈利的？
3. 美国的反应。

ppteam

One thing is certain - China will now focus on doing precisely the opposite of what America would urge Chinese authorities to do, in order to establish itself as the focal point of negotiating leverage and increasingly humiliate the Obama regime. If this involves selling USTs or corporates (both fixed income and equities) so be it. This is further confirmed by carefully worded disclosure in today's copy of China Securities Journal:

    The China Securities Journal, a government-backed daily, accused the U.S. in a tough-worded front page editorial of playing the "exchange rate card."

    It said that, just as China didn't interfere with Federal Reserve purchases of U.S. Treasuries, "the U.S. has no right to interfere in China's exchange rate policy."

    "Whether or not to appreciate is our own business," the newspaper said.

    "Whether it will appreciate, when and by how much is an integral part of China's monetary policy."