2024-03-27 08:59:01
On March 16, 2022, people crossed a bridge with stock signs in Shanghai’s financial district. (Hector RETAMAL/AFP)
[The Epoch Times, March 27, 2024](Epoch Times reporters Ning Haizhong, Li Yun, and Luo Ya interviewed and reported) The local financial regulatory authorities in Hunan, Liaoning, Xi’an, and Chongqing have successively announced the cancellation of financial asset exchanges (Part 2) (called the Financial Exchange) business qualifications. There is news that existing gold exchanges in various places will be gradually closed. Experts believe that the CCP had to close these financial exchanges due to reasons such as the poor economy and the credit bankruptcy of the CCP’s financial institutions.
On March 25, the local financial regulatory authorities in Hunan, Liaoning, Xi’an, and Chongqing all issued announcements stating that they would cancel the business qualifications of financial exchanges within their respective jurisdictions, and there will no longer be financial asset trading venues in the four places.
The four financial exchanges are Hunan Financial Assets Trading Center Co., Ltd., Liaoning Financial Assets Trading Center Co., Ltd., Xi’an Baijin Financial Assets Trading Center Co., Ltd., and Chongqing Financial Assets Exchange Co., Ltd.
Caixin reported that people close to supervision revealed that the closure of these four financial exchanges is the beginning, and existing financial exchanges in various places will be gradually closed. In the future, there will no longer be institutions such as financial asset exchanges or trading centers.
Xie Tian, a professor at the Aiken School of Business at the University of South Carolina, told The Epoch Times on March 27 that the CCP shut down the Financial Exchange for three main reasons:
The first is because China’s economy is declining, people’s incomes are decreasing, and the remaining money is also decreasing; the stock market is declining, it has fallen to around 3,000 points, and the CCP’s bailout has no effect; the housing market is not just cut in half, it is cut to the ground. The price of the neck has brought regarding a panic effect. Everyone saved the little money they had left, and no one bought financial products. As a result, the transaction volume of the financial market dropped sharply.
“For the CCP, it doesn’t want to do this. It has no choice but to do so. Without that much transaction volume, it will naturally close down. This is an economic reason for it to close down.”
The second reason is a matter of confidence and trust. Because these financial exchanges trade all kinds of bonds, many financial products have gone bankrupt in recent years. No one buys these junk bonds anymore. In recent years, bank deposit customers have often been deceived into buying financial products, and their investments are not insured. Chinese people also know that there are too many shady things inside, and they are even less likely to buy them now.
The third reason is that there are a large number of insider transactions in financial transactions. Once the senior executives behind the fund feel that the fund is no longer viable, they will cash in first, leaving other ordinary people who bought the fund to take the blame. Such fraud cases emerge one following another.
“Insider trading, a bad economy, and the collapse of the stock and housing market have led to the collapse of bonds and securities, causing transactions in China’s financial market to almost zero. There is no business to do, so we have to close down.” He said.
Public information shows that the first financial exchange in mainland China was the Tianjin Financial Assets Exchange, which was established in May 2010. After that, gold exchanges were launched in various places, with the number reaching 80 at most. However, in recent years, many enterprises and third-party wealth management companies have participated in illegal financing products that have exploded.
The aforementioned official announcement on the closure of gold exchanges also mentioned the risk of “fake gold exchanges” and required that except for trading venues approved by the central financial regulatory authorities, other local trading venues or enterprises are not allowed to use various names such as “registration and filing” , directly or indirectly providing services and convenience for the issuance and sale of various types of non-standard debt financing products.
“Shanghai Securities News” reported that this means that the Financial Exchange, which has grown wildly and frequently appeared in many financial risk events, will completely withdraw from the stage of history as a local trading venue.
According to reports, since December 2021, Guizhou, Ningbo, Liaoning, Hainan, Jiangsu, Hebei and other places have announced the ban on financial asset trading venues within their jurisdictions.
Gong Shengli, an independent economist from Mainland China, told The Epoch Times on March 27 that the closure of the Financial Exchange should be because it has no way to provide funds. “The Financial Exchange is actually a financing platform for local governments. It can no longer provide loans. What if you don’t close its doors?”
A mainland real estate central management cadre who cannot be named told The Epoch Times that local financial exchanges will have more and more illegal businesses, making it difficult for the central government to supervise. Now all financial exchanges that are not set up by the central government must be shut down, which actually involves local governments. Game with the central government.
Li Hengqing, an economist living in the United States, told The Epoch Times on March 27 that the CCP’s Financial Exchange has actually become a tool for related institutions to earn their own income in recent years. The Financial Exchange can issue bonds on behalf of companies on its own, but when financial risks arise, no one takes care of them and everything gets out of control.
“When the country’s financial system is operating normally, this situation will not happen. It is because everyone now feels that the end is coming, so they will run away immediately following receiving the commission, and they may even take away the principal. The CCP is now in a state of chaos, and this kind of chaos There will be more and more elephants in the future.”
Li Hengqing believes that when the CCP is dealing with these financial exchanges, it does not care regarding how much people’s money has been robbed. What is important is to maintain power. “It is now the lesser of two evils, because it cannot be controlled. If it is ignored, it may be more harmful to the stability of the entire regime.”
Editor in charge: Li Muen#
1711578600
#Financial #Exchange #completely #shut #Experts #point #CCPs #financial #credit #bankrupt #Thunder #Financial #supervision
