这代表中共央行以低于同期限的“上海银行间同业拆放利率（The Shanghai Interbank Offered Rate， Shibor）”几十个点的价格，将资金出借给大型商业银行，大型银行作为市场稳定器，再转拆借给其他商业银行，从中赚取差价。
Where Did 1.3 Trillion Go?
Sources say that China´s big four banks have seen
a 1.29 trillion yuan negative deposit as of Oct. 27.
Several hundreds of billions of stocks flowed out.
China´s Central Bank restarted the reverse purchase
operation (repo) after having ceased it for two weeks.
However, 13 billion yuan injected into the system still
couldn´t resolve the cash shortage crisis.
The repo rate increased from 5% to 5.23%.
Within seven days the repo rate approached 5.6%.
National bonds were in less demand,
resulting in a cash shortage reoccurrance.
Some people questioned, “where does the money go?”
Let´s take a look.
On October 31, “Shanghai Securities News”
reported information from a reliable source.
Industrial and Commercial Bank, Construction Bank,
Bank of China and Agricultural Bank deposits had
continuing outflow, and the trend hasn´t improved.
As of October 27, these four big banks saw a 1.29 trillion
yuan in outflow of deposits during October alone.
280 billion yuan has flowed out compared to last week.
Mr. Zheng, Chinese financial investment consultant:
“The cause of the credit crunch is that the banks lent money
to the state-owned enterprises and the local governments.
Once the Financial Supervisory Commission went to the State
Council (chasing payment), they dared not to speak anymore.
Thus the banks have to set up their own asset management
company to put these companies who owe them money
in an auction, selling them to the state.
Finally, the loss certainly will be paid by civilians,
which can also cause inflation.”
The deposits dragged down, but loads didn´t increase.
Sources say the big four banks extended only 93 billion yuan
in new loans as of Oct. 27.
Nevertheless, where is the money?
Ren Zhongdao, Chinese financial analyst: “The analysis
shows the money didn´t flow into the economy.
For example, there are only 93 billion yuan in loans.
Compared with 1.2 trillion, that is a big difference.
I believe that the money has flowed out,
it is impossible to withdraw the cash
and hold it in their hands.”
Meanwhile, the cash shortage caused less demands for newly
issued national bonds.
On Oct. 30, the Financial Ministry issued national bonds
with a one-year fixed rate of 4.01%, which
is higher than the estimated of 3.74% – 3.9%.
But not many people are buying it.
As the money shortage is worrying many,
the gold market appears to be in a panic.
On Oct. 30, the Chinese gold closing price was below
the global price for the first time this year.
In addition, stocks are constantly flowing out.
Shanghai Wind Information statistics shows that
from September 2 to October 16,
160 billion A-shares have flowed out.
The daily outflow is 6.2 billion yuan.
Ren Zhongdao: “Various funds accelerate flowing out China,
including foreign currency, fleeing through a variety
of trade channels and underground banks.
Even some investors say that the current Chinese economy
is not very good, the crisis is on its way.
Thus people are cashing out their shares and gold.”
China Construction Bank´s Quarter 3 report shows,
at end of Q3, the Construction bank borrowed loans
from Central Bank, and it increased from 6.28 at early
this year to 222.43 billion yuan by now.
It has increased 3441%.
This phenomenon also occurred at the three other big banks.
China´s Central Bank lent money to big commercial banks
at a lower rate than the Shanghai Interbank offered rate.
The commercial banks re-lent the loans to the other
commercial banks to make a profit.
Ren Zhongdao: “We´ll take real estate as example.
If the real estate companies can´t get a loan from the banks,
they approach the trust companies, telling the trust companies
that they can pay a 10% interest rate and let the trust company
handle their funds.
Then the trust companies create a package telling the public
that they can offer 5% interests rate.
In the end, the people pay the bill.”
On November 1, Shanghai´s China Business News newspaper
reported that 600 million yuan is missing
at a fundraising company in Ningbo.
A manager at a branch of Ningbo Bank was involved
in the event.
He fundraised the money from clients for a project.
An elderly couple injected one million yuan of hard-earned
money but in the end they can´t cash it in.
They are so worried.
Mr. Zheng: “The bank sectors are gradually transferring risk.
The increasing fundraiser products are the way
the banks transfer the risk.
Actually, the money was transferred
to somewhere else from the banks.”
On Oct. 29, Li Wei, director of the State Council
Development Research Center, spoke in a forum.
Li said that the bubble burst phenomenon
appeared in third and fourth-tier cities.
Financial investment consultant Mr. Zheng says that the banks
lend people´s hard-earned savings to the rich to make money.
Once the housing bubble burst, the Central Bank
will issue more bank notes to maintain the stability.
Finally, the inflation risk will be loaded on civilians´ shoulders.