China joining the banking meltdown

Intervening to stabilize the stock prices, not the actual banks. No new capital being raised.

It's a good thing (for me) that I'm not a trader, because I would have got this 180 degrees around. To me, the revelation that the government feels that it needs to intervene in this way is scary and is negative information. The market takes it the other way and bids up the stocks. I basically see the last month or so of headlines out of Europe the same way - the fact that the governments need to do what they have done/are proposing is clearly a sign of trouble, but the market states (via prices) at every opportunity that more intervention is better. I already believe that if there is a crisis there will be intervention, so when intervention is announced I take it as confirmation that the crisis is getting worse.

Hunan Provincial Expressway Construction Group is delaying payment on 3.11 billion yuan ($490.5 million) in interest, documents governing the securities show this month. Guangdong Provincial Communications Group Co, the second-largest debtor, is following suit. So are two others among the biggest 11 debtors, for a total of 30.16 billion yuan, according to bond prospectuses from 55 local authorities that have raised money in capital markets since the beginning of November.

As local governments delay payments for projects commissioned as part of the stimulus to ward off recession in 2009, less money is available for bank lending even as China is taking steps to inject more into the economy. The central bank has held interest rates at 6.56 percent since July to boost the economy, while the US Federal Reserve and the Bank of Japan have kept benchmark rates near zero since 2008.

"When companies start to roll over debt they're not retiring debt, and banks aren't retrieving their capital, so you're crowding out new lending," Patrick Chovanec, a professor at Tsinghua University in Beijing, said in a Dec 13 interview. "This is a problem that's going to start to bite next year."

Local governments had 10.7 trillion yuan in debt at the end of last year, 79 percent due to banks, according to the country's first audit released in June. So-called local financing vehicles that meet collateral requirements can have a one-time extension on their loans, Zhou Mubing, vice-chairman of the China Banking Regulatory Commission, said at a conference on Oct 24 organized by the Internet portal Sina.com.cn, according to a transcript of his comments on the website.

Guangdong Provincial Communications Group, Hunan Provincial Expressway Construction Group, Gansu Provincial Highway Aviation Tourism Investment Group Co and Sichuan Railway Investment Group Co owe more than 200 billion yuan to banks, the data show. They plan to defer 34.4 billion yuan in interest payments, according to their bond prospectuses.

http://www.chinadaily.com.cn/bizchina/2011-12/26/content_14326726.htm

So, they're not saving Manhattan RE?

sure they are- just ask Babs

well, the citizens of china might be. country is experiencing huge outflows of funds(for those that have it)

http://gawker.com/something-some-dumb-kid-said-on-kimmel-may-end-up-start-1463088737