Financial Crisis In China

As we all know, the subprime crisis in the United States has lasted for 14 months. During this period, the U.S. government adopted a variety of ways to rescue the market, such as reducing interest rates substantially, injecting large amounts of capital, increasing market liquidity, but failed to extinguish the burning financial fire on Wall Street. Bear Stearns, Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, AIG In the past, the influential roles of Wall Street have been "fallen", or sold out for survival, or taken over by the government, or embarked on the road of bankruptcy. American media exclaimed: Wall Street is in the most serious financial crisis since the great depression in 1930s. This financial crisis originated from Wall Street has impacted the nerves of the whole world like a tsunami. Its breadth and depth are unprecedented. On August 16, 2007, the stock price of the largest commercial mortgage company in the United States plummeted and faced bankruptcy. The subprime crisis worsened in the United States. The Asia Pacific stock market suffered the worst decline since September 11 On September 7, 2008, the Federal Housing Financial Administration of the United States will take over Fannie Mae and Freddie Mac. On September 15, 2008, Lehman applied for the largest bankruptcy protection debt in the history of the United States of America. On September 18, 2008, the six major central banks of the world joined hands to rescue the market by 247 billion dollars. On October 3, 2008, the house of representatives of the United States approved a $700 billion financial system rescue bill On October 8, 2008, while China announced the interest rate cut, central banks such as the Federal Reserve, the European Central Bank, the United Kingdom, Canada, Sweden and Switzerland issued a joint statement to announce an urgent reduction of the benchmark interest rate by 50 basis points. The US government took over Fannie and Freddie on September 7. Fannie and Freddie suffered huge losses in the US subprime mortgage crisis, with a loss of 14.9 billion US dollars in a year. On September 14, AIG, the largest insurance company in the United States, applied to the Federal Reserve for a $40 billion emergency loan. On the same day, Greenspan said that the current financial crisis is once in a century. On September, the Central Bank of America and the United States announced the bankruptcy of US $61.5 billion, and the Bank of America and the United States gave up $6.1 billion in the purchase of Lehman Brothers and other securities, which reached US $3.5 billion. On September 17, the U.S. government provided $85 billion in loans to take over AIG. On the same day, trading in Russian stock market was suspended, and HBOS, Britain's largest mortgage bank, was run. On October 3, 2008, the U.S. House of Representatives approved a $700 billion financial system rescue bill. On October 7, under the dual pressure of the emergency of large European financial institutions and the difficulty of implementing the US $700 billion rescue plan in the short term, the global stock markets suffered panic selling on Monday, and all the major stock markets in various regions were spared, with a total market value of $250 billion evaporated in one day. On October 8, many central banks around the world finally offered an unprecedented rescue since the outbreak of this round of crisis. Lehman Brothers, a 158 year old investment bank, collapsed in just five days. "This is an economic" Pearl Harbor incident, "Warren Buffett said This is not a scene from a Hollywood movie, but a living reality that just happened on Wall Street. The investment bank that fell was Lehman Brothers. And the collapse of Lehman Brothers, so that the entire U.S. financial crisis triggered ahead of time. As a result, Richard Fuld, chairman and CEO of Lehman Brothers, told the media: "I wake up every night and wonder if I could have done better. This pain will be with me for the rest of my life On the evening of September 14, at the headquarters of Lehman Brothers in New York, two employees walked out of the company building with personal belongings. On September 15, outside the Bank of Lehman Brothers in London, the capital of the United Kingdom, a Lehman employee (later) hugged people in silence. Due to the serious financial crisis, the fourth largest U.S. investment bank, Lehman Brothers, announced that it would apply for bankruptcy protection on the same day. Xinhua / Reuters the impact of the crisis on China: CCB holds US $191.4 million of Lehman bonds; Bank of China holds US $75.62 million of US $Lehman bonds; Bank of Communications: holds US $70.02 million of Lehman bonds; Industrial Bank of China holds US $33.6 million of investment related to Lehman Brothers ICBC holds a balance of US $150 million in bonds related to Lehman Brothers. The bankruptcy of Lehman Brothers has affected ICBC's $70 million. There is no write down on the investment risk exposure between China CITIC Bank and Lehman Brothers of US $76 million. How many US national bonds have been purchased by the Chinese government??? How much evaporation does the stock market have??? Dongguan under the background of 200 billion yuan 2008 Songshan Lake "breakthrough from Dongguan to see the upgrading of the east coast of the Pearl River Economic Belt forum" on September 22, 2008: famous economist, senior researcher of the development research center of the State Council, Wu Jinglian, former director of the Macroeconomic Research Institute of the national development and Reform Commission, is now the consultant of the Asian bank Hu Chunli, Deputy Secretary General of Guangdong provincial government, director of development research center of Guangdong provincial government, director of regional and enterprise competitiveness research center of Guangdong Academy of Social Sciences, Ding Li, special researcher of Dongguan municipal Party committee and municipal government, Lin Jiang, practical difficulties of enterprises in Pearl River Delta, a famous economist and senior researcher of development research center of the State Council, attended the conference Wu Jinglian's words: the terms of trade are getting worse and worse, the imported goods are more and more expensive, and the life is more and more difficult.... 1. Rising labor costs, shortage of migrant workers, labor contract law suddenly introduced in a short time 2. Energy crisis 3. Land rent increase 4. Shortage of electricity and water 5. Appreciation of RMB 6. Export tax rebate policy 7. Monetary policy 8. EU sanctions on Chinese Shoes 9. Environmental protection policy According to the data of authoritative departments, from January 1, 2008 to August 31, 2008, there were 3200 Hong Kong funded enterprises and private enterprises, and 1100 Taiwan funded enterprises. In the first half of next year, it is estimated that there will be a large number of small and medium-sized enterprises which will be closed down in the first half of next year. It is estimated that a large number of small and medium-sized enterprises will be closed down in the first half of next year. The collapse of small and medium-sized enterprises indicates that the difficult days will continue and the stock market still has room for decline. The truth of "the tide of enterprise failure" is that 100 enterprises will go together. "At the end of 2007, there were 200 enterprises in Humen Town. This year is more serious than last year! "Said Shi Xian, director of the publicity, science and Education Office of Humen Town Government in Dongguan City. In the first quarter of 2008, enterprises in Humen Town closed down more than at the end of 2007. A large number of migrant workers left Humen. "Factories that don't leave have become empty shells, and there are only a dozen people left in a factory with more than 1000 people. It can be said that the processing industry is leaving Humen. " Li Shixian is extremely worried about this. Humen Town, Dongguan City, is famous for its garment industry. There are more than 1400 foreign-funded enterprises. Dongguan Changdeng shoe factory opened the prelude to the wave of bankruptcy of shoe enterprises. The reporter found that the landmark event that made Dongguan shoes enterprises in the vortex of bankruptcy was the closure of Changdeng shoes factory. On December 20 last year, Changdeng Shoes Co., Ltd., a Taiwan funded enterprise with nearly 4000 employees, located in datangtou village, Dongcheng main mountain management area, stopped operation, causing a great stir inside and outside the industry. On the first day of rework, the factory suddenly closed down. On February 13, 2008, Hongsheng mold factory in shigu village, Nancheng District, Dongguan City, which has been operating for 10 years, was blocked by dozens of policemen. It is understood that the Taiwan boss of the factory has fled with money on the day before the Spring Festival. Yesterday afternoon, the factory director surnamed Lu informed the village management area to block the plant, and more than 200 employees of the factory would be forced to leave the factory. Ten years old, the factory will be empty in the twinkling of an eye. Fuan withdrew from Dongguan under the pressure of cost on February 29th, Dongguan Chang'an Fuan printing and dyeing factory, a wholly-owned subsidiary of Hong Kong listed company Foton group, announced its withdrawal from Dongguan on February 29. At least 7000 employees are unemployed. Bankruptcy! Bankruptcy! On March 5, Chiling, Houjie Town, Dongguan City. On both sides of Dongming Road, iron gates of several factories are closed, and a shoe factory named "Dingfu" is pasted with court seals. The boss of "Dingfu" shoe factory fled back to Taiwan with the money from Sunday's rest, and has not appeared since. The factory's arrears of wages, supplier's payment for goods, water and electricity and other expenses have exceeded 20 million yuan. Guoxin shoes announced bankruptcy on April 23, 2008, Tangxia plant area of Dongguan Guoxin shoes industry Co., Ltd. Lai Caiyun, a female worker, fell down on the concrete floor, her face was covered with blood and five teeth fell off All this is due to the "layoff notice" two days ago. On April 21, more than 400 employees of Guoxin shoes industry, including Lai Caiyun, received the notice of resignation when the contract expired. Its employees no longer renew their contracts with the shoe industry on April 22, 2008. The way of compensation is to compensate each person for half a month's salary regardless of working years. Most of the more than 400 people who have been laid off are employees who have worked for 4 to 11 years, of whom 87 have worked for 10 years. Founded in 1985, Guoxin Shoes Co., Ltd. is the first batch of Hong Kong funded enterprises in Dongguan. It's just the same as the small start of the Pearl River Delta. From 2000 to 2003, this small workshop has become the leader of Dongguan slipper industry, with more than 2200 employees. Its products are well-known in the United States, Japan, South Africa and other international markets. However, in the past two years, due to the depression of the international market, the rise of raw material costs and the appreciation of RMB, the enterprises failed to bear the hardships and finally chose to close down. On May 28, more than 20 suppliers gathered in Sanjiang Industrial Park, Hengli Town, Dongguan City, at the gate of the closed Fengsheng paper products Co., Ltd. Before the bankruptcy, Fengsheng company was in arrears of more than 4 million yuan in payment. After struggling for more than a year, Fengsheng company finally chose to close down. Employees and creditors of Yongsheng Computer Co., Ltd. were gathered at the gate of the factory to collect debts. Taiwan Yingzhi group's Yongsheng computer hardware (Dongguan) Co., Ltd. and Yinglian sanitary ware (Dongguan) Co., Ltd. left on September 24, and they were also taken over by the government. Yingzhi group is a listed company in Taiwan