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China Margin Debt Hits 8-Week High, Japan Pumps'n'Dumps As Kyle Bass Fears Looming EM Banking Crisis

Following Marc Faber's reality check on China recently, Hayman Capital's Kyle Bass took a swing tonight noting that "China's 7% GDP growth is a farce," and adding that, just as we detailed previously, China's credit cycle has begun and non-performing loans will rise rapidly leading to an emerging Asia banking crisis ahead. Japanese markets continue to entertain with "someone" insta-ramping NKY Futs 100 points at the open only to give it all back as USDJPY slides back towards 120.00 (and 10Y JGB yields drop below 30bps for the first time in 6 months).

Hayman Capital's Kyle Bass discusses China at Sohn San Francisco:

  • *HAYMAN'S BASS SAYS CHINA 7% GDP GROWTH IS A 'FARCE'
    *HAYMAN'S BASS SAYS HE'S ASSUMING CHINA CREDIT CYCLE HAS BEGUN
    *HAYMAN'S BASS: CHINA WILL FACE NPL CYCLE, CREDIT CONTRACTING
    *HAYMAN'S BASS: ASSUMES 8.5%-10% CHINA LOANS NON-PERFORMING
  • *HAYMAN'S BASS SEES EMERGING ASIA BANKING CRISIS AHEAD

Confirming our previous detailed analysis on China's Banking System's Neutron Bomb.

China continues to drift quietly under the hammer ofthe Polituburo ahead of The Plenum

 

The Chinese continue to lever up...

  • *SHANGHAI MARGIN DEBT BALANCE RISES TO EIGHT-WEEK HIGH

 

*  *  *

Japanese markets are once again a farce also...

A mysterious insta-buyer lifted Nikkei futures 100 points in one big bid at the open, but USDJPY continues to tumble as hopes of moar from The BoJ fade...

 

It's been a ride..

 

10Y JGB yields are back under 30bps - lowest in 6 months...

 

The spread between Offshore an Onshore Yuan continues to widen suggesting outflows are picking up once again.

 

Charts: Bloomberg