Tuesday, 16 September 2014

"Whatever It Takes": China Launches CNY500 Billion In "Stealth QE".

  

  Any real slow down in China is not just about the economy: it is about the ability to protect the status quo, please do not make any mistake that "Chinese Whatever It Takes" will be Enough. Where all this money will go? Hunt for resources continues.


Rob McEwen: McEwen Mining Live Webcast on Gold, Los Azules Copper, China and Argentina.

  

  Rob McEwen - our partner on Los Azules copper project in Argentina - has made the great presentation at Colorado. He talks about Gold, Silver and the potential value of Los Azules copper based on recent transaction with Lumina Copper buyout. Please carefully read my disclaimer and you can google this live presentation on the web, all TNR Gold information can be found on our website and always contact us to find more!
  Argentina is getting more and more attention now for its assets in mining and resources space. China's Trade Agreement backed by Currency Swap and George Soros make this story going into the headlines. Read more."



Acquisitions signal a turning market for miners. Canadian Junior TNR Gold holds back-in right into one of the largest copper deposits in the world.


"...However, recent deals have brought interest back to the market. These include the acquisition of Osisko Mining Corp. ($3.7 billion), Augusta Resource Corp. ($555 million), and Sulliden Gold Corp. ($300 million), all of which have helped push the 2014 total to more than 40 deals worth over $7 billion.For junior and mid-tier companies, First Quantum Mineral's recent acquisition of Argentina-focused Lumina Copper Corp. is a leading indicator. The $470 million deal, centered on junior miner Lumina's highly promising Taca Taca copper project (120 kilometres east of the Escondida, the world's largest producing copper mine), has spurred interest in companies with similar assets across the Americas. The purchase sets a much-needed price benchmark, an essential gauge in a market now accustomed to good companies with reduced market caps and undervalued assets. Read more."




ZeroHedge:

China Launches CNY500 Billion In "Stealth QE"



It has been a while since the PBOC engaged in some "targeted" QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it's time for some more. From Bloomberg:
  • CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS
  • PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA
  • PBOC PROVIDES 100B YUAN TO EACH BANK TODAY, TOMORROW WITH DURATION OF 3 MONTHS: SINA
Just as expected, the Chinese "derivative" currency, the AUD, goes vertical on the news, and the S&P 500 goes vertical alongside:

For those confused what the SLF is, here is a reminder, from our February coverage of this "stealth QE" instrument. Read more on ZeroHedge."