Super Typhoon Yagi hit China, shaking high rises and forcing people into basements

Super Typhoon Yagi hit China, shaking high-rises and forcing people into basements. China's bankruptcy and closure crisis just begins. One street closes seven stores in 10 days. On the afternoon of September 6th, Super Typhoon Yagi made landfall in Wenchang, Hainan Province, China, with a maximum wind force of 17 at its center. Local residents living in high-rise buildings reported that they couldn't stand upright, couldn't maintain balance, and felt dizzy. Some were so frightened that they took their children to the basement for shelter. Super Typhoon Yagi landed with howling winds. At around 4.20 p.m. on September 6th, Typhoon Yagi made landfall in Wenchang, Hainan, with winds reaching 17 on the scale, equivalent to over 62 meters per second. According to the Meteorological Bureau, Typhoon Yagi moved northwest, passing through Wenchang and Haiku, and is expected to reach the Beibu Gulf late at night or by the following morning. That day, Wenchang was hit by both the typhoon and heavy rains. A mainland media reporter mentioned that the rain hitting his face was painful, making it difficult to open his eyes. Rows of guardrails on the streets were blown down, and several trees, as thick as a person, were uprooted. Many locals recorded videos showing the immense power of the typhoon. Guardrails along the beach were also blown away. Some passersby who couldn't find shelter lay on the ground, using flowerbeds as cover to avoid being swept away by the wind. Water and electricity were cut off in many areas, including hotels. The roof of an electric car shed near a building was blown away, and all the electric vehicles were knocked to the ground. High-rise buildings were shaking, forcing residents to seek shelter in basements. Residents in high-rise buildings were too scared to stay upstairs as the entire building shook. A man who enjoys cars filmed a video, describing the experience as feeling like being in an 8.0 magnitude earthquake. Many residents fled to the lobby on the ground floor, hiding in corners to avoid the wind blowing through the doors. A mother born in the 1980s in Wenchang, Hainan, said, the building was shaking so much I didn't dare stay in the high-rise. I took my children to the basement for shelter. However, when she reached the ground floor, she found the corridor flooded with dirty water. The decorative walls and ceilings were blown off, exposing dangerous electrical wiring. A woman living on the 24th floor of a building in Hainan said, the building is shaking so much I can't stand steadily. Her friends gave her advice. Some suggested she go to the underground garage or corridor for safety, while others warned her not to go to the garage in case seawater surged in. A netizen named Ayu, who lives on the 22nd floor, compared it to being on a boat, saying the building was shaking violently. Teacher Huang, living on the 26th floor, said, the whole building is shaking, people are dizzy, there's water in the living room, and the kitchen ceiling is tilting. She exclaimed, oh my god, oh my god. Residents, I was afraid to hide in my room and listen to the sounds. The balcony window frame flew off. Some netizens shared in comment sections that many people wanted to live stream the typhoon, but were blocked from doing so, preventing them from showing friends elsewhere the typhoon's intensity in Hainan. A woman living on the fifth floor in Longhua district said, the window is broken, and the power has been out for five or six hours. The wind outside is really strong. I'm hiding in my room, scared, just listening to the sounds. Videos circulating online showed broken windows as a minor issue. Heavy air conditioners mounted on the balconies of high-rise buildings were blown to the ground, creating chaos. Many residents' window frames were blown away, leaving their homes in disarray. Some large floor-to-ceiling windows cracked from the force of the wind. One Hainan netizen said they were on the verge of collapse. The eight frames of the large balcony windows on the first floor flew off completely. I didn't dare go downstairs to take a photo. The study window on the second floor is also gone. I'm focusing on staying safe. I've shut the doors of each room and blocked the gaps with towels. I have no idea how I'll make it through the night. A young man in Wuyuanhe, Hainan, was relieved that his community still had electricity, while all surrounding areas experienced power outages. Social media posts showed that power boxes in several communities had exploded. China's bankruptcy and closure crisis just begins. One street closes seven stores in 10 days. China's economy is weak, consumers are tightening their purse strings, and the country's catering industry is facing a wave of bankruptcies. Data from the plummeting profits of catering companies in Beijing and Shanghai may illustrate the true state of the industry. Some reports suggest that the wave of bankruptcies in the catering sector will intensify, and the real disaster has only just begun. The Communist Party of China's dynamic zeroing policy over the past three years has severely impacted the economy. After the lifting of the epidemic restrictions, there was little hope for economic recovery, and various industries remain depressed. Terms like youth unemployment rate, consumption downgrade, middle-class poverty, and cliff-like salary cuts have frequently appeared as trending topics. As economic indicators, first-tier cities such as Beijing and Shanghai have seen particularly tough conditions for the catering industry. Data shows that in the first half of this year, the total profit of catering companies above a certain threshold in Beijing was 180 million yuan, an 88.8% year-on-year decrease, with a profit margin as low as 0.37%. In Shanghai, accommodation and catering businesses above the same threshold reported a total loss of 770 million yuan. According to hongkong.com, a recent survey revealed that in popular business districts and streets in cities like Guangzhou, Shanghai, Beijing, and Chengdu, the site of restaurant closures and high vacancy rates is shocking. What's even more concerning is that this wave of closures may have just begun. Seven restaurants closed in 10 days on one street. This year's catering industry is really too competitive and difficult. A senior catering professional in Shanghai reported, in the Pudong New Area of Shanghai, a commercial street saw seven restaurants closed down in just 10 days, with some having been open for only half a year. A report on September 5th indicated that as of June 30th, nearly 1.06 million restaurants had closed in the first half of this year alone, and by the end of 2023, closures could surpass 2 million if the trend continues. The report also noted that in the first half of this year, the catering industry's downturn caught everyone by surprise. Without warning, the market fell by 30% to 35%, with some sectors dropping by more than 50%. Even fast food, which is typically in high demand, saw a decrease of more than 25%. Many mistakenly believed that the decline only affected large chains in the first half of 2024, overlooking the struggles of small and medium-sized catering businesses. In reality, most of the closures were among first-line stores. The difficulties faced by the catering industry are reflected in the widespread shuttering of physical locations. In early July, Wang Guoyu, owner of the Beijing fast food chain Nanchengxiang, publicly lamented declining performance and profits. He noted that even during the peak season, business wasn't thriving, and he warned fellow restaurateurs that a difficult winter lay ahead. The report stressed that restaurateurs should abandon any hope of a quick recovery. The closure rate for catering businesses is expected to remain high for a long time. In fact, as China's catering chain market surpasses a 50% chain rate, competition in first-tier cities is fierce, and with an oversupply of stores, closures are expected to continue. An article from Lang Club on Sina Finance indicated that the catering situation in Beijing and Shanghai is a microcosm of the broader national industry, especially in first-tier cities. In 2024, operating a restaurant is difficult, and even more so in first-tier cities. The report also pointed out that consumer habits have shifted downward, with people dining out less frequently and being more frugal. Moreover, with the economy struggling, business exchanges and banquets have decreased, further dampening the catering industry. Many major restaurants across the mainland have responded by offering low-cost meal packages, with the poor ghost package priced at 9.9 yuan becoming commonplace. In conclusion, the catering industry is just a reflection of broader economic climate. The winter may last longer than many people expect, the report warned. China. Is a financial tsunami coming? Over 50 banks and thousands of branches closed. China's economy is in a serious recession, with waves of collapse, bankruptcy, and unemployment spreading to the banking sector. Since the beginning of this year, more than 50 banks in have gone bankrupt, and nearly 1,500 bank branches across the country have closed. Economists and analysts warn that a financial tsunami in China may be imminent, and more bank failures and collapses are inevitable in the near future. According to the latest data released by the State Administration of Financial Supervision of the Communist Party of China, at least 50 small and medium-sized banks have been dissolved this year, the vast majority of which are rural small and medium-sized banks. At the same time, the wave of mergers and reorganizations of small and medium-sized banks has accelerated. For instance, Liaoning Rural Commercial Bank absorbed and merged 36 rural small and medium-sized banks, while Shenyang Rural Commercial Bank merged with 30 rural credit cooperatives. Experts believe that China's economy is in severe recession, and bank bankruptcies, mergers, and reorganizations are the general trend. Xie Tian, a professor at the University of South Carolina, said, The reason is obviously that the entire Chinese economy is in a severe recession, and even the financing activities and financial activities of real enterprises are declining, resulting in decreased bank profits, bad debts, abnormal capital flows, or shortages of funds, and significant losses. Experts predict that more small and medium-sized banks may fail and close down in the future. Xie Tian also stated, Over time, more banks may face the same risk of failure. According to incomplete statistics from the State Administration of Financial Supervision of the Communist Party of China, as of July 25, nearly 1,500 bank branches have been closed, including major state-owned banks, city commercial banks, and rural commercial banks. In 2023 and 2022, 2,756 and 2,383 Chinese commercial bank branches were closed, respectively. Analysis points out that behind the wave of bank failures is usually an impending financial tsunami. Taiwanese economist Wang Shichong said, It also means that the country's economy has very big problems, including a sluggish banking industry, a sluggish real estate industry, sluggish corporate loans, and sluggish private consumption. Similar financial turmoil has occurred in Europe, the United States, and Taiwan. They have allowed it to collapse and then merged to quickly heal the wounds and stop the bleeding. However, the CCP's strategy is to wait for changes, so there may be more Chinese bank collapses in the future. China's economy in a deeper quagmire than Japan's in the 1990s. The latest data shows that China's economy is still in a deep quagmire, with various stimulus policies from Zhongnanhai failing, and the country officially entering a balance sheet recession. Lu Ting, chief economist at Nomura Securities, commented that the environment facing China be more difficult than that of Japan in the 1990s. According to Chinese statistics, in the second quarter, foreign direct investment, FDI liabilities, decreased by nearly $15 billion. This is the second time this figure has turned negative. The previous instance was during the Asian financial crisis in 1997, and the outflow amount was also higher than the $12.1 billion recorded in the third quarter of last year. Assessing the turning point, in early 2022, when the CCP locked down Shanghai, foreign direct investment began to decline sharply and has not recovered since. The sharp decline in new loans shows that the vast majority of Chinese companies have become flat, unwilling or afraid to borrow to invest. The Social Financing Scale report released by the People's Bank of China last week showed that new loans were 260 billion yuan in July, down nearly 88% from the previous month, and far below the 450 billion yuan expected by analysts polled by Reuters. This is only about one-tenth of normal months, and the decline can be described as dramatic. Moreover, the People's Bank of China released cumulative data from January to July this time. Many data points do not include separate monthly figures for July and need to be calculated separately. According to Reuters calculations, household loans, mainly home mortgages, fell sharply by 210 billion yuan in July, while rising by 570.9 billion yuan in June. Corporate loans fell directly to 130 billion yuan from 1.63 trillion in June. The official explanation given by the CCP is to squeeze out water, meaning the difference is caused by statistical magnitude. However, looking at the direct M1 of individuals and enterprises, the M1 balance fell 6.6% year-on-year, and the growth rate is still negative. At the end of last month, it was down 5% year-on-year. M2 increased by 6.2% year-on-year, which shows that most companies and individuals prefer to convert their current deposits into time deposits or financial management, rather than investment or consumption. This is a typical flat collective. Since July, more companies and individuals have begun to transfer their deposits into financial management and purchasing, greatly increasing the price of government bonds. This will increase China's financial risks because the corresponding government bond interest rates for the central bank, the increase in long-term interest rates, and government bond prices will lead to a decrease in long-term interest rates and the risk of yield inversion. This makes the CCP very concerned. The method calls for a direct ban on rural commercial banks, securities companies, etc., from conducting government bond transactions. However, it is obvious that it is not working well. Total social capital decreased in July, marking a major turning point in the decline of the balance sheet. Last year, Japanese economist Kusho Ming proposed a theory of balance sheet recession, based on Japan's 30 lost years, which has aroused widespread concern in the Chinese government, industry, and academia. He pointed out that the cause of this recession is high debt in the private sector, which often causes individuals or companies to repay debt first to increase savings instead of consumption or investment, which in turn leads to economic growth slowing down or declining, and eventually an economic recession. Since last year, Chinese scholars have generally believed that, unlike Japan, there is no such thing as a balance sheet recession. The first seven months of this year saw total social financing of 18.87 trillion yuan, a sharp decline of 3.22 trillion yuan compared to the same period last year, down 14.6%. Looking at the month, new RMB loans in July were 260 billion yuan, down 85.9 billion yuan from 345.9 billion yuan in the same period in 2023. This is the first decline since July 2005. So the economic community has once again begun to debate, has the Chinese economy entered the model of Japan's Great Recession in the 1990s?