The theme we will address has never attracted as much attention as it does in the current days. The recent success editorial of the book "The Da Vinci Code" by Dan Brown instigated the imaginary, through a narrative that involves all of these matters related to the life of Christ questioning and presenting conjectures and theories, some credible and many others, in my view, without a lot of reasons, such as the mention of the work of Leonardo Da Vinci, "the Last Supper".
https://youtu.be/i6-drL7fuqs
Before we talk about the meaning of Leonardo's work, let's quickly address some aspects of his life to understand the context in which all his work developed.
Leonardo was born in April 1452 in Vinci, a village near by the Florence, son of Piero da Vinci, a notary, and a servant. Leonardo was an illegitimate child, having no rights to his father's estate. But his father, zealous, did not abandon him, having assumed his creation. We must remember that Leonardo was born in the middle ages.
The end of the middle ages is determined by the fall of Constantinople in May 1453. Of course the change from one period to another does not occur through a single event. This is a process of transition that involves multiple events.
With the end of the Middle Ages we have the Renaissance, with the resurgence of the appreciation of man as a factor of relevance in all contexts. Begins Humanism, a movement that revolutionized the thought, emerging new concepts and worldviews. This new concept is a precursor of specialization of knowledge, resulting later in the systematization of human knowledge, with scientism and segregation of knowledge that until then was unified.
Leonardo is more a medieval wise man than a person aligned with trends Renaissance because he was not restricted in specifics knowledge like other geniuses contemporaries geniuses. He had a broad knowledge. He was not only a painter. He was a sculptor, musician, architect, engineer, inventor, anatomist, and also an astrologer, although his biography does not to mention about the universe of hidden knowledge. In short he had a universal knowledge. In all areas he left the mark of his genius.
When he turned 14, his father had placed him as an apprentice in the arts studio of Verrocchio who was a great master of Florence. The art workshops held not only artistic works such as paintings and sculptures, but also construction of buildings, bridges and works of engineering, metallurgy, war machines, everything that required creativity of man to make some kind of artifact.
Leonardo soon excelled in all these arts, having participated in the production of a painting by Verrocchio, by order of Lorenzo Medici, ruler of Florence. He did paint an angel face on a canvas and the delicacy of the lines and the play of light, called the attention of the Medici family, who came to protect him. At this time, the success did not depend on talent, but especially the figure of a protector, a Maecenas.
The Italian peninsula, at that time, was a region of many disputes, without the identity of a country, which has consolidated only in the second half of the nineteenth century with Garibaldi. There were city-states, which they lived in strife. Wars were fought systematically, in order to solidify the power of the clergy. In this context, a war was deflagrated against Florence, promoted by the Vatican, for there were many interests of political composition, dominance, hegemony and economic supremacy.
Leonardo facing this situation, after serving the powerful others, as the Borgia, for example, just moving to Milan, had offered his services to the Duke Ludovico Sforza. Just to get an idea of the talents of Leonardo, he presents his resume as primarily military engineer, as he liked to be recognized, Architect, Builder Weapons, inventor, musician and at the end of the list of qualifications is painter and this is just his ability is that Duke engages him. Ludovico became the new protector of Leonardo.
Among the many works that Leonardo executed custom Ludovico is the "Last Supper." The work should decorate the refectory of the Convent of Santa Maria delle Grazie. The work began in 1495 and was completed in 1497. In reality it did not complete. By the way, no work of Leonardo, except St. John and baby Jesus was completed. Were several lawsuits filed against Leonardo because he did not fulfill contract. Leonardo spoke "creation is divine, execution is slavish!"
https://preview.redd.it/fk3rhe5hz6pa1.jpg?width=1200&format=pjpg&auto=webp&s=fd7f147e06e72dca0ff296f65317c3163733a3fb
The Last Supper was painted on the walls of the hall and Leonardo developed a new technique. It is often said that it is a fresco, but in reality a fresco is a painting done on a layer of newly applied plaster still wet. This technique does not allow error and touches later. As Leonardo was primarily a perfectionist, he wanted a technique that could shorten the drying process of the ink
This does not mean he was not an expert, but he wanted the drying delay to execute the work with the greatest perfection imagined. So he developed certain dyes and pigments that have been shown ineffective in relation to conservation. The fresco has been constantly attacked by the action of fungi that decompose, requiring constant maintenance and restoration. Disrespect for art is not a fact that occurs only in our days. Note that, by the need to create a passage for a next room, was opened and then closed the door just about painting, destroying forever a part of the base. A similar fact occurred with the Mona Lisa, which is a painting done on wood panel, which had the sides sawn.
Let us now turn to analyze the picture presented. We see that the figure of Christ is placed exactly in the center and if we trace two perpendicular lines, projecting the vanishing point, we have this convergence point exactly on the right eye of Christ.
https://preview.redd.it/2q63a9akz6pa1.jpg?width=640&format=pjpg&auto=webp&s=82b77c2509d79e82fc218c31cb234f3c988e6a78
Thus we have the picture, with Christ at the center position and the apostles distributed on both sides. Around Christ is formed a circle passing through the arc of the door at the back, forming a triangle with the apex up ward and the other with the apex downwards. In the book "The Da Vinci Code", Dan Brown speaks of these symbols in a simplistic way, relating them to the masculine principles, personified by the figure of Christ, and the female, formed between him and John standing right beside him.
As John's features are feminine Dan Brown claims to be Mary Magdalene, who had been his wife and mother of his daughter Sara, giving rise to the dynasty of the Merovingian, the first kings francs (?). He argues that even Jesus to be a Rabbi, could not be single, and would necessarily have to be married. This is true among the Pharisees, but if we consider Jesus as Essene it would not be a fact, because the Essenes took vows of chastity and poverty of course he could not be married. (See studies on Essenes in the Dead Sea Scrolls).
But that does not interest to the narrative of Dan Brown, because it would invalidate the book. Dan Brown is a researcher and I believe he has his knowledge, but I also believe that it is not interested because it contradicts with their commercial interest, because the truth does not sell. This symbolism is represented with two triangles with opposite vertices, is actually very deep, being present in different traditions such as Vedic and Hebrew, which presents two interlocking triangles, forming the six-pointed star.
The six-pointed star, although it is known as the Star of David or Seal of Solomon is present five thousand years ago in the Vedas This symbol contains hermetic principles, such as correspondence, the polarity, as well as the sex and this cannot be reduced simply to a phallic reference. We are not depreciating the work of Dan Brown and recognize who never spoke much about these matters. These works have never been as visited as it is today and this in itself already has its importance, but we have to put things in their right places.
We can relate the triangle with vertex upwards (upper triad=Spirit), containing the principles Will, Wisdom and Mind (Consciousness). The triangle with the apex downwards relates to the matter (unconsciousness). Thus when the two overlapping triangles results in the manifestation of life.
It is the projection of spirit into matter, as we can also see in the painting of Narcissus (below right), by Caravaggio, where he falls in love with his own image reflected in the mirror of water, going to deny its divine origin and losing in the webs of illusion of the world of things, which is transitory, local and temporal. The world of things is composed of the four elements (Fire, Air, Water and Earth).
https://preview.redd.it/3cia4wisz6pa1.jpg?width=557&format=pjpg&auto=webp&s=4b8024928bfecb087a46324137ea80e2edca43f5
The combination of the three higher attributes mathematically generates the four material elements.
Let's see. By combining the primary elements, i.e., "A", "B" and "C", produce the four elements, where "A" is associated with "B", "A" is associated with "C", "B "associates with" C "," A "is associated with" B "and" C ".
Thus we have four secondary elements. We also make an analogy with the primary colors, which are blue, yellow and red, that combined together form the four secondary colors, constituting the structure of the septenary manifestation (seven colors of the prism, seven musical notes, seven days a week seven deadly sins, etc...).
Thus, the higher will generate the ternary quaternary, with a combination of three with four, resulting in the twelve that reflect the different basic types of energy, or twelve human archetypes.
The three, four, seven and twelve numbers are sacred numbers, since summarize the constitution of the universe.
The pyramid, for example, is a splendid symbol, it is the ternary seated on a quaternary basis (I and II).
https://preview.redd.it/dx1id0ruz6pa1.jpg?width=545&format=pjpg&auto=webp&s=119fc354d756fded879d65a69a9aa453f691579f
If we look at the pyramid over its apex, we shall see the division four equal parts (III). If these parts are opened (IV) will produce 12 angles (combinatorial analysis 3 of 4).
This results in the Maltese cross, or Templar cross (V), where the center is located the eye of God, who sees everything (omniscience), precisely the right eye of Christ, who is the central vanishing point in Leonardo painting (ternary on the quaternary).
In astrology there are three primary types (come Primary Cause is the Absolute = Universal) and four secondary. The three primary types show human behavior. The secondary indicate the human temperament. Human behavior is determined by the mode of expression (Cardinal, or the one who initiates an action. The fixed stabilizes the action. The mutable amend the action). It´s is the gunas of the Vedic tradition: Rajas, Tamas and Sattva, which make up matter.
We can represent these correlations through the diagram below, where the archetypes are formed considering the kinetic and static manifestation of matter and its modulation with three forms of behavior, producing the twelve basic types of temperaments, according to the diagram:
https://preview.redd.it/4cmpcwgxz6pa1.jpg?width=571&format=pjpg&auto=webp&s=f443519d8945c6a60906232c7464e8aaab40c41f
We speak of the qualifications of Leonardo that among them he held the astrological knowledge. It is precisely this knowledge that is being revealed in his work. He had deep knowledge of archetypes, detailing its characteristics, perfectly demonstrating the zodiac with the twelve signs of the Sun (Christ) as the center of events and creation, which becomes more evident if we observe that the apostles were arranged in four groups of three.
Thus, we have four groups, linking them to the four seasons of the year with an apostle for each sign.
Each station has three months and consequently three signs, starting in the spring, which is the vernal equinox in the northern hemisphere, with the months of March, April and May, related to Aries, Taurus and Gemini. The summer, with the months of June, July and August, related to Cancer, Leo and Virgo. The autumn, with the months of September, October and November, related to Libra, Scorpio and Sagittarius and winter, including December, January and February, related to Capricorn, Aquarius and Pisces.
https://preview.redd.it/wdvzgvr007pa1.jpg?width=640&format=pjpg&auto=webp&s=1ac4ccd825092e43176e5222127031f01ceee4fd
Another way to demonstrate this is the figure we see a three-dimensional form, with the figure of Christ and the apostles to the center divided in the ecliptic (the Sun's equator).
https://preview.redd.it/wkna4mf307pa1.jpg?width=243&format=pjpg&auto=webp&s=111e3684719940bb7716d259977049919937a630
In the zodiacal wheel, we have divided the signs forming axes, where a sign has his virtuous characteristics, and the difficulties are experienced in the sign placed in opposition. This refers to the principle of polarity, which says that everything has two poles, and they are similar in nature, varying; however the degree and that these polarities can be reconcilable (The Kybalion - Hermes Trismegistus).
To overcome the difficulties represented by shadow, there to seek the virtues that which is light, located in their opposition.
In reality what must determine between the two poles is the search for balance, i.e., the central point is that the figure of Christ. It is to live the way of temperance, the middle path. The consciousness.
Associating the different disciples (nominated by Leonardo himself), we have the representation in the figure below:
https://preview.redd.it/bssqcv8607pa1.jpg?width=640&format=pjpg&auto=webp&s=75601f90d3a08f1dd18d2fe6da25ec0d1cbd5d11
Jesus opens his left hand upward, feeding those placed his left. Are the seasons of spring and summer, where there is the birth and growth. The right hand side down in an act of absorption of energy and experiences accumulated by the autumn and winter seasons, related to maturity and death. This demonstrates the zodiacal cycle of birth and death. It is noted that the same correlation is made in that the light is projected to the left and the right shade Christ. The same polar duality is also represented in the mantle of Jesus delimiting the two hemispheres.
At the head of the table, to the extreme left side of Christ, we have the figure of Simon, representing Aries. Leonardo represents in the order of left to right, since the signs, as seen from the earth moving anti-clockwise.
Aries, the sign that opens the zodiac, is the pioneering characteristics, leadership, initiative, and this is exactly the role demonstrated by Simon, sit at the head table. Aries rules the head and the head of Simon are displayed prominently. The position of Simon's ascendancy over the others. But not only is the position occupied by Simon Aries denoting this role but what the theme suggests, because everything results from something spoken by Simon, as the other apostles are commenting, arguing and watching Simon himself, it was told.
If Aries is related to the self, the personality, Libra corresponds to the other, the relationship and the satisfaction of the need of the partner.
It is ideal for Libra living relationship in an atmosphere of peace, beauty, balance and harmony. The figure of John, diametrically opposed to Simon receives and absorbs the full impact of what was spoken, causing it to assume a posture of submission and retirement. John's hands are placed in position reconciliation. The figure actually has a female face, because Libra, seeking harmony is associated with receptive condition. The garment also refers to balance, in that is divided in two colors. Libra is ruled by Venus and Aries by Mars. This is the axis of individuality, and Aries representing the personification of the psychological ego and Libra the other with whom the ego relates.
Next we have Judas Thaddaeus. It is related to the sign of Taurus. Taurus is characterized by personal values, possessions, to have. Taurus has the need to develop a solid structure, have support. In the painting we see that is the only apostle to lean on the table, put the left arm using the table as a shield. The size of the Taurus is solid, strong. Taurus rules the neck and throat and this is very evident in the painting. The attitude of Judas is prudence. He argues and accepted.
This is the value axis and power, having one side of Taurus and Scorpio on the other.
Scorpio is represented by Judas Iscariot. Scorpio relates to the values ​​of the other, the collective values​​. Judas, for he was treasurer of the group. Scorpio is the sign of the depths, transformation, regeneration or death. Ruled by Pluto or Hades, represents all that is profound and transformative. The role of Judas Iscariot, as misinterpreted by the Christian traditions, was critical to the tragic outcome of the drama that is the passion and resurrection. Judas Iscariot somehow was the most loyal of the apostles, because he did fulfill the scriptures. He took the most painful mission of the group fulfilling the order to terminate the Sinedrion following the proper order of Jesus, when he said, "Judas, would you betray the Son of Man with a kiss? (Luke 22:48).
Actually Scorpio is the dynamo of the Zodiac, because it determines the transformation processes necessary for evolution of life. Judas Iscariot in the painting is presented as a spectator, watching the unfolding drama, examining the course of events. These are characteristics of Scorpio. Deeply analyzes, traces the strategies and act at the right time, accurately.
Next we have Matthew, related to Gemini whose ruler is Mercury. Gemini is related to the whole mental process and communication. The mental concrete, the process of accumulation of cognitive and applied knowledge to material reality. The natives of Gemini are slender and agile, jovial, looking curious and considering all possible variables facing situations. They can be considered, sometimes contradictory, unstable, and fickle. Matthew demonstrates some of these features.
He is communicating with Simon, looking at him, but arguing with hands and arms as if he had considering all aspects of what was said. May also appear an ambiguity between what was said and what the group thinks. As Gemini is related to communication and speech relates anatomically to the shoulders, arms and hands and this is what we also noted the figure of Matthew, who is also considered the reporter of Christ, like Mercury (Hermes), the messenger of Jupiter (Zeus).
We have here the axis of knowledge and wisdom. Peter opposes Matthew, representing Sagittarius. It is the sign associated with religion.
Sagittarius governs the higher subjects, abstract knowledge and spontaneously puts into the unknown. Sometimes it is brutish and can express themselves with excessive frankness. This corresponds to the spirit of Peter, who founded the Church, or the Christian religion, with Paul (Saulo de Tarsus).
The faith when taken to its ultimate consequences may be blind and in his defense all can be allowed. Peter's hand is holding a knife to defend his own ideals, not in a threatening attitude to John, by some want to believe, even argued by Dan Brown. Sagittarius, the centaur wields the bow with the arrow to be thrown. Anatomically Sagittarius governs the hips and this is evident in the painting. The right hand rests on it. The disposition of the body of Peter remembers the design of the symbol of Sagittarius.
In the sequel we have Philip, associated to Cancer.
Here we come to the bottom of the Zodiac, or Imum Coeli (Latin for "bottom of the sky"), is the axial point of the unconscious corresponding to all devotional manifestation, the maternal feeling, the origins and traditions. This relates to home and family and Philip embodies this archetype.
With distinctly feminine face, Philip takes his two hands to his chest, as if calling everyone as children to be reconciled. Indeed, precisely Cancer governs the breasts, stomach and uterus. Hands with arms also form a figure that resembles the claws of the crab is the cancer itself.
This is the time axis, with the past and destiny. The past is associated to cancer, the mother, and the future (Capricorn) with father. So Capricorn governs the destination, i.e., what we seek as a career, as the goal of life and social role as we seek and desire recognition. It concerns the authority.
So, Andrew as Capricorn is clearly a Capricorn attitude. Capricorn is cautious and practical and could be cold and pessimistic. As Philip says "come to me," Andrew seems to say "depart from me", because to assume the responsibilities is to calculate and plan what should be done.
Capricorn corresponds anatomically to the entire bone structure, knees, skin. In painting Andrew is the one who has hands with bony fingers, demonstrating the bone structure. Alongside Philip, we see James the Less, related to Lion.
Leo is sovereign. Charismatic, flashy, creative, dramatic, seeks recognition through the exhibition. It is ruled by the Sun and radiates its light.
Leo governs the heart that is analogous to body sun. These characteristics are clearly incorporated to James Minor. Surely he is the most beautiful scenic figure painting. James to take the attitude of open arms, exposing the light, standing next to Christ himself.
Demonstrates an open chest, the heart of generosity, a typically leonine behavior, which sometimes comes to be naïve and centered on vanity and self-centeredness.
This is the axis of the power of creation. If Leo is the maintenance of creation, Aquarius is change and renewal which is also creation. Leo governs the power of the king, the monarch. Aquariums are the collective power, the group, society. This axis is that occur the struggle for power.
Aquarius, with Uranus the ruler promotes all sorts of abrupt changes, meaning always drastic changes. Often in the name of innovation is deposed monarch for the establishment of a new regime, to then become similar with the previous model. It is what is observed with the Aquarian revolutions like the French Revolution, with the deposition of Louis XVI. Napoleon was later crowned as emperor (Leo). Recently, we have the Cuban Revolution, with the deposition of Dictator Fulgencio Batista and Fidel ruling as King-Dictator.
Aquarius is associated in this way, the actions of libertarian, to rebellion, radicalism because it is engaged with human values, such as progressive values, but it is impersonal.
Analyzing the figure of James the Greater, we see that it does not appear in the foreground. He does not expose himself alone, but through the group, through diplomacy and see: Aquarius is the sign of friendship and we see James hugging Andrew and Peter, demonstrating that the strength comes from the group and not on individual attitudes.
Finally, we have Thomas, representing the Virgin.
The Virgo is related to the practicality, analysis and criticism. It also ruled by Mercury, but here the mental focuses on utilitarian and practical application to be given to all things. For that reason they questioned him, details and discriminate. Virgos is in extreme need to feel useful and provide their service, but to do so he needs to understand the cause of things. Within these characteristics we see the figure of Thomas. Thomas needs to see to believe.
Thomas in his act of inquisitor asks to Christ himself, in that puts her right in front of Jesus forefinger. As Virgo tends toward shyness and humility, Thomas is also placed in a position away from the table.
This is the axis of the serve, having Virgin correspond to service pragmatic and Pisces, the humanist service, sometimes not very clear and perceptible, which may lead Pisces to live in a state of unreality.
Pisces is associated with the dreamer inspiration and understanding. Are compassionate, emotional, intuitive and romantic, but for this state of contemplation, if not well channeled, can lead to evasion and fanciful attitudes, having difficulty perceiving reality.
Bartholomew the Apostle is which closes the zodiacal circle. He is on the other side of the table. It clearly demonstrates the Piscean characteristics. It seems that his vision is directed to a point that goes beyond the environment portrayed, a point diffuse and may not realize exactly what is going on. Does not speak, only observes, contemplates and accepts. Pisces rules the feet are just his feet, interlaced, which are illuminated under the table. Pisces has great intuitive potential, but needs to know how he can transform his nature, his sense of serving humanity in a more practical and constructive way.
Thus we come complete cycle of the zodiac, sounding clear that the message displayed in this painting, as in other works of genius. It conveys much more than seemingly suggests.
True knowledge was hidden in encrypted form by the need to preserve it, protecting it from the misunderstanding of those who thought they possessed the truth. What is hidden, veiled, does not mean it is not to be seen. It is only unveiled to those with eyes to see. Leonardo leaves us that genuine arcane wisdom was, is and will be the knowledge which guides humanity toward enlightenment through awareness.
Astrology, by the psychological approach is a process that allows us to analyze, understanding paradoxes, our conflicts, our shadow, our projections, and perhaps, through self-knowledge, doing the reintegration of contents for consciousness, so we can promote the process of transforming into true human, and better integrated with the sacred.
The path continues to be followed.
Astrology shall be understood in this view, showing that the splendor of diversity means that we may above all be tolerant and compassionate, understand the nature of the differences and accept them as a manifestation of the same source of life.

I ordered something from Patagonia, and it left Reno about two weeks ago. It was supposed to be delivered last week in New York, but apparently, it decided to take a quick vacation in Guam and now Hawaii! Maybe it'll go to the American Samoa next. I just hope it's fully rested and tanned before it decides to finally come home.
https://preview.redd.it/xydnyi1ar5pa1.png?width=824&format=png&auto=webp&s=2fa64758b043c317f0b5312c052b7e7b0eb849af

TL;DR: Citadel doesn't just have a major outsized influence in the US stock market via its market making firm/hedge fund, but also a major indirect influence via Headlands (biggest municipal bond trading firm made of 3 ex-Citadel employees), and direct influence on sovereign debt (can decide when sovereign credit default swaps pay out) with its seat on the CDDC (Credit Derivatives Determinations Committee).
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https://preview.redd.it/ltb4s44yl5pa1.png?width=640&format=png&auto=webp&s=68fc21cf2ea5bf9f1fcdf49738d7a36e77869ff6
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Hi y’all. Been some while since have been able to post regularly here, so I’m returning alongside my recent post on FHLB with a bit of a “DD". Partial rush job, so all errors are mine and mine alone (obviously)
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0. Sphere of Influence

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Over the past 84 years (/s), you lovely apes at Superstonk have been able to fish out many of the finer points of corruption crystallized into pure, unadulterated financial terrorism and financial terrorist-level crime undertaken by Steve Cohen (Point 72), Jeff Yass (Susquehanna), Doug Cifu & Vincent Viola (Virtu), as well as Wolverine Trading, Jane Street, TwoSigma, and more. But, of course, much of it has centered on our Mayo-artist-in-residence and his firm, that of none other but Ken Griffin and Citadel.
One of the biggest finds that has come to light has been the complete and utter bullshit of having (1) a hedge fund and (2) owning a market making firm that most DEFINITELY does not use that non-public information to its benefit? I mean, it would be easy for us to check except that we need 5 swipes to even access that level of inner sanctum at Citadel, which–per DLauer’s words–is more than the fucking Pentagon.
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https://preview.redd.it/4fu0w15el5pa1.png?width=606&format=png&auto=webp&s=1c47c25197fb9f5543fcad01a4dc0e30b48ebeac
But despite Ken Griffin’s reach into every aspect of the most influential stock market in the world, that is not his ONLY level of his sphere of influence. For we, dear apes, can step back and revisit this idea that Citadel’s power duo (its market making firm and hedge fund) is more like a single part of a Big 3.

1. Meet the Big 3

Citadel’s sphere of influence includes not JUST (1) the stock market business, but directly or indirectly, the (2) U.S. municipal and bond markets, plus (3) the sovereign debt/sovereign debt credit default swap markets.
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Yes, you heard that right. Citadel not only has some sufficient level of influence to tank your favorite stock–and, in turn–retirement fund, but can also effectively drive your city into the fucking ground, or even your country.
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I’ve written about each of these at length, and wanted to revisit some pieces in the wake of our recent dick twitchings of the coming financial crash.
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2. Meet the Municipal Bond Market

Citadel has an indirect grip tickling the taint of the municipal bond market, believe it or not. I first wrote about the municipal bond market here (“Headlands: How ex-Mayo mercenaries copy pasted Citadel’s model in the muni bond market”): https://www.reddit.com/Superstonk/comments/sy6ubj/headlands_how_exmayo_mercenaries_copy_pasted/. For those unfamiliar with municipal bonds, I’ll reiterate what they are and why many push them as a safe investment in most times (with some caution being thrown intermittently due to the collapse of regional banks like FRC and Silicon Valley Bank):
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https://preview.redd.it/e8bqxn3wk5pa1.png?width=1326&format=png&auto=webp&s=cc1e3c44bced207ca23105ae48110eb7298441f1
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“Municipal bonds (or "munis" for short) help towns/cities raise money for projects like building schools, parks, and fixing highways. Many retail investors--admittedly, on the wealthier side--invest in munis for tax incentives like not paying federal tax on bond returns. In certain cases, certain muni buys also mean no state taxes are paid…Just like what had happened to stocks, the old-school market for buying and selling muni bonds is going electronic. This is mainly done through an ATS, or "alternative trading system" known also as a dark pool. This speeds up the process of buying and selling munis, making it closer to a "house auction".

In the wake of the SVB (Silicon Valley Bank), there have already been rumblings of its effect on the municipal bond market (Bloomberg “Bank Woes Create Bond Bargain in Obscure Corner of Muni Market”):
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“Investor concerns over the crises within the financial industry are bleeding into a corner of the $4 trillion municipal-bond market where major investment banks guarantee energy for public utilities….
Spreads have widened on so-called prepaid gas bonds, which government agencies use to purchase long-term supplies of natural gas. Large institutional banks act as facilitators of the transactions, guaranteeing the supply and providing investors tax-exempt exposure to bank credit….

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3. San Jose, Revisited

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That part about “large institutional banks” acting as facilitators of the transactions is what we saw in part in this post by [redacted].
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https://preview.redd.it/5pp1500xi5pa1.png?width=1128&format=png&auto=webp&s=b4f48ce1f6d11fff15d44cc47b2174882e34eb03
A commenter spoke about this, and how it wasn’t Wells Fargo in doo doo but the city of San Jose.
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“I believe in theses cases it’s not Wells Fargo that has a problem but the city of San José.

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„Because presentments are currently processed automatically at DTC, IPAs have the option to refuse to pay (“RTP”) for maturing MMI Obligations to protect against the possibility that an IPA may not be able to fund settlement because it has not received funds from the relevant issuer. „ -> Wells Fargo didn’t receive the money from San José city.
Wells Fargo acts as an issuing agent for the city - the city transfers assets to the trustee and the trustee securitizes the assets and offers the money market securities to investors. The assets generate money (for example a sports arena that was build) and that money goes through the city of San José to the trustee who is managed by Wells Fargo.

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https://preview.redd.it/nc8lbgwsk5pa1.png?width=1280&format=png&auto=webp&s=35e2c386534eb904608db679a9954affe0338c9a

Wells Fargo has no liability or influence on the money that comes from the city and is distributed to the investors. If the money doesn’t come or isn’t sufficient, the assets are sold or liquidated and used to pay investors.
Anyway: Wells Fargo acts on behalf of the city and is not responsible they just handle securitization but don’t have any influence on payments or failure/default.”

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In this case, we might be seeing one of the first of MANY issues of cities up shit’s creek over this.
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4. The Municipal Bond Market Time Bomb

The size of the municipal market is A SHIT TON BIGGER than the corporate bond market, which will already show even more signs of being turbo fucked due to borrowing at low interest rates for years. Here’s the size of the municipal bond market for scale, sans banana:
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https://preview.redd.it/9pcmm2c9j5pa1.png?width=760&format=png&auto=webp&s=869c0863c6ecc788c29d6dbe37da76521a700d1e
Unfortunately, just like retirement funds, many muni investors are “buy and hold”: they buy a muni expecting a safe, long-term return with no federal income tax and then, welp, shit hits the fan. The market is heavily illiquid too, meaning if shit needs to move, then you might be fucked. Only about 1% of municipal securities trade any given day, in auctions that often take HOURS:
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“Now, the primary method of trading on this doesn't look like the New York Stock Exchange or like Nasdaq. It looks like an auction. It takes about 4 hours. An auction is initiated. Participants who come in can bid on this, and it is a competitive auction that yields a very good price.”

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Now to my understanding you can’t short these bonds, but the long time frame means its hard to sell these illiquid assets. Not only that, THERE IS NO NATIONAL NBBO (National Best Bid Offer)...you’re flying blind while this shit happens.
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Now if you’re wondering what magnanimous souls are helping municipal bonds be sold or fixed in a timely manner for cities like San Jose, well have I got news for you.
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5. Meet Headlands, U.S. Municipal/Bond Market Making Firm…Run by 3 Ex-Citadel Employees

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Two months after the sneeze (March 2021), TD Ameritrade bought municipal bond market maker Headlands. Yes, that’s right…an electronic market maker just like Citadel, this time for bonds for cities and towns vs. stocks. Now let’s check the fine fellows that run this:
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• Jason Lehman: Citadel Investment Group, began/ran their global options market making, dipped his dick in Japanese convertible bonds, and managed “Private Investments”
• Neil Fitzpatrick: Citadel Execution Services COO (Citadel Investment affiliate), ran equities/options. Ex-Knight Capital Group, did Citadel’s OTC and equity shit. Direct Edge board of directors.
• Matthew Andresen, co-CEO Citadel Derivatives (Citadel Investment affiliate). Previously served on board of directors/committees in the past from International Securities Exchange, Direct Edge, CFTC, Lava Trading (Citi’s electronic trading unit that made LavaFlow)

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Of note, Matthew Andresen founded Island, one of the 1st dark pools EVER and 2nd only to “Instinet” (who also got an even bigger wave of funds during the sneeze, info courtesy of Ringing Bells) and was featured heavily in the Scott Patterson book “Dark Pools”.
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Ol Matty told us that Headlands is completely automated, and where some muni traders make 75-100 muni bond sales a day (sometimes over the phone), Headlands currently bids on 10,000+ bond auctions a day with its algo. Matty Boi even said if that number ever 10x’d “we wouldn’t notice.” Even more sus, Headlands has been growing its own “holdings” of muni bonds on its books.
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6. In Bros We Trust

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So remember, this branch of 3 ex-Citadel bros is front and center to the issues already rearing their head. In my previous post, these were just SOME of the already teetering municipal bond issues:
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• Some might have history befall them again: last time the market crashed, Michael Burry’s California went spiraling down to BBB rated for many municipal bonds. California is a special muni case where it generally does well when times are good; much of their revenue is tied to personal income taxes. But when shit goes tits up, it goes tits up.
• Major projects have tons of debt piling up due to the [March 2020 crash] New Jersey built a giant ass mall–I kid you not--called “The American Dream” over 10+ years that has no sales receipts to cover it in part due to the dropoff in retail buying. As of 2 weeks ago, the mall only had like less than $1000 in the bank to pay off muni debt (“Developer Triple Five Group also sold US$800 million of muni-debt backed by payments they agreed to make to bondholders instead of paying property taxes”)...

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• NYC’s MTA has been getting reamed by both ends. One of the biggest shitstains on its books is that it took out a shit ton of municipal debt and opted to sell $3 billion in bonds to the Fed’s muni lending program to stay afloat

And this issues extends way beyond the U.S.' 50 states...it even affects our territories too.
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7. Hurricane

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What began this rabbit hole was the one and only welp 0 0 7, who caught wind of some fuckery in the municipal bond market:
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In the post, he mentioned how "American Thinker" 's Joseph Lawler mentioned the SEC has been giving fucking STIFF Heismans nonstop (or per [redacted] the ol' Dustin Martin "don't argues" for you Aussie apes!) on FOIA requests (Freedom of Information Act) related to the municipal bond default in Puerto Rico, the BIGGEST bond default in America's history EVER.
It went all the way the way up to a federal court in California where the SEC said "we don't know what you're talking about" when others found they have fucking 2800 pages of documents on it and nearly 270,000(!) emails referencing it referencing a billion dollar Ponzi scheme on the level of fucking Bernie Madoff.
Big banks (Citi, Wells Fargo, BoFa) had their scheme collapse in 2016, potentially bribed senators to kill investigations into it by the DOJ and now the SEC is caught in yet ANOTHER 2 lawsuits saying they fucking aided and abetted this shit.

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You see, because this level of municipal bond includes fuckery includes not just cities and towns, but U.S. TERRITORIES. In my post about Hurricane Maria’s effect on Puerto Rico, I talked about how UBS and others loaded up Puerto Rico with debt because of what’s called a “Treasury Put” guarantee that was even called “an exit strategy” for banks (“They describe the "treasury put" as "...the implicit guarantee -- as perceived by investors -- from a government agency to provide support in the event of financial distress by the issuer of Puerto Rican bonds."”).
Puerto Rico’s default was the largest in US history, EVER. And all this the same while guess who was holding the bag? Let’s see what W S O P tells us:
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“The reality is that a large percentage of Puerto Rico’s debt is held in tax-free municipal bonds and municipal bond mutual funds, owned not by Wall Street banks or tycoons, but by mom and pop investors seeking tax-free income.”

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So once again, whether its retirement funds or municipal bonds, its retail caught holding the bag. And this hasn't changed for years. We’ve seen similar fuckery with bonds for NYC in the 70s, and more recently in the 00s for Detroit.
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One astute wrinkle by the name of [redacted] posted this on that original post trying to dig into how it could all be related:
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…how the MMLF fund that expanded money/credit to towns/cities started including commercial paper…but also leveraged near the 15 to 1 ratio perhaps under the Net Capital Requirement limit:
[redacted said]: "$500B at 14:1 Leverage? If I'm making the right connection between the flavor of asset, that's just under the 15x Net Capital Requirement limit. Is this all the Fed had/could afford? Or is this all they needed at the time?

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8. Don't Bet Against America...Says the Banks and Hedge Funds That Already Did

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Commercial Paper? Municipals related? Now where does that sound familiar? Ah, yes…the city of San Jose got its call-out by Wells Fargo over COMMERCIAL PAPER. This comes as the push for ppl into municipal bond markets continues, trying to sell it as a “safe haven” to retail investors. Vanguard just recently launched its first ETF–surprise, its first US-listed ETF in 2 years– for municipal bonds (selling point: “hey everyone it’s tax-exempt! Give us money plz!”) for example:
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Many of us can see all of it for what it is. Bullshit. In the wake of the SVB collapse, there is still a strong push that these regional banks–many of which lend to municipalities–will be fine. This “safe haven” theory continues, even as articles try to have them appeal abroad (such as a few days ago, “ ESG Factors of Munis May Attract Non-US Investors” “https://www.marketsmedia.com/esg-factors-of-munis-may-attract-non-us-investors/”)
Even further, one last find is that . I mean it’s not like credit default swaps can be taken on cities and towns in theory right?
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FWIW also I found an interesting research paper talking about hedge funds buying up credit default swaps, and how they could potentially bankrupt towns/municipalities through some of these moves if they wanted: https://openyls.law.yale.edu/bitstream/handle/20.500.13051/8264/MingJieWangCreditDefaultS.pdf?sequence=2
"Another potential concern is that even in a market that is generally liquid, the market for individual single-name [Credit default swap]s may be quite small, which could allow a single bad actor (a hedge fund, for example) to force a municipality into default..."

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****
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This is all while we have 3 ex-Citadel heads in charge of just how the municipal bond market moves, like that of San Jose.
So is this where Citadel’s reach stops? Clearly, no. It doesn’t stop at the US border, just like how Mayo Force One doesn’t.

10. ELI5: What’s a Soverign Credit Default Swap?

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That’s right, mofos. You read that sub-header right. In case you’re wondering, not only can you take out credit default swaps on a failing Swiss bank like CS, but you can do so ON ENTIRE FUCKING COUNTRIES.
In one of my old posts “Sovereign Debts & Ransom Notes: Pt. 1 The Importance of Being Non-Linearly Destabilized through Sovereign Credit Default Swaps”
(“https://www.reddit.com/Superstonk/comments/t35rdi/sovereign_debts_ransom_notes_pt_1_the_importance/”), I talked a little more about the insanity of these things even existing.
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Sovereign credit default swaps exist. Long story short: sovereign credit default swaps are insurance policies that if a country defaults (usually on its debt)then you get paid! Like many other shit that we’ve seen in the GME saga, they are a form of financial derivative (a bet that something goes up, a bet that something goes down) on an underlying (the thing you’re betting on)....They can be used to insure government debt for a country in case that country is unable to pay its debt, for example. However, just like other instruments, naked sovereign credit default swaps also exist.

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Naked sovereign credit default swaps are used to bet that a country or a country's debt will fail without you owning that country's debt. In part, they were destabilising during the Euro-crisis immediately after the 2008 financial crash. Greece was one of the countries that got naked shorted in 2008. In fact, the country got shorted so bad they were worried about fucking SHORT SQUEEZES on Greek debt and the sovereign CDSs!
In 2012, the EU put a ban on naked sovereign credit default swaps. However, workarounds include the fact that a country can effectively change its mind on it within 24 hours and all the regulatory agency can do is offer an opinion.

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There were a tons of perhaps “we will see soon” if relevant additional points in that old research, including:
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• The VIX affects sovereign credit default swaps A LOT

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• The Big Bang Protocol: ISDA helped formulate a set of rules that decides when a country “defaults”
• You can “short” a sovereign bond if you find a locate (sound familiar?: “Short sales of shares and short sales of sovereign debt will be permitted only where the seller has “located” the share or debt instrument prior to entering into the agreement and has a “reasonable expectation” of being able to borrow the shares.”)

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Crazy shit. So you might say, now this post is meant to be about Citadel’s sphere of influence you might say? “Where does Citadel fit into all this? ”

11. Meet the CDDC (Credit Derivatives Determination Committee)...Where Citadel Sit and Helps Decide Which Countries Default on their Debt

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One of the biggest GFC 2008 scenarios of sovereign credit default swaps being misused was against Greece. Afterwards, one of its biggest cases of misuse was by Elliot Management (ran by Paul Singer) who was using their position on the Credit Derivatives Determination Committee, or CDDC, to help decide when their sovereign credit default swaps against Argentina would pay out.
Wait, Eliot Management doesn’t sound big enough. Who else is on this committee?
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Oh wait, so Citadel is ALSO on this committee? Alongside our favorite fucksticks like Chase, Goldman, Deutsche, and BNP?
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It’s not lost on me with seeing now that Credit Suisse has been sucked up into UBS, maybe its position on the CDDC has been absorbed further by UBS. Back then, I wrote about the fact is we know next to nothing about the sovereign credit default swaps that might be opened up against countries (be it Russia, Sri Lanka, or otherwise):
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Here's one such example of a swap dealer: Swiss financial terrorist aficionados UBS AG, who registered to be a swaps dealer with the US at the end of 2012. (UBS had also been a member of the CDDC through the Greek crisis in early 2012, alongside Citadel. In Mar. 2012, they were also one of the members pressing to ask whether Greece had defaulted already.)
UBS AG registered as a swap dealer in the US at the end of 2012 enabling the continuation of swaps business with US persons. Regulations issued by the Commodity Futures Trading Commission (CFTC) impose substantial new requirements on registered swap dealers for clearing, trade execution, transaction reporting, recordkeeping, risk management and business conduct.
If UBS AG decides to make a market on sovereign credit default swaps like Russia, then we might also have no idea who is on the other side of the trade. This also goes for many of the other swap dealers who (surprise surprise) also sit on the CDDC board and can determine just when these sovereign credit default swaps pay out.

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Not only that, but the CDDC even can say when CORPORATE BONDS even shit the bed: late last year, they were the ones who were deciding to let everyone know whether Sunac (an Evergrande-relate company) went tits up.

12. We Say When

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For months, there has been talk of a looming debt crisis (alongside all the other ones) in the sovereign debt world.
And shit continues to hit the proverbial fan. Apart from Russia, Sri Lanka and others, emerging markets like Ghana and Zambia are beginning to feel the hits from their sovereign debt (oftentimes, trying to restructure it with creditors like China).
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Even further, now that Credit Suisse has gone under. We may have another thing to worry about: what banks and prime brokers are housing these opaque sovereign debt structures, loans, and swaps? Even worse, what happens when they go under? Roll that less than beautiful bean footage:
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https://www.livemint.com/news/world/before-collapse-credit-suisse-quietly-conquered-an-obscure-debt-market-11679395660932.html
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“Before collapse, Credit Suisse quietly conquered an obscure debt market
Before its rescue by Swiss rival UBS, Credit Suisse had quietly become a major player in an obscure market that purports to help developing countries ease their debt burdens in exchange for protecting nature. Known as debt-for-nature swaps, the complex financial instruments help governments restructure their debt to raise money that can be used to fund conservation efforts.

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Credit Suisse was the sole structurer and arranger of the world’s largest debt-for-nature swap, a $364 million deal that it orchestrated in 2021 along with The Nature Conservancy, a charity, for Belize. Last year, it sealed another $150 million deal for Barbados. Credit Suisse has in recent years helped revive interest in the instruments and for the first time opened them up to institutional capital. The bank raised money for Belize and Barbados from pension funds including Sweden’s Alecta and Nuveen LLC, a unit of the US’s TIAA, by issuing so-called blue bonds tied to the deals.

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he convoluted setup has drawn criticism from sovereign debt experts for its high cost and lack of transparency. And the opaque terms of the Belize and Barbados deals — the first of their kind — mean outside analysts will struggle to assess precisely what comes next.

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A lot of poorer, especially emerging market countries were already in dire straits. Now as opaque deals meant to help these countries might not come to light (are these some of the Level 3 assets that UBS was talking about?), we can ask ourselves wtf will happen when the same banks looking to save their own ass while holding these sovereign, are the same fuckers that sit on the same board that can decide when they are worthless (while I’m sure being positioned net short).
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All in all, these banks and holders of sovereign debt credit default swaps, who decide when a country goes boom, are sitting arm in arm alongside Citadel, who themselves potentially hover their greasy mayo-covered finger over the button that decides just when and how the US stock market will eventually implode.
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13. Everything Everywhere All at Once

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To recap, we then have Citadel with (1) the biggest market maker and arguably one of the most influential hedge fund able to decide which stocks rise and which fall as the US stock market teeters on the brink of collapse…
…with having (2) three of its ex-employees in charge of (not even counting other Citadel employees working there) operating at Headlands ready to help position themselves when the municipal bond market gets nuked, whether as a continued result of regional bank failure or in spite of it…
…while (3) sitting on the board that determines when ENTIRE COUNTRIES FAIL, in such a way that their hedge fund and associated pals can be ready to short and profit off failing nations that they and their fuckstick friends help cause.
Did I miss anything? Because remember, Citadel is not just Citadel, the market-maker that we all love to hate; Citadel’s sphere of influence via the Big 3 means the grip that it holds over the US and world economy is even greater than we think…and as such, far far more dangerous.

Since the beginning of the 20th century international trade has been a major driver of China's GDP growth. The liberalization of trade associated with free trade zones is now supported by the development of cross border ecommerce and online retailers business. There are some famous examples of Western online retail sites such as Amazon. China, however, is now a leading country in the field of online shopping development.
Today we have prepared a detailed article for you with an overview of the TOP 9 popular and working cross-border ecommerce online marketplaces in China for remote business. In this article, you will learn why cross-border ecommerce is one of the most convenient ways for global brands from other countries to do business in the world's second largest economy using the potential of today's largest ecommerce market.
Author: Alexander Sabantsev, China Digital Marketing Agency
https://preview.redd.it/wcvrcwo2f5pa1.png?width=861&format=png&auto=webp&s=696bf2aa1ffad51d19558471ea2c748b5d775d8b
The benefits of working with Chinese customers through cross border e-commerce are a driver for any Chinese company to increase revenue, as leading e-commerce platforms and online shopping help to improve the connection between Chinese sellers and Chinese shoppers. Chinese shoppers are mostly online shoppers, as the average Chinese spends more than 5 hours a day on mobile services. Modern Chinese consumers consider online retail as the most convenient way to easily select goods from both Chinese businesses and international sellers, who in turn are interested in online sales as a way to reduce costs and benefit from the flash sales effect.
Nowadays, the cross-border Chinese ecommerce system allows foreign companies to conduct business activities through a global supply chain and enter China's complex market without having to establish a Chinese legal entity, open an account in a Chinese bank, and create a very expensive operational infrastructure such as opening an office, a warehouse, hiring employees, etc. In order to attract as many foreign brands as possible, most of China's major marketplaces, interested in increasing the number of third party sellers, have launched cross-border trading sections on their platforms in recent years.

Tmall Global

Founded in 2014, Tmall Global is a leading cross border China online marketplace and one of the fastest growing ecommerce platforms with a large market share among other online marketplaces in China which are engaged in international trade. This China marketplace is a special online platform for trading imported goods of the flagship Chinese online marketplace – Tmall owned by Alibaba Group. 800 million people are active Tmall users, and one in eight of them shop on Tmall Global. About 30% of the more than 100 million audience belong to Generation Z, the most active group of Chinese consumers on China market.
On the other hand, Tmall Global sells 35 000 international brands from over 90 countries through its online marketplace market. For 80% of them, Jack Ma's online marketplace has become the first sales channel in the Chinese market with one of the highest transaction volumes.
Such popularity of this China marketplace is explained by the fact that Tmall has never had a clear specialization in the sale of goods related to a very narrow product niche. As a result, Tmall Global generally attracts a wide variety of shoppers with a wide variety of needs. However, unlike Taobao mall which operates on the consumer-to-consumer model, Tmall is not an online marketplace for small businesses. Entry requirements are high for both domestic companies and international merchants. Chinese online marketplaces Tmall and Tmall Global are more attractive for global brands specializing in manufacturing high quality products, the probability of buying counterfeit products on one of the largest chain store in China is minimal. We should note that manufacturers of beauty and health products and light-weight snacks with medium and high margins should pay special attention to this platform.
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Home page (left), product card (center) and Tmall Global online store page (right)

Kaola

Kaola is another leading Chinese marketplace and is one of the largest online marketplaces engaged in cross-border ecommerce. The Kaola platform attracts over 30 million users with a 25% market share of all cross-border Chinese marketplaces trade transactions in China. The name of the Chinese marketplace (consonant with the word "koala") suggests that it was originally focused exclusively on Australian brands. But a little later, the scope of the Chinese online marketplace expanded to include the sale of imported goods from all over the world.
However, unlike Tmall and some other Chinese marketplaces, Kaola is positioned as a slightly more "prestigious" China online marketplace for the Chinese middle class whose representatives often go to the platform for shopping. The loyalty of this demanding group of consumers is ensured by a strict system of product selection and quality control. The online marketplace has even developed its own system that helps shoppers track the customs history of goods using QR codes. Thanks to this, users have no doubts about the authenticity of the goods sold. As a result, the brand's presence on Kaola increases its appeal in China.
The main product categories on the Chinese marketplace are infant formula and other children's products, snacks, health foods, cosmetics, apparel, accessories and home appliances.
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Home page (left), product card (center) and online store page (right)

J.D. Worldwide

JD Worldwide, the import section of another popular third party marketplace JD.com, is seen as an alternative to the top online marketplaces such as Tmall Global for exporters looking to generate revenue from cross-border trade.
JD has become a famous China marketplace for having the most developed system of its own warehouses and delivery of goods. The company is also trying to maintain its brand by working with foreign merchants. JD Worldwide has partnered with global (DHL) and regional (Australia Post and Yamato) logistics leaders. In addition, the Chinese online marketplace has 32 warehouses for cross-border trade. In January 2022, JD announced a partnership with western e-commerce giant Shopify. This allowed Shopify sellers to enter the Chinese market through JD with little to no effort.
As with Tmall, almost every conceivable category of B2C products is sold on the JD platform. However, manufacturers of goods for automobiles, home appliances and electronics should pay special attention to JD Worldwide. The majority of Chinese consumers look for such goods on JD, expecting the high quality approach and effective after sales services. Today, it is difficult to consider JD as one of the pure play marketplaces because its scope is quite broad.
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JD Worldwide home page (left), promotional offers section (center) and product card (right)

Duoduo International

The Pinduoduo marketplace (PDD) became a major Chinese ecommerce sensation in the second half of the 2010s due to two reasons. First, unlike other popular Chinese online marketplaces, Pinduoduo is a group shopping system that allows users to buy together at very deep discounts. The second is its focus on consumers from China's affluent hinterland. But it has also become a source of vulnerability in the e-commerce platform's business model. Although Pinduoduo's active users are on par with the market leader Tmall, the total sales of goods on the site are significantly lower than those on Alibaba's marketplace and some other Chinese online marketplaces.
In order to somehow solve this problem, Pinduoduo launched its own cross-border section - Duoduo International in 2019. As a newcomer in this business, PDD started to attract foreign brands with favorable conditions for entering the Chinese marketplace. Unlike other marketplaces, the owners of online stores on Duoduo International do not have to pay an annual service fee, and the registration deposit and order commission are noticeably lower than those of competitors.
However, cross-border from PDD has a significant drawback – the marketplace does not have its own warehouses and logistics solutions, so sellers have to deal with these issues themselves.
Pinduoduo is actively developing the trade of foreign cosmetics and perfumes. Taking into account the main audience of the site, we can recommend Duoduo International to manufacturers of conspicuous consumption products.
Pinduoduo home page (left), product card (center) and online store page (right)

Douyin Cross Border

Douyin, the Chinese twin brother of TikTok, has become a symbol of the convergence of social media and online retail in China. Douyin has many of the elements needed to succeed in e-commerce. On the one hand, it has the most engaging content formats – short videos watched by 900 million Chinese on various platforms, and live broadcasts, which became one of the main profit-making tools in Chinese online commerce in the 2010s. On the other hand, there are more than 600 million active users and an army of influencers who have earned the trust of their subscribers.
Therefore, in 2018, Douyin entered the e-commerce market, initially by actively collaborating with Alibaba marketplaces. Two years later, Douyin broke off its partnership with Tmall and built its own infrastructure to provide full-cycle in-app trading. And in 2021, it began to attract foreign brands for cross-border trade.
On the whole, cross-border trading on Douyin is still in the early stages of development, which allows even small-brand product sellers to carve out a significant niche on the platform. However, when choosing which products to display and how to promote them, it is very important to remember that Douyin is the territory of wealthy Gen Z consumers.
Video (left), product search (center) and online store page (right) on Douyin

Kuaishou Cross Border

Kuaishou, with its 400 million viewers, is often metaphorically called "TikTok for the Chinese village". The majority of its users are young residents of provincial cities who prefer to watch short videos about people similar to themselves, rather than about the daily lives of rich KOLs.
Although Kuaishou is still playing catch-up with Douyin, the social network began to engage in e-commerce much earlier than its main competitor. As a result, about 20% of the company's revenue now comes from e-commerce (while Douyin still relies mainly on advertising revenue).
But at the same time, like Douyin, Kuaishou only announced the start of its cross-border business last year. Therefore, this part of Kuaishou's business is still in its infancy, which may be even more beneficial for exporters - the platform will offer more favorable cooperation terms and additional services at this stage. However, it is not so easy to get on Kuaishou now - the site only accepts manufacturers of cosmetics, food, watches and luxury goods, and then only by invitation from Kuaishou itself.
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Video (left), online store page (center) and product card (right) on Kuaishou

VIP International

VIP.com is one of the oldest Chinese marketplaces, as well as the world's largest flash-sale marketplace (the main method of sales on it is discount offers that are valid for no more than 24 hours). The products that are sold on this Chinese marketplace are mainly related to the fashion industry – clothes, shoes, cosmetics, etc.
While VIP.com is no match for the largest marketplaces in China's overall e-commerce market, its cross-border division, VIP International, is among the market leaders, accounting for approximately 10% of China's cross-border B2C commerce.
Buying popular brands at low prices is what its users come to the platform for. Therefore, unless you are a world famous brand, VIP.com is unlikely to be your first sales channel in China.
VIP.com main page (left), product card (center) and online store page (right)

Little Red Book Cross-Border

If Douyin and Kuaishou are Chinese versions of TikTok, then Little Red Book (or simply RED) can be loosely described as the local Instagram. On this platform, ordinary users and influencers talk about their lifestyles and write reviews on the products they use (mostly these are clothes, cosmetics, skin care products). Other users can purchase the products shown in the photos with just a few clicks. This can be done both in stores within the application and by clicking on links to third-party marketplaces (for example, Tmall). In this way, a business account on Little Red Book can serve two functions at once – an independent sales channel and a tool for promoting products on other platforms.
It is worth noting that RED has a very unusual demographic profile – about 90% of the platform's 100 million audience are women.
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Little Red Book home page (left), shopping section (center), and product card (right)

Suning Global

Suning was originally known in China as a large offline retailer of various electronics. Later, it began to expand both in terms of the breadth of the range of goods in various categories, and in terms of its presence on the Chinese Internet. One step in Suning's e-commerce push was to attract cross-border brands from overseas.
However, Suning is not only waiting for brands of foreign electronic equipment to enter its marketplace. The company writes on its website that it primarily would like to see foreign manufacturers of baby food, cosmetics, shoes, bags and food products on its platform. In addition, while other major e-commerce platforms prefer to deal with brands that have not yet entered the Chinese market, Suning explicitly states that brands that are already listed on Tmall or JD are more likely to open an online store.
To date, Suning is the least significant of the major players, with its marketplace accounting for approximately 1.5% of the total cross-border market in China.
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Home page (left), product card (center) and online store page (right)

Conclusions

Today, more than 1400 categories of various products can be exported to China through cross-border channels (a complete list of these categories can be found at the link – a document in Chinese). Today cross-border ecommerce gives numerous opportunities to purchase inventory directly, buy consumer products from foreign brands, etc.
You can open your own cross-border online store on a dozen Chinese platforms and become a successful online retailer. Some of them are traditional marketplaces, while others are social networks with e-commerce features. But despite the differences, their requirements for exporters are similar:
● Entity registered outside of China
● Foreign registered trademark
● Statement from a foreign bank account
● Copy of passport of company's representative
● Payment of a refundable deposit (from $1.5 thousand on Pinduoduo to $10-47 thousand dollars on Tmall, depending on the category)
● Payment of an annual service fee (from $1 thousand for JD to $4.7-9.4 thousand for Tmall)
● Platform commission on orders (from 0.6% on Pinduoduo to 2-10% on Kaola)
Trading through cross-border makes it much easier to do business in China. The absence of the need to open a legal entity and a bank account in China helps reduce the risks of entering an unfamiliar market. Thus, small brands have the opportunity to test the demand for their products in China or prove to investors that they are promising without large initial investments.
China is closer than you think.