Archive - Jun 25, 2013

After imploding in its morning session by a whopping 5.8%, which would have brought the two day crash to a stunning 10%, the Shanghai Composite rebounded trimming its losses by more than half due to so far unfounded rumors there will be a PBOC press conference later today in the last hour of trading in which it may provide some impetus for a bounce (which oddly enough is boosting US equity futures far more effectively than those of China). The expectation is that at the Lujiazui Forum (link here), the PBOC will speak alongside the the CSRS, the CBRC, and CIRC at which the PBOC will wave a white flag to the Chinese "feral hogs." Don't hold your breath: considering the China Daily oped released earlier, this seems highly improbable but at this point global markets are clutching at any and all straws. Look for big market disappointment if the PBOC refuses to address any additional liquidity provision in a few minutes or over the next several days especially since unlike the US, the Chinese central bank is not willing to be held hostage by the stock market in its mission to rid the country of shady "shadow bank" lending conduits.