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Popping The Chinese Stock Market Mania
If you are wondering what triggered the PBOC to pull the punchbowl of leveraged collateral away from the 'wealth-creating' stock market exuberance in China... wonder no more. The last 2 weeks saw the biggest surge in new Chinese brokerage accounts ever, with this week alone the highest since October 2010 and January 2008 with a stunning 228,000 new accounts opened. On both prior occasions of such a maniacal surge in speculative accounts, the Shanghai Composite made a significant top and fell dramatically in the ensuing months.
How oddly dis-similar the PBOC is to the Fed!! Instead of encouraging open leveraged speculation, the central bank of China appears more risk averse, recognizing the potential medium-term disastrous consequences from such boom-bust moves (and likely has no cheer-leading CNBC channel to take care of).
h/t Brad Wishak of New Edge
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Mozel tov!
http://y2u.be/tOW5eljyjms
Hey Lloyd.....we've found some new sheeple to shear......
This is why China is so backwards and will remain in the dark ages.
Don't they see the light of trickle-down wealth and how many moms and pops have benefitted from record stawk gains in the west?
They're clueless. It's sad
Horee phuk!
Sum ting wong!
Expect a wave of Chinese money to wash ashore in New York, then be crushed like all the U.S. retirees and IRA/401K's.
"It's a trap!"
WTF is it a new high today then?
Dead cat bounce?
"Dead cat bounce"
Off the ceiling, no less!