This page has been archived and commenting is disabled.
Crazed Chinese Housewives Frothing At Hong Kong Bubble Euphoria
As we pointed out Wednesday evening, the spill over of China’s self feeding, margin debt driven, domestic equity buying frenzy into Hong Kong-listed shares accelerated markedly overnight as the Hang Seng jumped nearly 7% at one point with volume turnover 400% above the 30-day average. Shares closed up 2.7%, with the Hang Seng now at a 7-year high as cash poured in thanks to reduced regulation on Chinese mutual fund purchases and as some investors likely feel that the following chart may suggest mainland shares are overvalued.
As we’ve documented over the past several weeks, this has all the makings of an epic bubble as retail investors in China, some with little in the way of formal education, are opening stock accounts at a furious pace with more than 4 million created in March alone. Now, with Hong Kong undervalued relative to extremely overvalued mainland shares, the mania is spreading quickly as housewives and security guards “buy stocks like they’re gambling in Macau.”
Via Bloomberg:
“Things are getting quite exciting,” said Chow Man, a 68-year-old housewife who favors Chinese banks and infrastructure stocks and says she has as much as HK$200,000 ($25,000) in play. “It’s becoming like a hobby for a lot of mainland investors to trade stocks now. That’s why more of them are taking opportunities in Hong Kong.”
Hong Kong locals are jostling with bargain-hunting Chinese investors after the Shanghai Composite Index’s world-beating rally pushed the discount on shares in the former British colony to the widest since 2011. While enjoying the gain, one of the patrons at the brokerage likened the situation to a casino.
“I’m trying not to buy too much because the market will likely go down a bit and some stocks are getting more expensive,” said Juliana Lui, a government worker.
“I’m staying conscious. Some people are buying stocks like they’re gambling in Macau.”
“The rally may last for a few more days,” said the security guard, who’s hoping stocks will rise another 10 percent. “I’m just taking a lunch break to do some trading because the market is hot.”
We suppose this is further evidence that no one is planning on listening to the China Securities Regulatory Commission, who recently warned that investors “shouldn’t be thinking if they don’t buy now, [they’ll] miss it.”
Here's a look at the longer-term picture and peak madness from the Thursday session:
* * *
And so, as the "elementary school-educated Chinese momentum trading hoardes descend" onto the Hong Kong exchange, we'll quote BNP who recently gave up trying to predict what happens when millions of semi-literate retail "investors" suddenly adopt (without knowing it) the greater fool theory of investing wherein it doesn't matter how much you overpay as long as someone else is willing to overpay-er:
"What happens next is an unknown unknown... speculative bubbles are inherently re-enforcing in the short-term and frequently last longer than expected. The longer they continue, however, the larger the eventual bursting."
- 23884 reads
- Printer-friendly version
- Send to friend
- advertisements -




Pretty sure they got hold of the FEDs software.
I get my best tips from Hong Kong shoeshine boys.
'Hong Kong Phooey' loves "Anacott Steel".
You do mean Brue Horseshoe?
LOL!
I buy 100 shares of Doublecrick (DCLK) and Rycos (LCOS) prease.
I think a 1929 dow layover is more appropriate for China at this point the NAZ.
No Crinton's!
No Bush's!
LOL!
Well that maybe the trigger for the great reset. Lots of triggers out there these days.
the hong kong swan has ducked his head. they do that right before they take flight.
That's what I was thinking.
Is this the Chinese bubble spilling over, or is it the sign the Chinese bubble is bursting? Right before the 2008 crash, people put their money in oil ETFs in the hope that commodities would be a safe haven, or that's what I heard: http://www.oil-price.net/en/articles/2008_economic_collapse.php
The stock market collapsed, and oil ETFs soon followed.
Note that the combined capitalization of the Shanghai and Shenzhen stock exchanges is about $4.5 trillion, while the Hong Kong exchange is about $1.0 trillion. So a 1% decline in the capitalization of the Chinese exchanges flowing into the Hong Kong exchange would result in a 4% increase.
http://en.wikipedia.org/wiki/Shanghai_Stock_Exchange
http://en.wikipedia.org/wiki/Shenzhen_Stock_Exchange
http://www.theglobaleconomy.com/Hong-Kong/stock_market_capitalization_dollars/
Just make sure they wear a condom.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Looks like a blow off top to me. Better get those printers fired up and turn them up to eleven.
I'm just glad they finally relaized that real wealth is created in PAPER assets. Not real estate. Certainly not gold.
Who said we have nothing in common? It turns out the masses in China are just as stoopid as the sheep in Merika.
never met a human that couldn't be fleeced...
The sheep never leave the casino winners. That is all you need to know.
Typically they give into impulses and lack the discipline needed to leave a winner. The biggest idiots I know can be successful if they possess basic discipline. Funny how it seams society and the education system seams to try to discourage discipline at every turn.
So it's sort of like sex, except that most people don't want to get off for some reason, and will do insane things to avoid it.
Sex is more fun when you get off more than once.
I feel sorry for Chinese housewives - NO HAPPY ENDINGS FOR YOU!
They don't build those big buildings out of nothing. Now what they pay for them with is another story.
but they do send out a winner every now and then to keep the hope alive...
Exactly, like the line in the movie Casino goes"it's all been arranged for us just to get your money, we're the only winners, the players don't stand a chance"
And if they start to, that's why we have pit bosses.
I was hoping for some pics of Chinese housewives.
Frothing???
http://migrationology.com/wp-content/uploads/2012/08/smiling-lady-thumb-...
Ahem, ZH'ers I think the Nasdaq analogue isn't valid...for now. THis is more realistic and shows a lot more upside if you can run the trend successfully and anticipate what the peasants are going to do...ie gamble.
http://www.marketanthropology.com/2015/03/china-flirts-with-major-breako...
Some of us will have to make money sometime, we can't be out of every market forever and we can't all buy ZH's most shorted selection. WTF else can you buy?
Who says we aren't making fiat in the market? Oh, Pms and semi-Pms (think lead) are always nice to have just in case.
it is back to normal pricing
350 rds of blazer, 9mm for 80!
ok, the math
1 oz=5250 rds.
i ask, what would you rather have 5k rds or one oz shinney?
another dumb question
20 oz or 20 acres with woods and deer?
Still working on the 20 oz. The second half is already accomplished.
LOL- spoken like a true top-of-the-market pleeb....
Yes, Nancy- sometimes shit DOES get too expensive- and the suckers are ALWAYS you guys who think that there's just "one more push up left".
ZH doesn't have a "most shorted selection"- ZH reports facts, and lets you draw your own conclusion- last time I checked, ZH never told you to buy or sell anything.
ZH doesn't tell you how to sell or buy anything but when has ZH ever said anything positive? I hope you haven't been short this whole time, sir.
"WTF else can you buy?"
Uncut Cocaine. Time to get a real job, slick.
Hate to say it but it's now China's time to enjoy a good capital flow shift and party like it's 1999.........
Thay haven't been burned like we did (twice now) so this thing could get alot hotter before it cools down (hope theyremember where the green line is though)
Many people may soon jump down from buildings.
Very few will fly.
... and us housewives are pimping themselves. Heard it through the vine.
... and us housewives are pimping themselves. Heard it through the vine.
LOL....hoes.
The house always wins.
Once they lose big they turn from housewives to hookers for the owners.
Horry fuk...
Greedy people end up losing everything. They never stop when their stock is up 100%. They let it ride in case it goes up another 100%, but it eventually crashes back down to its true value.
Like AAPL. j/k
Those who procrastinate are bound to miss the bus.
Shanghai exchange has jumped 92% in one year and over 80% last year (Jan to Dec 2014) being the best stock exchange returns in the world. Thus far in 5 quarters it is up over 120%...
If you missed it, you can only blame yourself, if you did not invest.
1.4billion people out of which even if 100m people invest in stocks is a lot more than the entire United States of America investors!
I sold some stocks today and will sell some more tomorrow.
Rally should last a few more months but best is to boko gains. Some stocks are up 50% in one month and some are 100% in a few months.
New laws are being introduced to let investors send money out to HK as well as invest in domestic markets.
Plus real estate is slowing down so the money is flowing into stocks instead.
accounts new china stock trading
I missed out on the Zimbabwe run up too. Still kicking myself for that.
Well...we must adapt and move fast in today's hyper ventilating news world.....it is a trader's world...not an investors world any more..like the good old days.
We may as well throw all the school text books!
Neither QE nor any zero rates are mentioned in them!
What did you ever buy from Zimbabwe? By the way, China sells EVERYTHING TO EVERYONE!
You should not be comparing apples to oranges. That will be a good start...
Investing in Old Mutual stock actually made sense as a hedge against "Zimbabwean" hyperinflation. Old Mutual stock was actually worth something. This is a pretty obvious pump-and-dump scam. Hong Kong has a currency board, so the rubes don't even have hyperinflation as an excuse.
Dead cat bounce, then into wok you go kitty
Chinese housewives of Orange County approve this message !!!
awesome sauce
If it looks like this when they tell you NOT to buy, just try imagine the fantastic rally when they announce the "buy" signal!
I's gonna be rich I tells ya... RICH!!!
Fuckin' A...how do I get listed?
When Hong Kong housewives and housemaids talk about share prices while buying foodstuff in the market every morning we know the euphoric stock bubble is real. This is augmented by teachers calling their stock brokers during teaching hours while their students wait for them to return to the classrooms. Above is real in certain Asian city.
Funny. I have a vivid memory of my high-school English teacher ducking out of class to conduct a real-estate transaction in the states a few years back. Wonder how that turned out... heh
She'll be fine. She'll look back and realize being forced to do MILF porn was the best thing that ever happened to her.
Not like there's a future in gubmint schooling---and porn is the only trade where women can make nearly enough to retire on unassisted without a gubmint-mandated "equal opportunity" handicap.
(What? Teach was a he, you say? I say, not any more.)
You don't really know shit about Hong Kong do you? Yacking about how to get rich quick and goddamned dimsum is all these fuckers yack about 24/7. The singular obsession with money and how to make lots of it fast and easy is nauseating, and it's nonstop. Whether ZH reports on it or not, whether the concept penetrates your skull or not.
4 years ago it was property... 2 years ago it was gold... now its stocks. All these morons do is crowd into trades and blow cash. Get it?
SMFH.
They've just been under the thumb of communism for so long they're making up for lost time!
H-O-N-G K-O-N-G scientist duuuuuuuuuuuuuuuude.......
So that you get the idea:
4 years ago it was the start of the property boom.....now I've increased my net worth 5x and have a portfolio of property that produces yields in excess of 8% p.a
2 years gold.........SGE is now pricing it 20% above LBMA/Comex prices and we are about to have the price setting removed from the Comex/LBMA (not that you have any clue). Plus the price has been a give away ever since so I have zip clue about the bubble here.
With regards to crowed trades, I doubt you even know where the fark the HK Stock exchange is, let alone where the a fark Hong Kong is on the map, so.....DUMB ARSE ANYONE!
being dumb is holding your nominal dollar whilst they increase the qty of fiat 4x.
I've managed to keep up and beat the devaluation of the ccy, I do not see your wages or whatever you are living off staying with asset prices in general. SO I ASK WHO'S THE DUMB FARK?
I think the last laugh is on yourself! So LYAO really doesn't help.
You guys crack me up. These are the same dumbasses cloggin Chow Tai Fuk buying gold at all-time-highs... but then you all proclaim them fucking geniuses. LMAO. Fwiw... these decrepit sad sacks sit in little penny-stock shops day-in-day out all over the city doing this shit. The Macau gambling analogy is apt. If theyr'e not fritting away their earnings on bad stock plays they're on the overnight ferries to Macau to blow their hard-earned miserly income there. They're compulsive gamblers, whether its stocks, actual gambling, property, or gold. Get-rich-itis infects this whole fucking city. And piling into in the same trade is what they do best.
But go ahead and applaud their fucking brilliance when it's gold.
LMFAO.
Pai Gow Market
I guess being poor has its perks for you!
Please also enlighten us on what you know about GOLD and why you are able to price it say better than the SGE?
Your not financially literal period.
The US needs to get China to remove barriers to the US financial sector. Clinton failed in 1995 during the Multilateral Investment Agreement between the US and China, bring back Glass Stegall and cut capital gains tax to 0.
No ones really sure who's bidding up the HSI. The cross border tranche from the China side has been used up but the HK side still has quite alot of quota left.
With regards to housewife investing, yes you have a strong culture of it and before the average keyboard worrier discount their instinctive ability alot of them are already muti-millionaires, financially independent and pretty street smart. Yes you have your dumb arses too.
What is happening is highly unusual for sure.
Just bought 10,000 Shares from my Asian-Markets Advisor Long-Duk Dong.
The average person is immersed in money and prices. People take signals they barely understand, and then let those signals drive their behavior.
There is no question about it, money and prices are a control system for humans. Like a fish in water, a human is immersed in money and prices. This is why money power needs to be moral and legal. Without legal moral money, high-trust civilizations are unlikely. We will not evolve.
People’s simple behavior predicated by prices is why original money masters, Jews – think Goyim are cattle. Goy can be led with money and prices. Kabala occult methods are further used to enforce illuminist control methodology, creating hidden vertical (pyramid) money power structure. Chinese people on average, are superstitious, and hence will easily fall prey to Zohar and ancient Talmudic/ Babylonian control grid.
To my mind it can be reduced to this: debt instruments are hung on populations as control means. Populations then take out new loans, and this private credit is then directed into “markets.” This new credit then asset inflates what it points at, which in this case is stocks. More credit then comes on-line with yet more loans, in a positive feedback scenario, pushing up prices, signaling to Goy to borrow and buy more.
At some point in future, real productivity does not keep up with prices. People cannot work to produce goods-as- prices to then pay for their loans. Also, said former credit that came on line quickly per unit time, is now being grabbed out of money supply and vectoring to bankers quickly per unit time. In other words, all credit loans are usury front loaded, and this usury passes to banker on front of loan. This drains money supply and enriches banker while leaving private debts in place. Banker can now use his stored usury money to buy goods and services at cheap prices.
A stock market collapse leaves private debts high, and that then causes debt depression. No new private loans will be formed with now saddled debtors, hence no new credit formation, and positive feedback swings in the opposite direction as the money supply rapidly reduces; former credit money is grabbed to pay-off former debts. This accelerates into rapid depression unless there is counter-spending by government. Keynes couldn’t fix flawed credit system, all he did was identify its flaws and hence the can was kicked down the road to us.
Bankster private credit system is inherently flawed, and its flaws are used to control populations. Welcome to the matrix.
For profit corporations should not be making debt instruments against humanity, to then harvest man’s life energy and real assets.
www.sovereignmoney.eu
your philosophical point of view maybe a great exercise at Universities and the new architects of the modern world, but at alot of us normal people need to find the edge and angle to make that thing that spins the world.
Disliking it will only bring suffering, discontent and the destruction of ones potential (no $$$ no talk is quite true!). US use to be a nation where getting ahead was a good thing, seems like now its following stinky old Europe where the elite like to keep their working class working and to promote the idea that $$$ is second class. Could not be further from the truth!
Debt is not evil if used wisely. Anyone who knows how to analyze corporate financials can tell you that. Your assertions are but half truths.
Lanky Chinese housewives on their back legs wrapped around your neck is another hedge.
"The horses are on the track". A hot stock would be India Oats.
Actually a lot of people will get "squeezed out" of the robot tech investment wave, you don't want to be broke and trying to compete with a better well capitalized robot, you will lose.
Those who invest in replacing others will replace others.
"I bought an iphone instead of a robot that builds iphones, now I'm unemployeed but got a nice phone, and the guy that invested in the robot factory that makes iphones rents my wife on Tuesday nights"
Dont be that guy
I would fly to HK just to see a WilliamBanzai exposition. The price to stay there might become pretty reasonable soon.
Like always, when you really really need a buyer for your paper, there won't be one, at any price. That's not "investing", that's a firing squad.
And consumption in the Chinese "investing" public will, for some time, will be low. Real low.
dup