This page has been archived and commenting is disabled.
"Too Many Zeros": China's Stock Bubble Proves Too Much For Computers
With economic growth decelerating markedly and with capital flowing the wrong way for four consecutive quarters (to the tune of $300 billion), China needs its margin-fueled equity mania to continue in order to distract everyone from the fact that the fundamental picture is, to quote Bloomberg metals analyst Kenneth Hoffman who recently visited the country, “a lot worse than you think.” The PBoC looks set to step up their easing efforts in an attempt to keep the music playing as evidenced by last weekend’s RRR cut and indeed the rumor now seems to be that the central bank will conduct ECB-style LTROs to ensure a new plan to (essentially) bailout deeply indebted local governments doesn’t end up working at cross purposes with efforts to keep liquidity flowing.
Meanwhile, southbound flows (i.e. money flowing from the mainland into Hong Kong shares on the back of new regulations in China that allow mutual funds to invest in Hong Kong-listed equities) hit $10 billion in Q1 while the pace of new stock trading account creation has continued to accelerate with data from the China Securities Depository and Clearing Co. showing more than 3 million new accounts were opened in the first two weeks of April alone. This helped shares of Hong Kong Exchanges & Clearing to go “interstellar” last week as analysts and investors alike are betting that record turnover portends big gains ahead for the exchange operator with Citi looking for EPS gains of over 40% over the next two years.
As we noted on Thursday, Citi also believes we may be only halfway to peak mania because even though daily turnover is at unprecedented levels in absolute terms, it rose 10 fold from 2006-2007 and has “only” managed a 5X move this time around.
Meanwhile, on the mainland, turnover associated with the country’s self-driven stock frenzy has now propelled the Shanghai Exchange to the top spot worldwide in terms of volume and in fact, turnover was so high on Monday at 1 trillion yuan, that the exchange’s software was incapable of reporting it. Here’s Reuters:
The exchange's trading turnover exceeded 1 trillion yuan ($161.28 billion) for the first time on Monday, but the data could not be properly displayed because its software was not designed to report numbers that high.
"This is a software configuration issue, not a technical glitch," the Shanghai Stock Exchange said in a statement, adding that trading and price quotes for individual stocks were not affected.
The exchange said it would need to replace its current software files that handle volume reporting to resolve the issue.
China's stock market has nearly doubled over the past six months on hopes of monetary easing, with the world-beating performance luring retail investors who have been opening accounts at a record pace.
Trading turnover on the Shanghai and Shenzhen stock exchanges totalled $1.85 trillion and $1.56 trillion respectively in March, making the two bourses the world's biggest that month, according to the World Federation of Exchanges.
* * *
So there you have it. China's day trading hordes — whose numbers are currently growing at a clip of around 1.6 million per week — have officially overwhelmed the software that tracks volume in Shanghai. It's worth repeating that if you believe statistics (and Jamie Dimon doesn't think you should), around one in three of the millions of new "investors" in China have an elementary school education or less and let's not forget this chart which is perhaps the scariest visual of them all:
On the bright side, it's not often in today's market that man overcomes software, so score one for human traders.
- 19714 reads
- Printer-friendly version
- Send to friend
- advertisements -





00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
To the left to the left
shift all the decimal points on the zero's to the left
hey you mutha uckers the we hit that one out of the ballpark....
The Chinese have more Zeros than we do. Used to be the Japs, look how that ended. Thanks Obama.
The Chinese are doing all they can to save the "market". They'll fix this and market levitation will continue.
The real economy continues to be fucked six ways from sunday, of course, but nobody cares about that.
Y2K called and wants it's glitches back
That's why we have Zero to preside over all this zeros
The Chinese are gamblers. They pumped the hell out of Bitcoin and a lot of people lost their asses. Now their market is getting pumped to sky high. The same outcome will occur.
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
Don't tell me you sell zeros...
No, he's another identity for the dude selling Hack The ATM cards.
..."Need More Zee-los!".....
Seek and ye shall find.
https://btc-e.com
Chinese don't have a problem saying Rs, only Japanese do and some South Koreans to a small extent
We zeroed some folk
Zeros are cheap. Just print some. They must be using a cheap chinese printer.
Ones are just as cheap.
00000000 = 0
11111111 = 256
See?
I just created "money" for free!
What a magic trick.
Now- why is it that only the chosen few get a license to print "money"?
8 bits = 255. There, fixed it 4 u.
0 to 255 - there are 28 (256) different possible values for 8 bits.
If 00000000 equals Zero
then,
11111111 equals 255
hence,
256 possible values.
Ha! You must be a banker.
He's a computer guy more likely. 2 to the 8th is kinda why you're reading this on a computer.
This is all going to end well. Record highs in the US. Beijing markets trying out trillions. Japanese debt trying out quadrillions. What could possibly go wrong?
Are there no railroads to be built?
A Chinese grandma can make much more trading on 1990's monitors than anyone there doing any real work. Plus she has the knitting output at the same time.
One thing I have never seen with Chinese grandmas trading on VGA CRTs while knitting...is nets to prevent them suiciding. Have never been needed - The Chinese grandmas are the sweet spot of international finance fuckery. I expect to see them on MSM more now.
Hmmm. 1 trillion Yuan kills everything. TYK? Alex Jones was right back in 2000, but he didn't learn Chinese.
Now see our financial crooks would have just wrote a zero on cardboard and taped it to the right (or is it the top?) of the board and declared "All's well!!!"
Fu King Amatuers ;-)
QE2K
reminds of time back in 2008 where some volumes turned negative ...
being retarded is a big help making money in "the market"
I heard it helps to wear a funny hat. ;-)
Looks more like "Saved by Zero" to me.
"Hahahahahahaha! You want paper? Only one with lots of zero's!"
Bubble? What bubble? It's perfectly normal to have lots of cab drivers rushing to set up margin accounts. It''s just one sign of a healthy market.
And shoe shine boys.
Don't forget the shoe shine boys.
HACK THE ATM MACHINE AND GET FREE CASH
You can hack and break into a bank's security ATM Machine without carrying
guns or any weapon.
How is this possible? a trusted hacker NEILSTON THE WORM has developed the special blank ATM Card
which you can use in any ATM Machine around the world. this card is been
programmed and can withdraw 2000 USD daily in any currency in any atm machine in the world.The card will make the
security camera malfunction at that particular time until you are done with
the transaction you can never be trace. I got mine and i have got lots of cash from it thanks to neilston contact him via (atmhackgeek@gmail.com)
Looks genuine to me.
I particularly like that the card makes the camera malfunction even before the ATM (or "ATM machine", as our benefactor would have it) reads it. So the camera cannot record your approach.
Also, jolly sporting of Mr Neilston the Worm, the "trusted hacker", to let us all in on this.
Get your free Hack The ATM card at www.Self_Incarceration.com.
Ha! You summed up my thoughts!
What a rascal that "NEILSTON THE WORM" is, huh?
I betcha his real name is MR. HONEYPOT.
-noewuddeyemene?
Music_to_scam ATMs to.
Make quadrillions the new benchmark. Trillions are getting old.
Zimbabwe had a 100 trillion dollar note.
We know we can do better than that.
Let's shoot for a 100 quadrillion note.
Zimbabwe accounants had the problem of last year balances averaging zero and new year balances overflowing max allowed currency values
For some reason they insisted keeping both years in the same database
In the end the advice was to wipe out last year's data because in this year terms it was almost zero so why the hell did you want to keep accounting it
The Albanian Lottery Bubble of 1997 x 1000 is the only thing that comes close to what this is going to look like.
I'm thinking it will be more like this:
https://www.youtube.com/watch?v=JDz-z92Qc4Q
China needs its margin-fueled equity mania to continue in order to distract everyone from the fact that the fundamental picture is, to quote Bloomberg metals analyst Kenneth Hoffman who recently visited the country, “a lot worse than you think.”
I'll bet.
I recently spoke with a custom shack builder I know. He's in tight with very big shack and property developers (thousands of them built annually).
He said that racket is hoping to make it to the September/October timeframe before it "blows up". He said builders are hoping for a republican White House that can find a way to "keep it all going at least 3 or 4 more years...".
He told me none of them can see it holding up beyond that.
Personally, I think it's already coming apart. I think it starts this month with Greece. It wouldn't surprise me if we didn't make it through this summer either.
m
How does one say "The Golden Bernanke" in Chinese?
It is the same as "Piss on the Peons" and google translate handles it better.
WTF is going on at Walmart? “There Are No Stores in Denver Metro Open Past Midnight” – Employees
There's a glimmer of hope.
Return of the Blue Laws, at least in the Private sector.
Close them all on Sunday too.
It will be painful, and can't hurt the bottom line any worse than it is now, or will soon be.
shex'll hit 8000 before this is done. We're barely halfway there.
it's a classic situation right now with the US and China. Whoever crashes first is fucked as the other will be left with near infinite buying opportunity which will bolster the insane valuations.
Overwhelmed by "cipher stroke."
In Octal or in hexidecimal still amounts to nothing................