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Chinese Stock Bubble Now Plumbing Depths Of Human Stupidity

Tyler Durden's picture




 

What’s in a name? A lot apparently, especially if you’re a property developer-turned P2P company riding the wave of China’s self-fulfilling, margin-fueled equity mania. Enter Shanghai Duolun Industry, a Shanghai-listed company which, until recently anyway, engaged in real estate development and commodity residential buildings distribution. All of that changed however, on April 29th when the company announced it was setting up a financial services business. 

As it turns out, that business will one day involve peer-to-peer lending — an industry which is certainly en vogue — and, not wanting to leave any room for ambiguity, Shanghai Duolun Industry renamed itself P2P Financial Information Service Co., a move which quickly caused the company’s shares to soar. 

Via FT:

China's technology stock mania scaled new heights on Monday when shares in a Shanghai-listed real estate company rose by the maximum 10 per cent daily limit after it changed its name to P2P Financial Information Service Co.

 

The company, formerly known as Shanghai Duolun Industry, acknowledged in filings that it had not started developing a peer-to-peer lending business.

 

But the company estimated that an Internet domain it recently registered, www.p2p.com, was worth $100m.

 

The website currently features a few photos and a Chinese caption stating “This domain is worth $100m.”

Here are some visuals...

 

And in case you were considering a yuan-denominated P2P micro loan, here's how to get in touch:

Finally, here is what happens when you rebrand your real estate company as a cutting-edge P2P lender and your shares are listed on an exchange that's in the midst of a world-beating rally driven in part by millions of newly-minted, poorly-educated day traders:

*  *  *

Perhaps Shanghai Duolon P2P Financial can take advantage of China's move to liberalize the country's nascent ABS market because as we recently learned in the US, when it comes to securitizing cash flows, P2P is about to be all the rage.

 

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Mon, 05/11/2015 - 13:22 | 6081486 lolmao500
lolmao500's picture

Einstein was wrong. There's not 2 things infinite in the universe... but 3. Human stupidity, the universe and the stock market!

Mon, 05/11/2015 - 13:24 | 6081495 Headbanger
Headbanger's picture

Make that 4:

What do women want?

Mon, 05/11/2015 - 13:26 | 6081501 Herd Redirectio...
Herd Redirection Committee's picture

Well, what they want today is markedly different from what they will want 2 weeks from today.

So at least we know that much.

Mon, 05/11/2015 - 13:30 | 6081520 SickDollar
SickDollar's picture

Women dont know what they want , they think they do but they dont

perform well and you will never need to find out what they want

 

 

 

Mon, 05/11/2015 - 14:06 | 6081684 NotApplicable
NotApplicable's picture

So... is that the same white guy? Or do they all just look alike?

Mon, 05/11/2015 - 15:33 | 6082127 Freddie
Freddie's picture

Make that 5:

Money printing (fiat).  Ask the Japanese and the Ben Bernank.

Mon, 05/11/2015 - 13:28 | 6081513 Bunghole
Bunghole's picture

...and PT Barnum was right.

Mon, 05/11/2015 - 14:57 | 6081935 HopefulCynical
HopefulCynical's picture

"Some scientists claim that hydrogen, because it is so plentiful, is the basic building block of the universe. I dispute that. I say there is more stupidity than hydrogen, and that is the basic building block of the universe." - Frank Zappa

http://www.brainyquote.com/quotes/quotes/f/frankzappa106017.html

Mon, 05/11/2015 - 18:00 | 6082720 Butterflying
Butterflying's picture

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com

Mon, 05/11/2015 - 13:29 | 6081518 i_call_you_my_base
i_call_you_my_base's picture

No different than the US with that tweeter shit.

Mon, 05/11/2015 - 13:31 | 6081521 Dragon HAwk
Dragon HAwk's picture

So on the big picture, how many times do you think they will be able to Crash/Fleece the Retail Investors, before they catch on.. what was that line about if you marched an army of Chinese, enough would be born to replace them and never cease marching.

Mon, 05/11/2015 - 13:33 | 6081527 Winston Churchill
Winston Churchill's picture

They can't make a lead line long enough to plumb those depths.

Mon, 05/11/2015 - 13:36 | 6081533 tarabel
tarabel's picture

 

 

Well, China may have finally done it.

All of its efforts to become Strictly Number One may finally be paying off in at least one field of endeavor.

God, what a noise this crash is going to make.

Mon, 05/11/2015 - 13:38 | 6081544 ThisIsBob
ThisIsBob's picture

Are there any plans to turn these people loose on the SnP?

Mon, 05/11/2015 - 13:50 | 6081598 Downtoolong
Downtoolong's picture

Because, every ghost city needs a few phantom companies where the ghosts can go to work and earn counterfeit money to invest in the phantom companies and earn phony gains to pay for their worthless appartments.   

Mon, 05/11/2015 - 13:53 | 6081609 spinone
spinone's picture

So much money sloshing around out there. Too bad it doesn't get not the productive economy where it would generate growth

Mon, 05/11/2015 - 13:54 | 6081613 huggy_in_london
huggy_in_london's picture

This used to happen in Australia around 1998 when mining companies effectively shut down.  Often their share price was sub 10c.  They suspended themselves from teh exchange subject to an "important annoucement" and re-opened as an internet company.  For some they didnt even say what they were going to do, just that they were becoming an "internet company".  These penny stocks would then roarpast 10c.  Now, from memory, i think between 0.01 and 10c they trade in 0.01 mulitples.  But once over 10c they would trade in 0.5c.  So you'd get this huge leverage effect simply cause once past 10 the next guy had to pay 10.5 or 11 etc.  Huge money was made.  I remember ceasing to do this when i received a call from a buddy of mine that used to think term depositis in a bank were as risky as he could allow himself to go.  Whe nhe gave me a tip on something I knew the jig was up.  Sure enough, most of them crashed out and went into administration.

Mon, 05/11/2015 - 13:59 | 6081639 wedderburn
wedderburn's picture

hell it's just going for the gap fill as shorts close

Try Pink sheets or AIM market for serious day trading entertainment

Mon, 05/11/2015 - 14:15 | 6081709 Toolshed
Toolshed's picture

Why are they using Caucasian models? Is it because now the entire world knows the Chinese can't be trusted about anything?

And speaking of Chinese ethics......does James Franco know he's appearing in their ads?

Mon, 05/11/2015 - 14:12 | 6081721 blue
blue's picture

Ask Jim Rogers about FABU

Mon, 05/11/2015 - 14:23 | 6081775 Evil Bugeyes
Evil Bugeyes's picture

I'm just about to list a new IPO on the Shanghai exchange. It's an internet-based pet supply company. I'm just waiting for the mascot, a really cute sock-puppet dog to arrive. The initial valuation is $2B yuan. Wish me luck!

Mon, 05/11/2015 - 14:42 | 6081852 reader2010
reader2010's picture

My understanding is that they'll blame soon to come hyperinflation on those day traders who will then be conveniently cycled ( I mean executed) thanks to the People's demand in the land of the People’s Republic. 

Mon, 05/11/2015 - 14:54 | 6081907 thunderchief
thunderchief's picture

The Mainland Chinese are funny people,  and do some crazy stuff now and then.

Just look what they did with politics under Mao and the Cultural Revolution. 

I say this sucker has some more room to run.

Mon, 05/11/2015 - 15:11 | 6082020 Smiddywesson
Smiddywesson's picture

Nothing ever changes.  I read in John Neff's book that seemingly any company that wanted to cash in on the 1960s electronics craze just had to add "ics" to the end of their name.  This of course, was the case during the .com craze, and apparently is always the case.  What ridiculous foolishness is next?  Maybe virtual reality tullips?  I just don't care anymore, I'm all in at the top.  Weeee!

Tue, 05/12/2015 - 08:20 | 6084357 armageddon addahere
armageddon addahere's picture

Reminds me of when Minnie Pearl's Fried Chicken changed its name to Performance Systems just before the  market collapsed and its stock went to zero.

Anyone else remember National Student Marketing, Four Seasons Nursing Homes, Minnie Pearl's Fried Chicken?

Mon, 05/11/2015 - 15:50 | 6082201 Downtoolong
Downtoolong's picture

Finally, something I can invest in to get back the money I lost on TWTRQ.

 

Mon, 05/11/2015 - 17:55 | 6082697 AraAraAraTomato
AraAraAraTomato's picture

Wow look! In German language it even worth 1 Billion!

Do NOT follow this link or you will be banned from the site!