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Crash Contagion: Second Chinese Billionaire Wiped Out In Seconds After Stock Instacrash
Yesterday China's richest man, Li Hejun, lost more than half his fortune when his solar company stock suddenly crashed over 50%. Overnight it happened again, and Hong Kong’s securities regulator, warned other investors to exercise "extreme caution," as Hong Kong's best-performing stocks this year are crashing in a serial, tulip-like manner. And another billionaire was promptly wiped out: Pan Sutong started the day engorged with wealth after his companies Goldin Financial and Goldin Properties had risen 300% this year. By the close he had lost 60% of his wealth!
What goes up... crashes to floor in a wealth-destroying frenzy...
“It’s a contagion effect,” said Nick Cheng, chief derivatives trader at Liquid Capital Markets Ltd. in Hong Kong.
Investors “are now rushing to take profit and everyone’s suddenly running for the exit,” he said.
The volatility “will damage investor confidence with such a reputable stock exchange.”
As Bloomberg reports,
Hong Kong’s best-performing stocks this year are tumbling even faster than they rallied.
Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., controlled by billionaire Pan Sutong, plunged more than 60 percent in Hong Kong trading Thursday. There was no immediate explanation for the drop. Before the rout, the two stocks surged more than 300 percent in 2015 for the biggest gains on the Hang Seng Composite Index.
The tumble follows the mysterious 47 percent plunge in 24 minutes by Hanergy Thin Film Power Group Ltd. on Wednesday, which erased $19 billion in market value before trading was suspended. The companies have other similarities. Hanergy is also controlled by single billionaire owner -- Li Hejun.
Almost no analysts tracked Goldin Financial or Hanergy even as their market values swelled to more than $30 billion, making them among Hong Kong’s biggest listed companies, while doubts over the sustainability of the rallies increased.
“Valuations are ridiculously high,” Castor Pang, the head of research at Core Pacific-Yamaichi in Hong Kong, said by phone. “The stocks surged too much and no one knows why.”
...
The gains by the Goldin Group companies this year had enriched Pan by $20.4 billion, the biggest increase in wealth among members of the Bloomberg Billionaires Index. Pan and 19 other shareholders controlled 98.6 percent of Goldin Financial’s shares as of March 4, according to Hong Kong’s securities regulator, which warned other investors to exercise “extreme caution”.
Regulators in Hong Kong should have responded proactively to “absurd levels” of stock valuations and need to strengthen monitoring for signs of market manipulation, Liquid Capital’s Cheng said.
But - who could have seen this coming - especially with these avid traders watching over these markets...
As for Pan, don't cry for him just yet. With a few billion in paper wealth left, we are sure he will do ok at least until the next single stock crash wipes out another 50% of his wealth, and so on.
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Wat Zee Fuk?
We Too Low!
Is this article somehow related to the Vice Index. Looks to me like typical Vice Activities. Minus the Little Blue Pill of course.
He's still up for the year.
These poor suckers aren't backstopped by the Fed.
It's absolutely unacceptible that the Chinese government simply stands by while such a fortune is dessimated. Large companies form the backbone of a modern economy, and letting one fail causes deep rooted structural problems. To me this highlights a serious lack of leadership in China. I hope our leaders here in the US take note of what happens when they fail to recognize that a company is simply too big to fail.
Lesson: GTFO of the markets.... (And Stay out!)
NO! NO! NO! BTMFD!
EVERYTHING IS FIINE!
:)
What is the Chinese character for diversification?
Trick question. There is no Chinese symbol for diversification
Diversified in Chinese >>> ( . Y . )
No matter how you turn them, shake them, or bounce them, CHA CHING!
Good thing that can’t happen here.
The Fed, BOE, ECB or Bank of Israel will “buy” it up.
Bet you he wishes he had booked profits yesterday.
Perhaps he did.
Amen, brother! You can rest assured that our government, where there is not even a smidgen of corruption, has moved decisively in the direction of business as usual by merely fining, and not imprisoning Jamie Dimon et al for being found guilty of currency fraud.
Now, if the price of a "home" would just drop 60%, young couples in China would have a chance to avoid becoming debt slaves.
and you got an accreditation with such lousy spelling?
in a serial, tulip-like manner
I had a tulip in my cereal once.... once.
"I was thinking of takin' up smokin'...this licks it!"
It looks like ol' MoMo now speaks Cantonese. The new group of Chinese middle class investors appears to approach the market rather like they approach the roulette wheel. I'll bet there are more of these HK instacrashes waiting in the wings. This can't end well, and it would be just like something obscure like this to produce the market shock that nobody saw coming.
It's a casino and you ARE gambling. The markets are all numbers made of people's guesses and feelings. "Value" is just a thing that people share, whether or not it actually has worth is a different thing....
I once had a big crush on an Italian girl. I shared her love, needless to say, once I had to share her with another guy, her value dropped in my heart close to zero.
There goes my lesson about what VALUE actually means...
"Value" is just a thing that people share, whether or not it actually has worth is a different thing....
So you are a muppet, eh?
You do not have a clue about value?
Value is NOT just a "thing".
That word has a meaning. It is not just some abstraction...although that is how you view it as you cannot define it.
Value is rather SUBJECTIVE. It is not anything which is shared by a collective.
Value can have little to do with PRICE (which is a different concept). At times Value can be correlated with price while that is NOT a requirement. For instance I can value friendships and yet I do not place a price upon them.
I have published here before what value is. I have appreciated the site. I have added value to the commentary. That is what appreciation means. (Extracting value is called depreciation.) The hint to the definition of value is in this concept of appreciation and depreciation.
But I tire of repeating that which needs to be understood at a fundamental level on a financial website. I value my ime much more than that.
The collapse of America is due to the fact that our society does not understand even what a value is. (I am not writing of the Dictionary definition...) Just what is it that makes anything valuable?
And...You have not a clue. You never did.
In Mandarin, "....and it's gone" translates (very roughly) to "Dragon eat all cow. You cow too."
This may be off topic, but interesting to discuss nonetheless. There's been speculation (especially by Ted Butler) that JP Morgan is the big buyer of SLVER EAGLES & MAPLES since 2011. He says JP Morgan bought over 100 million oz of Silver Eagles since 2011. This makes no sense when one uses logic and reason to discredit ths conspiracy:
No, JP Morgan Is Not Buying Silver Eagles
http://srsroccoreport.com/no-jp-morgan-is-not-buying-silver-eagles/no-jp-morgan-is-not-buying-silver-eagles/
Easy come.......
The shit is hitting the Pan.
Goldin Showers
Confucious say "He who rash with cash lose stash in flash crash"
Didn't he also say "your cash ain't nothing but trash"?
Wei Tu Lo lost his fortune gambling.
HAHAHAHAHAHA
The Chinese bubble crash begins. How ya like those overseas bases now, Mr. Xi?
How do you say "schadenfreude" in Chinese?
ez cum ez go
How does a tulip crash?
Boom-Google tulipmania
"He frying too row"
Last picture, dude w/ the shades be like "Fuck this, I'm moving to the US"
Hee Dum Gy
I guess these Asians never heard of Fibonacci retracements.
And this is how it will end up for millions of 401k holders who are either retired or thinking they are going to retire soon. Everything will be vaporized before they can say E-trade baby.
Just wait until police pensions get vaporized. Good times!
Large swaths of Amerikan cities already look like Mogadishu, might as well have the Warlords to boot.
pods
At first, when the rules for us little people go away, it'll be chaos. Then, amongst the rioting and looting portion of the population, there will come the understanding: "See, this is why we can't have nice shit."
The members of fight club are without a doubt the funniest fuckers on the planet, and nothing is funnier than a good doom story landing on slopes! Add those two together and I laugh so hard I cry.
We have warlords. Just the other day:
Either:
1. The cops set up a sting and greased 9 bikers.
2. Or we had a false flag where no one died because there is no video evidence or any evidence of a shoot out.
The PD cheif is your local war lord.
As noted financial observer, Bugs Bunny, would say:
"Who could have pwedicted it?"
With only a 1.4% float, this is either Billionaire Chimp-out (HK Insider Edition) or an extremely mismanaged company to allow such a crash.
hoocoodanode?
that's coperighted!
Shhhhhh! I'm huntin' wegiswaitas!
Don't you mean Elmer Fudd? You should hear his rendition of "Fire" by Springsteen.
Robin Williams version of Elmer Fudd singing "Fire" too funny.
You are pwecisely cowwect!
You dont really lose it if you never had it. "Paper gains" have a tendancy to turn into "paper losses" if you dont take profits.
Take that paper profit as fiat paper!
Put all your eggs in one basket, that's the winning strategy!
Hu Phlung Dung.
and thats why I own only one stock, it makes calculating my losses so much easier as a percentage of net worth !!!
It was the guy selling bananas! He did it!
And ladies, remember, never make eye contact while eating a banana.
pods
Or a corn dog.
https://youtu.be/7I95IFwxkrY
You fucker. How dare you present such vile trash in such a venerable forum as this. Who ever made that video should be shot (right after the applause dies down:)
They didn't lose fuck all.
Thy never had it in the first place .
All he had were some fucking bits of paper that culd be ascribed any value from zero to what some dumb fuck says he will pay for them.
If the dumb fuck decides to grow some brains and not pay a fucking fortune for his worthless tat,
Well he still has the worthless tat he had before the dumb fucks arrived.
Then vanished
You sir, are a fucking wordsmith. Bravo.
He look, a SEC meeting.
What you mean, stock market is SROT Machine?....
The Chinese aren't going to take this sitting down that is for sure. The S&P, Dow, Nasdaq and even the Russel are in a far bigger and more massively huge irrational exhuberance bubble. The international banksters and its union the Fed are protecting them by using regulations and by closing off the market to only a few trusted sources. Its only a matter of time before China, Russia and anyone else the banksters have wronged find a way to fight back.
When they do find a way to fight back we are all going to find out just how much of a Ponzi racket that our system is truly based on. I'm just surprised that the world even listens to these banksters and take them seriously. They have no real money and they cause nothing but pain for everyone. So it would be in everyon'e best interest to outlaw these institutions.
They just need to hire someone to point and click orders really quick!
When banks are outlawed...only outlaws will have banks. Situation stays the same.
apparently they haven't learned buy-n-hold or BTFD yet in China...
I got wiped out earlier this year. I lost billions. Now I earn 7900 dollars a week working part time from home in my shit stained undies.
E-Trade baby you all growed up?
Shankapotomous.
I believe the picture is of E-trade baby's Tiger Mom.
"You no get mirrion dorrar, you no get binky!"
If you are interested in drones check out this site www.pickyourdrone.com
But...nothing like this can ever happen here in the U.S. right? Right?? Hey!
If anybody has been observing the Hang Seng lately, it has been in bubble mania. Easy come, easy go bichez.
Wook out bewooooo
The BRICS nations problem is that they actually have a market that is more free than ours. That means that they allow international banksters more access than the Fed and its little bankster friends allow foreigners to trade in our markets. If you try to do what the banksters do (bidwacking) your order won't go through. Somehow that kid in the UK found a way and caused the flash crash lol. So for that England's banksters feel the need to set this kid up as an example. Then again England's banksters and our banksters are all the same shit.
Some folks' idea of being wiped out differ greatly from my own. Multi billionaire holds on to 40% of wealth after a parabolic 300% wealth increase has a reversion to the mean. Damn it all to hell!!, I want to be wiped out in that fashion---wiping out my ass with copious amounts of fiat, while sitting on my yacht's golden crapper off the coast of Singapore. This poor fucker, he will persevere through this harrowing ordeal.
Attack of the NWO
Both of the guys highlighted in this article had enough money to buy every ounce of silver mined in a year on the planet. I am not saying they should have. But there are more of them out there. And it just goes to show how impossibly low some metals prices are.
This dude lost 19 billion in one day and is still worth triple what he was in March and around 11 billion. What a loser!
Sum Ting Wong.
Not really, these are among the few things happening in the markets lately that put a smile on my face.
the fed will buy them
You gamble you lose....
Thank you come again.
Look at the shape of each stock pattern. Classic bubble shape. This "Anatomy of a Bubble" article would have made it evident to any knowledgeable investor that a crash was coming. The current Dow Jones Industrial pattern has the same look... as do many U.S. stocks today.
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
tight work my friend, keep it up.
Nice CRTs.
Awesome news.
"How is one to know if serial money printing means the folks doing it give a flying fuck?"
And indeed as the "new normal" emotes into a "computer" actually doing the trading while you whisper "take that fucker" and "that asshole gonna pay for that one" etc
Well, what isn't to know other than processing speed and keeping it cool?
". . . completely wiped out . . ."
aaaaaand they are still wealthier than I will ever be.
They probably don't have the invention of markets breaking to push stocks higher like in the U.S.
Still up 80%?
Mucho fiats.
Tomorrow those stocks will be up 20%. I'd buy if I had the money
What a sad news. I am so sorry for him.
This kind of thing could NEVER happen in the USA, cause TPTB would never let it. Keep buying MOAR muthafuckers...
Yes, the people in these photos are the new contenders on the "We're Going To Bury Uncle Sam" list.
When the market crashes and these guys go nuts, the toughest, most radical rioters of Baltimore will flee for their very lives from the fury of angry, cheated Asian grandmothers.
But the moral of the story remains the same: Cash in your chips and invest in yourself.
300% up and 60% down, seems a bargain to me
Anyone else smell the unmistakable stench of rotting jews? Maybe it's just a so common place stench jerk.
The Chinaman have always had a desire for watermellon. Until now there was no way to eat watermellon with chopsticks. I have a top secret proprietary method to esting watermellon with chopsticks. Iwonder if he would be interested in getting in on the ground floor with a few billion transfered to my Swiss account.
best part about the bloomberg report;
"More than 99 percent of its net income for the period came from an increase in fair value of a 27-story office tower being constructed in Hong Kong’s Kowloon Bay district, its sole property holding."
'mysterious 47 percent plunge in 24 minutes'??
Sounds like some sophisticated financial warfare to me. Wonder which hedge fund managers were shorting these stocks during this half hour?
I guess he'll have to raise rents on his properties in the US?
WTF? Nobody said it yet? Ok then:
Sum ting wong!
Grimaldus
The 300% rise has wiped out all shorts. After that who is to hold the price up ? Nobody. The crash will continue and spread to the whole bubbly market.
I read today about a man from China who came to Canada in 2007 and made a fortune in Saskatchewan sp? property markets. His benefactors in Vancouver chopped him into 100 pieces because the mansion he owned was in their name.
He's still up 60% this year. Better than my portfolio.
this is music to my ears.. it will be the "overture" to the fat lady's singing
You go now!
Did some mention the "s" word?
http://schrts.co/GR5GpK
Is there a vaccination that the billionaires can take to stop the contagion?