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China Politburo Opines On Market Crash: "Black Friday Massacre"
Big trouble in big over-leveraged China...
China's Politburo official mouthpiece Xinhua summed up the bloodbath in China in one tweet overnight...
Again?Black Friday. China shares dive 7.4%?worst single day loss since June 10, 2008. pic.twitter.com/6Pyvns287s
— China Xinhua News (@XHNews) June 26, 2015
Which is odd, since just a month ago, another mouthpiece noted an "authoritative insider" pushing investors to save less and buy more stocks "as economic downside riosks were well managed." China Daily, a month ago, quoted an "Authoritative Insider" pushing the average joe Chinese citizen to save less and speculate more...
He stressed that investment has a vital effect on economic growth: “Seen from the stage China is at right now, whether it can transfer savings to effective investment will be the key to stable economic growth.”
The insider also mentioned that on the one hand the Chinese people are having trouble getting sustainable property income with the high rate of household savings, and on the other hand the real economy and key construction projects lack funding. As a result, more financing channels should be explored to exploit the potential of private capital and transfer more savings into investment.
According to the insider, current economic risks are largely under control, but we should maintain a high level of vigilance over risks related to high leverage and asset bubbles.
But now, as Xinhua reports (via Google Translate),
Shanghai and Shenzhen stock markets plunged more than 7% today fall 4200, over 1500 stocks daily limit. Will this "roller coaster" market stop there? Will history continue to repeat itself? How much further will it fall after the massacre on the A-share stock market day and after.
In this rampant speculation, full of legends of the stock market wealth, wealth and opportunities and risks coexist forever; while everyone wants to share the wealth with this situation in the stock market to make a profit, we hope investors can have more risk awareness!
Local analysts are much more concerned...
"It's a do-or-die moment for all investors," said Dong Jun, a Shanghai-based hedge fund manager. "If retail investors become skittish now, panic selling will continue next week."
“I think this is a very dangerous moment,” says Anne Stevenson-Yang of J Capital Research, the Beijing-based research firm. She’s right. Not only are there the technical liquidity factors she cites, but anything could further rock confidence.
“The tide is going to go out, and there’s going to be a lot of people without their swimming trunks on,” Ewen Cameron Watt, chief investment strategist at BlackRock — which oversees $4.8 trillion as the world’s biggest money manager — said in an interview on Bloomberg Television in London. “We’re seeing it deflating quite rapidly.”
Some context...
So what happens next? Well it's not pretty... (not egreen and red are opposite in this table)
This is a major problem, as The South China Morning Post reports,
In China, the burst of a stock market bubble is regarded by the government as a risk for social unrest as millions of retail investors are retired workers who risk losing years of savings, and might take to the streets to protest against the regulator's failure to safeguard their interests.
...
Three journalists at state-owned news outlets said they were told not to use "poignant" comments about the market performance in their articles.
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Remember - it could never happen here in America...
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"investors"... "markets"... LMFAO!!! Stop it already...., comedy gold!!!
Investing in Chinese Stocks after 100%+ gains is a game for losers.
At least the Macao Casino's will arrange for 'happy endings' before they rob you blind
Yeah. Probably best to sell all, right now, before it's too late.
Ahhhh, defration, very dangerous.
pods
Banker Says Boom Will Run Into 1930
That at least a part of the great amount of money in the securities market may represent temporary employment of funds eventually finding their way into business uses, and that the prosperity of the present business cycle will probably not end in 1929, is the belief expressed by the J. Henry Schroder Banking Corporation in the quarterly review of the London house of Schroder.
— The World, March 30, 1929
China will have to get out all of their cell phone jammers to stop the Chinese housewives in the rice paddies from selling next week. No stawk news?!?!?!?!
you're assuming pboc WANTS a stable stock market....
a strong stable bull market... bull on steroids, rather, as we've seen since last fall... is BAD for the PBOC's pseudo mandate to support housing
last thing they want is people fleeing housing to the stock market
I predict that the Chinese government will panic and open the monetary floodgates. This should give us a good preview for when the USSA markets eventually crash.
please, already happened in 2008/2009.
Unlike 2008/2009 when the derivatives blew up, governments are essentially broke. No one is left to bail us out. Instead we will be bailed in.
Yes, "clowns" and "casinos" need to replace "investors" and "markets".
This might become known as the "Summer of Sadness" in China if it keeps up.
What goes up, comes down faster*...
*New proverb
It's not a crash...yet....
Wave 3 commenced!
a lot more to go
Monday will have lots of margin call sales.
Sum Ting Wong.
My broker, Buy Da Fuk Dip just called me...He said my Chinese Checkers stock is a bright spot in the market over there...1 billion Chinamen will soon have lots of time on there hands.
Winning Bitchez!
"...transfer savings to effective investment...”
Ummm, what...don't they have something like ObamaCare already? ;-)
Perhaps, this would be the most appropriate Chinese proverb....
"Man who eat many prunes get good run for money."
OK, we have heard of centrally planned rallies, but what about centrally planned dumps? How long ago was it that China opened up to international retail investment? I think it was about 2 months ago. Tut tut.
Can't be a crash, the Market is still open.
do the Chinese ever admit to a technical problem? might be a good time for something to breakdown.
I think a 20% one day crash is coming soon in the CSI 300. ASHR, CHAU, CHAD all track that. I sold my ASHR puts today because they were up 300% today but I need to buy some more. The fun is only getting started. This coming crash is going down in the history books.
The reality is that the Chinese government has figured out a new way to "sterilize" excess reserves. Much as in the US, the injected liquidity has found its way to the financial markets--after exiting the RE marketss. Xinhua represents official CCP policyt---and the exhortations to invest---followed by silence says it all. China has long faced imported inflation due to US fed policy...this is just a culling...so to speak. Bubble pops, excess liquidity outside "real economy" disappears, and policy mechanisms can resume.
Perhaps China refusing to import American Inflation may be a better policy option, FOR THEM, than initiate a policy which defrauds and steals from their own plebes?
If the Chinese are producing then why not have themselves enjoy the fruits of their labors rather than export that to the Americans in trade for worthless promises of future production by Americans?
It is long overdue that the Chinese need to transition into a Demand Economy producing plenty for themselves and taking care of their own. They need to insulate themselves from the trainwreck wholesale destruction that the American Banks have sown the seed.
China needs divorce herself from Western Central Banking and pivot toward building regional relationships. She needs to dump US Treasuries and stop exporting to a Nation that promises but fails to deliver.
I suspect "authoritative insider" was just another Icahn-like character pumping then dumping before the rubes catch on.
we shanghai'd some forks
Monday $SSEC, and $HSI will be up 8%. You heard it here first.
Chinese fortune cookie:
That wasn't chicken.
Ho Lee Fuk
Where's thier old fucking yeller?
What There is no Zhou Xiochaun put?
Install the Zhou Put and then they can all BTFD
...because the Yellen Put, before that the Bernanke Put, and prviousluly to that the Greenspan Put, has worked so well in America. It will work until it does not.
Man those Asians are supposed to be smarter than that...
Can't they see what has worked so well in America?
Sheeeeesh!!!
'Cause Xhou already knows exactly how this "Multilateral, Multipolar" party ends, as do his buddies at the Bank of International Settlements: http://www.bis.org/review/r090402c.pdf
Welcome to the big leagues China. This shit happens 'every five to seven years', quoting Jamie Dimon.
Beijing Baofeng Technologies remains at all time highs
7.4% a massacre?
Bad yes, the massacre is yet to come.
"In China, the burst of a stock market bubble is regarded by the government as a risk for social unrest as millions of retail investors are retired workers who risk losing years of savings, and might take to the streets to protest against the regulator's failure to safeguard their interests"
LOL!! Regulators to safeguard their interests? Are there regulators doing this job at any of the other gambling casinos? I don't think so.
Yeah I love how in the slime movies from Zollywood or in real life how they send a pit boss/enforcer over to a table to watch someone if they are actually winning.
Typical Hollywood brainwashing that anyone actually winning a little in a casino must be cheating or a criminal. Yet the suckers still play.
When stocks go up, capitalism is cheered, when stocks go down, communism is wished back.
~Confucius
In that chart at the bottom the yellow line goes from 20 in Feb to 170 in June. And goes back down about the same speed. Is any line goes down day a crash? Are you not allowed to play the down market in China or something?
Edit: All these graphs mean nothing without the x and y axis labels.
Back to the rice paddies bitchez.
Down 7.4% is a crash? LOL. This is considered a correction, no a crash.
Let me know when it's down 20%. This is comical.
I am glad for you that you went all in on the dip.
Yeah, he's an idiot knife-catcher.
7.7% was the second biggest daily DJIA crash on record, and among the top ten daily crashes the lowest is 5.5% so this and the other recent losses are actually a huge deal.
Idiots demanding 20% in one day before they call crash are unfamiliar with lower limits to each individual stock, which are 10% each. Overal, every stock plunging by the most allowed is a 10% maximum daily fall.
And some stocks like Baofeng are just plain halted... oh, but surely there's buyers at 500%!
Haha. Morons.
Finally a sensible comment.
They are not fucking investors, they are gamblers.
The government doesn't care if the people lose some money. What they're deathly afraid of is mass rioting and the lynching/killing of local government leaders. The Chinese people have no problem slitting the throat of any official if they feel like they've been done wrong. Right or wrong - they don't care - they're ruthless.
Has anyone ever seen a drunken Chinaman? I haven't.
They don't spend money on booze...just gambling. Ever sat at a blackjack table in Vegas? They never smile...and when they get an ace on their first card, they will slap the table as the 2nd card is dealt expecting a face card. Very serious gamblers and they expect to win. If their stock market does crash and money is lost, there will be hell to pay.
https://www.youtube.com/watch?v=iE9ZF2eA-Fc
yellen would never let that happen here. apparently capitalism died in the usa but was reborn in china the other day.
Hey just some thoughts from somebody watching this from afar.
Is progress on TTP not partly to blame for the downturn in Chinese stocks ? Investors understand that China is kept out of the 12 country TTP, so TTP is most likely not good for the Chinese exports to these 12 countries. When TTIP (the other big trade deal in the works) increases liberalization of trade between EU and US, would the whole world trade system not be tilted against China ? Containment of sorts. Only question I have, what is the economic loss the US is asking the world to bear in order for it to stay number one ? And is it worth the price ?
Maybe EU should react to TTP with a offering China better trade conditions than it offers the US. To keep the system balanced and multipolar.
I can only wish these were the kind of things my EU leaders would be working on overtime, instead of focussing on a country that represents 1 percent of EU GDP
Or maybe the US-China strategic and economic dialogue (this week) did not go so well and the insider elites decided to sell ?
I believe you overstate the impact of TPP.
It is not a done deal yet (local negotiators estimate: 70% chance of a deal), and it does not exclude China from trade with the signatories, many of which already have free trade agreements with China, and for whom China is a, if not the, major trade partner.
Or are you referring to TTIP?
it would bring joy to my heart to see a vicious sell off in us equities.