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Chinese Stocks Crash Most In 19 Years, Re-Open Limit Down (Despite PBOC Hail Mary)
Carnage...
- *CHINA STOCK PANIC SELLING TO CONTINUE, CENTRAL CHINA ZHANG SAYS
This leave China's CSI-300 broad stock index futures up just 7% year-to-date...
- *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY MAXIMUM 10% LIMIT
- *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY LIMIT FOR 2ND DAY
- *HKEX DROPS AS MUCH AS 7.3%, MOST SINCE SEPT. 2011
- *SHANGHAI COMPOSITE INDEX EXTENDS DROP TO 7.5%
- *SHANGHAI COMPOSITE HEADS FOR BIGGEST 3-DAY DROP SINCE 1996
Carnage-er...
- *CHINA'S CSI 300 INDEX FALLS 3.4% TO 4,190.3 AT BREAK
- *CHINA'S SHANGHAI COMPOSITE FALLS 3.8% TO 4,035.48 AT BREAK
- *CHINA'S CSI 500 STOCK INDEX FUTURES EXTEND LOSSES TO 5.7%
- *CHINEXT INDEX PLUNGES 7.8% FOR 3-DAY 20% SLIDE
After The People's Daily proclaimed... "investors were moved to tears" thanks to the PBOC's actions...
- *FOUNDATIONS FOR A-SHARES ARE `SOLID': CHINA SECURITIES JOURNAL
- *CHINA STOCK MARKET TO HAVE 30 YEARS `GOLDEN AGE': SEC. JOURNAL
The bounce is dead. CHINEXT - China's tech-heavy high beta 'Nasdaq' - is down 5-6% today, 19% in 3 days, and 33% from highs in early June...!
In 3 weeks, it has given up half its gain of the year...
* * *
All that pent-up demand to be ignited among the farmers and housewives of China thanks to a double rate cut (RRR and benchmark) enabled a mere 2.5% bounce in Chinese stocks at the open which has now completely been erased as Shanghai enters a bear market. As The South China Morning Post's George Chen notes, the most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone. If not them then, as Chen concludes, "It's time to wake up."
Spot the double-rate cut 'bounce'...
- *SHANGHAI COMPOSITE SET FOR BEAR MARKET AFTER 20% DROP FROM HIGH
Decidely not what the doctor ordered... and as The South China Morning exclaims, many Chinese investors who have a planned economy mindset, believing government should help them, may well have a surprise coming...
The most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone.
The central bank surprised everyone with its announcement on Saturday that it will cut its benchmark deposit and lending rates by 25 basis points - the fourth reduction since November.
Meanwhile, it also decided to reduce the reserve requirement ratio at selected banks to further ease liquidity in the banking system.
The unusual "double cut" move came just 24 hours after more than US$760 billion was wiped off the value of mainland stocks - equivalent to the market capitalisation of US technology giant Apple. The reasons for the market crash are complicated, including margin calls, tight liquidity at the end of the month, and panic. Afterwards, the most frequently heard question was, what will the government do to rescue the market. Rescue? Is this really government's responsibility?
China has been through the planned economy model for decades. This is especially ingrained in the generation of my parents, who make up the bulk of individual investors. Just as everything once belonged to the government, many of these people believe the stock market should also belong to the government. So it's the job of the government - in other words, the Communist Party - to rescue the market.
Unfortunately, many Chinese experts and professors are also promoting this naïve view of the relationship between domestic investors and the government.
After the central bank's moves on Saturday, many experts told state media that they believed the central bank acted mainly to rescue the stock market, given the timing of the decision.
Suddenly, investors who felt that Friday was the end of the world - with more than 2,000 stocks sinking - began to talk about what stocks they should buy on Monday morning.
"You still don't get it? It's now like the government policy that the stock market must go up. Otherwise, why bother asking the central bank to rescue the market?" said one investor in a post on Weibo. Many others echoed his views on the social media network.
Beijing has been talking about how to do a better job with so-called investor education for years. Unless the government corrects an impression that it is a last-resort market rescuer, risks will grow in the market and sooner or later the bubble will burst.
It's time to wake up. Beijing has faced more serious challenges than a stock market that is becoming more risky. If you want to rely on President Xi Jinping for everything, then your thinking may just be too simple and too naïve.
* * *
With Central Bank bazookas seemingly un-omnipotent, the fate of the world is in the hands of illiterate Chinese farmers and Greek grannies.
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A Greek ganny (as long as its not one of those ones with the mustaches) doesn't sound too bad with the luck I've been having.
>>> "The most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone."<<<
Dunno who they've been talking to but I haven't heard this sentiment at all. At best, the concesus is that the PBOC won't allow a total stock market crash... NOT that they won't let it slowly go down significantly. In fact, many think a controlled descent suits the PBOC just fine because it puts real estate -- their much more important asset class -- in a better light.
Dunno who the SCM was polling the Yulin dog meat festival or some shit but this sure as fuck isn't any sort of concenus even for ordinary average investors.
Commie party gonna rescue shareholders. Oh the irony
China went full retard and its stock market bubble will crash and 75% of existing "unrealized paper/electronic wealth" will be wiped out, making the 1999-2000 NASDAQ bubble, the general 2008-2009 US equity market bubble look like mild corrections in comparison.
In fact, the Chinese equity markets are the greatest bubble since the Nikkei 40,000 peak in 1990.
There's going to be blood in the Shanghai Streets and mass contagion from the Chinese equity, bond and RE market implosion.
what has two wings and a halo?
a chinese telephone, wing wing.. halo.
subprime is contained!
"When the tide goes out you find out who's swimming naked."
Of course everyone sees money printing as inflationary...hence "bubbles are formed" and called "hedging."
But "fiat monies" can exhibit strange behaviors sometimes too..where so much credit and "faith" is extended the value of everything starts to fall at the same time too..
So much fraud in China, yet their stock market can still go down... guess they're not the king of fraud afterall... I wonder who is? Hmmm...
China has been through the planned economy model for decades.
... and the Progressives still don't get it!
Fundamental Transformation
BTW: Australia just might sink. Time to short the Aussie... again?
no way - we have our housing market that will save us....this baby is not slowing down to 2017...honest!
https://au.finance.yahoo.com/news/property-market-forecast-ease-2017-150...
Oddly enough, I still believe in the China housing market. There's 1.3 billion people in that country. They got to live somewhere.
Why? They are living somewhere now.
I've been asking this question for months, here.
How do you provide electricity, fresh water and sewerage to all of that currently vacant property? Development requires infrastructure. Infrastructure is expensive and complicated. It IS the main limit to development, not money. And you cannot build a corespondent level of infrastructure for all of that vacant property, and let it sit idle. It does not work that way.
I would be willing to bet a lot of those high rises are connected to an extension cord, garden hose and port - o- pot.
Think about it.
Maybe,but when the correction comes sure will be ugly.
Early 2016 my best guess.
Bubble? Meet pin. Pin? Meet bubble.
So, the Chinese Market has regressed back to where it was three freakin months ago and that's considered a meltdown!!
Just wait until the US Market realizes, that since Greece was never fixed, and in fact is worse now than it was in 2008 when the market priced that in and hovered around 10k (rounding). They way I calculate it, we need a 40% correction with the realization that all the "it's fixed" pretenses were wrong.
The Shanghai will fall another 40%, minimum, and most likely another 45% to 50%.
The Chinese equity markets are comprised of so many shady, fraudulent sham companies, that it's literally impossible to overstate the extent of the pyramid nature of their gambling hall equity markets.
Yellen & Draghi are probably relieved that equity markets are going to break in a manner whereby they won't receive the blame.
Excellent posts as usual Truth. I'm hoping to catch a glimpse of of those who have cheerleaded for the Chinese over loads down below in the post tonight.......crickets? What, no new reserve currency playmates?
IMHO, just wait till fall when the currency swaps dry up, if you think it's ugly tonight........
Now, to all you Liberal technocrats who cheered for NAFTA and all the other word soup bills you have positioned to suck jobs out of this country by your bankster overlords in favor of these parasites, get you some you cocksuckers!!! You dumb MFER's.....
HOPE!!!! HOPE AND CHANGE!!!!
It will go down.
Its the ruling gangster CCPs idea to give the ruling families thier money back. Those serfs who have slaved in factories put life savings into debt ridden family friends companies. Companies debt problems solved. Serfs yet again shoulder burden.
Chinas power is its infiinite population of ignorant serfs for factory work, mao idolotry, xi adolatory, stock market company refi.
Stand buy to watch the correction. Now remember all this money came from somewhere. And the answer is a transfer from the serfs to the famlies. yet again. Money will go puff, but after families pocket gazillions to go and buy up Australia.
far far faaar more Chinese, including wealthy business owners and real estate investors, are OK with this than those against
precisely because they know the stock market went full retard
i'm constantly surprised how many factory or real estate owners i've talked to that have shown zero interest in the stock market. to a fault, even... because fuck they should have at least tried to make an easy 30-40%
but this notion that a stock market crash is impossible in some sort of public sentiment is incredibly misguided... probably as a percentage of population, more Americans own silver than Chinese own stocks lol
the FAR bigger PBOC concern from a stock market crash is not retail investors but corporations that used the stock market rise (and therefore bond yield rises) to become more reliant on issuing debt-back securities, REITs, and other investment instruments, or even invest in stocks with their own corporate portfolio
which isn't to say the stock market will be allowed to totally crash. and i've been somewhat of a SSE defender here by ZH standards. defender in so far as I've defended 'riding the wave' while there is a wave. but really, a casino full retard stock market is NOT in the interest on the PBOC. it's not bad per se because a GOOD stock market is a great distraction from the real estate market but they have no interest in a full retard market that begins to actually displace real estate investment, or, ffs, farming (to borrow one of ZH's fave quotes) so the PBOC doesn't want a total crash and chaos in their market but they also don't want full retard bulls either. you'll probably see them use their relative-to-the-west ample PBOC tools to try stabilize (relative to Chinese volatility, not western volality) and rather than make in great/horrible just try to make it 'good enough' to be a 'distraction' from real estate, corruption, manufacturing, or whatever other issues would be served by being overshadowed be the stock market.
It will certainly wash out the speculators. How much Western money in the Chinese market?
prob fuck all lol
it's a serious fucking pain in the ass to even get money into china because of stuff like FINTRAC here in Canada; for all the bs hype about the outflow controls that PBOC, it's far easier to get money out of china than in (even as a Chinese)... but then for a foreigner. to begin, you can't directly. then it's an effing hassle just to transfer money there to an account that even could theoretically. and that's a fucking hassle cuz you can't do it directly. you gotta use an intermediary in effing hongkong and then buy SSE stocks through the HSI
I see. And thanks. What about foreign companies or banks doing business in China through relationships with Chinese companies? It's hard to believe the big banks haven't found a way.
Disappointed if there's no contagion, suteibu?
This will hurt all companies like Walmart, Yum Brands, Kraft, car companies...
Sydney, New York, California, London, etc, real estate.
And actually, who knows what Chinese will do to the trillions in other stock markets that they assuredly have smuggled out the opposite direction. I wouldn't rule out a slow contagion.
I have no expectations, so I can not be disappointed. I was simply seeking information.
What's your interest?
Well hurry up and buy!
https://youtu.be/KIk0abbYgXQ?t=30s
Right. On. Schedule.
Host a Summer Olympics as a totalitarian, central planned, one party police state and nine years on said regime will go down the rat hole into the dustbin of History.
Nazi Germany: 1936 Olympics 1945 GONE
Soviet Union: 1980 Olympics 1989 GONE
China: 2008 Olympics: 2017. Put in your calendar.
The only hiccup in the theory is Los Angeles 1984.
Oh, wait, what?
Did you forget 2004 Greece?
… what about JAPAN - 2020 ?
Mexico City 1968...
Que pasa a la peso?
Gone Daddy Gone
Love has gone away...
https://www.youtube.com/watch?v=ekL7o8BQkZM
As the party rolls on...
Illiterate Chinese Farmer slams Greek Granny in the Fanny!
Porn for the new millenia!
"In fact, the Chinese equity markets are the greatest bubble since the Nikkei 40,000 peak in 1990.
There's going to be blood in the Shanghai Streets and mass contagion from the Chinese equity, bond and RE market implosion."
Like a Yulin doggie would say: "Ruh roh!!"
The West wil sell the East the derivitives with which they will drown themselves,
or something.
Newly revised Chinese local govt debt = $2.6 trillion (USD)
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20150627000085&c...
Ho Lee Fuk
Wei Tu Low
Sum Ting Wong
No Long Dong
Fuk me nao
the timing for the chinese population to get bullish on the stock market is laughable.
2015 will be remembered as the year the entire world began its descent into hell.
EAST WEST COMMUNICATIONS
http://i.imgur.com/aTucOFO.png
http://i.imgur.com/aTucOFO.png
http://i.imgur.com/aTucOFO.png
how do i link to an image so it shows
Can they not clone a few hundred Kevin Henrys to save the Chinese markets? How about cloning a few lying members of the Fed?
Failing that, China can always ban short selling of stocks for a few weeks.
NO DOLLARS FOR YOU!
Long Panda Express.
It look like the dead cat bump.
We're gonna need more porcorn and beer. Fun times to watch the greedy assholes panic.
Hey! I am greedy asshole and I'm not panic!
If China wants to be taken seriously by the world, as an alternative to Wall St, they need to stop playing Footsy with the US/Fed, and come out with a Gold Yuan (backed 40% with Gold).
Until then, I wouldn't trust their Markets as far as I can spit.
Why not Canada????
Unlike say...THE UNITED STATES...
CANADA ACTUALLY HAS GOLD!
Dude, Canada is as fucking bankrupt as any western nation, and more than most, with a devastated manufacturing base, and now a debt-to-GDP ratio that will rise massively as metals, oil, minerals, lumber, natural gas and other natural resources get slaughtered.
So just print more Loonies is the answer?
I mean, hey...everyone else is doing it...what the heck could go wrong, right?
They've begun doing that, and the CAD has fallen 25% vs the USD in the last year.
They need to do much more devaluation of their currency to stem the bleeding in their manufacturing sector, especially now that natural resources are not bring home the Canadian Bacon.
Canada & Australia are in eerily similar economic & financial positions, with one relying mainly on the U.S. for its fortunes, the other on China.
Both nations are precariously perched on the cliff's edge.
In Straya's case its terrifying how badly managed we are, run by a certified Mad Monk on one side and on the other the Greens/ Labor alliance that could not run a school canteen. The Pay as you go workers are screwed every which way they go.
Need to be fully reset and the power given back to Engineers, Surveyors,Scientists and Hard Men who know how a dollar is produced.
1959 - the year Australia died (not that we ever really lived to begin with. We have always been "more British than the English"). The year that the Reserve Bank Act was (probably illegally) singed and our right to money was replaced with banker issued currency.
Not one mention of our booming housing bubble? Ya, we're fuccked
Not one mention of our booming housing bubble? Ya, we're fuccked
Kirk, gotta say you are not thinking straight. Gold as a reserve backing is only legit if the entity running it is honest and honorable. I laugh when I hear this bullshit. Who is gonna run this future Gold backed currency ?? The Chinese, Russia, the new Bric's version of the IMF?? Seriously, COMEX and LBME are outright lying thieves, and every financial structure in the USA and Europe is corrupt to the core. I definitely do not know the answer, but I do know with 100% certainty that every government and financial entity that are currently running the show are lying cocksuckers, and that must be taken into account when doing business with them.
Maverick
China now finds itself exactly where Japan and Europe find themselves...namely in the throes of a liquidity trap.
All three are MASSIVE economic Superpowers and all three are executing on Beggar Thy Neighbor economic plans thus "digging the hole deeper."
Good luck being long commodities for the next thousand years...
Decisions Decisions.. do i stay up all night and eat popcorn, and watch it unfold, or do i go to bed early and start drinking in the Morning.
Just stay up all night eating popcorn and drinking. You can find out what is going on between delirious tremens.
Same dilemma. Do I get to see a hat trick tonight...Greece, Puerto Rico, China (or some other nation)?
Tomorrow's opening is one I don't want to miss and I'm on California Time. That's freakin' early for a non-morning person.
...
Beer check
Cigs check
(Hate popcorn)
Pistachios/Almonds check
Piss rock outside check
Guess it was a bad day to quit smoking Hopium...
China is so fucked.
Yeah...So is the rest of the Globe.
We are gone.
Turn Out The Lights...The Party's Over
Willie Nelson.
https://www.youtube.com/watch?v=QoQZ0qmf-mk
We to low.
Where went Jiabao?
Now see Jinping:
Prop up my thing!
Maybe if 'ignorant' farmers and Grannies were running the show we wouldn't be in the mess the over educated economists, shyster banks and prostitute politicians got us into.
Economics is simple. You can't spend more than you bring in. Farmers and Grannies know that all too well.
They always divert attention away from themselves, don't they?
It's long past time to put an END to 'divide and conquer.'
It is now time to 'draw and quarter'...BANKSTERS.
Just change the name of the IMF to the
URF'ed...that's all we need to do..
"You can't spend more than you bring in. Farmers and Grannies know that all too well."
Is that why farmers have been using 5x margin to buy Chinese stocks?
Who is the bigger fool?
The farmer who 'invests' in stocks.
Or the loser who loans him money on margin to make these purchases?
That is like a lender (credit card company) giving cash advances for people to play in a casino or hire hookers at the'Ranch'.
I don't feel sorry for that bunch at all.
Collecting on that Debt is going to leave such a mark, that even a Chinese Laundry won't shift.
the only real question is at what level does the pboc step in and start buying.
If you're not inside, you're outside, OK? [/Gordon Gekko]
Until the NY open at 9:30AM tomorrow the only market open for business is the market for dollars.
That is the only trading I see going on right now...which might be true for a long tIme i might add...
All according to plan.
i think just about everyone in china were banking on msci being the "grater fool" to which they can sell to ...
There are no banks in China...
..."the reasons for the market crash are complicated, including margin calls, tight liquidity at the end of the month, and panic"...
What's so complicated about PANIC! ??
Remain calm, buy it when it's down - remember, $21 trillion Chinese deposits has no where to go.
Those poor Chinamen.
No mattresses.
You go away!
You come back!
4.85% is a lot of interest rate for PBOC to cut - buy the dip!
my condolences... revolution is coming..
What's terrible... I hear a lot of the supposed suicides back around when the market crashed before the Great Depression there were caused by people going on margin and finding alternative ways of borrowing to gamble on the stock market.
Here's one like that earlier this month:
“Before leaving the world, I wish to say I concede defeat. With capital of 1.7 million yuan and four-times margin, I bet the entirety on China Railway Rolling Stock Corp (CRRC). I have only myself to blame, nobody else.”
So reads the suicide note left by a 32-year-old stock market speculator from Hunan who jumped to his death in early June after losing his life savings within two days. The man took out a huge loan worth four times his own capital from a ‘grey market’ lender. Believing the government’s gargantuan ‘One Belt, One Road’ plan was a sure fire bet, he staked everything on the state-owned railway carriage builder. Source
Illiterate Chinese farmers, Greek grannies AND lazy Puerto Rican's. Fixed it Tyler...
Canada has lots of gold in the ground but very little in foreign exchange reserves!
I suppose this gold comes under the heading "Deep Storage."
Most Chinese have known nothing but a bull market in equities. Hopefully the expensive education they are now getting will make them smarter in the future. I wouldn't hold my breath that they will learn anything. When a new generation comes around, they make the same mistakes as the older one.
People's memories are so short. They never learn. Exactly the same thing happened in China June 2008.
Looks like it would have been better for the retail Chinese investor to stay out of the stock market. 33% is a huge chunk of cash to lose it you don't have much. I wonder if the western banksters weren't behind this as a way to destabilize China..
Japan Redux ...and all because people believe the fantasy that there are free markets in this world.
It's serendipity for the Western bankers and politicians. The timing is merely coincidental.
Why...it's almost like God is taking America's side. Like...like...Manifest Destiny.
Isn't that the coincidental truth there suteibu....
Just in time, the Greek contagion, the Chinese contagion, the Euro contagion, the Rouble crisis....anything, anyone........just so there is no Wall Street contagion.
Bustards...
Should not have legalized Gay Marriage.
Given that your positions are not leveraged yes. But, as we all know, most investors are no longer not leveraged so those losses are guaranteed to be considerably more then the "mere" 33%.
Given that your positions are not leveraged yes. But, as we all know, most investors are no longer not leveraged so those losses are guaranteed to be considerably more then the "mere" 33%.
<=== Short beef!!
<=== Long cat & dog!
The kids never listen; not that the Chinese are children simply that they do not have as much experience with the criminal banking element.
"It's time to wake up."
True on a global scale.
Time for Xi to stand up and be a true leader....not a Jean Claude Juncker wannabe.
Full collapse!
The promise of a "30 year golden age" sounds like even better than the "permanently high plateau". What can go wrong?
I don't claim to begin to understand what is going on with the corruption in China and the factions vying for power there, but if it's not the big bank faction in control they may decide they prefer not to wait for the Zionists to pick the timing of the collapse. If I was them and I had the ability, I would try to implode it early.
Interesting thought. Well done.
Thanks. ( :
Don't thank me, you're the one doing all the thinking. What else you got up there?
Oh, not much. I was just sharing a story about a hermaphrodite I met in a McDonalds once...lol
I read that. Very strange.
SUM TING WONG !! HO LEE FUK !! BANG DING OW !! WEI TU LO !!
Issue global bounties and arrest warrants for Blankfein and Dimon now.
BUY when it down another 40%
It's just like when an airplane tries to climb too fast, and loses airspeed, stalls, and falls.
If they can point the nose down, they can gain airspeed, and try to climb again.
HA HA HA
I TOLD YOU I SOLD ALL MY STOCK last week
HA HA HA
GOT THAT DEAD RIGHT
Two weeks ago would have been better.
If the PBOC had tried a Hail Confucius instead of a Hail Mary, maybe it would have worked.
According to Macquarie Research:
http://personal.crocodoc.com/lHeFs3w
China drama & Greek farce
Are Central Banks at the end of the road?
Greek and Chinese dramas question role of Central Banks…
- The latest developments in China and the Eurozone inevitably invite the question whether Central Banks are coming to the end of the road. Given the limited impact of their policies on real economies with stimulus largely being confined within walls of financial assets, has the time of reckoning finally arrived?
- As discussed in the past (here & here), the only sustainable LT outcomes for the over-leveraged and over-supplied global economy are either: (a) allowing the deflationary cycle to go through, thus eliminating global excess capacity in service and merchandise economies; (b) elimination of excess debt via some form of hyperinflation and/or co-ordinated debt cancellation; or (c) banning capital markets via nationalization. Given that neither of these alternatives is attractive, involving pain for either borrowers or savers; intergenerational transfers or courting sharply lower ROIC, CBs would rather kick the can down the road in the hope that a solution would be eventually found.
…and should CBs place monetary policies in neutral gear?
- PBoC’s half-hearted attempts last week to slow the pace of appreciation of the equity market have inevitably and predictably resulted in severe correction. The double-barrel reduction in interest rates and RRR on Saturday is a belated realization that it is courting a significant economic backlash. As discussed here, we do not believe that China’s de-leveraging is either possible or desirable. Having reached leverage of ~3:1, any debate about the evils or virtue of debt has passed a long time ago, and the only viable choice from now on is to continue leveraging, though perhaps at a somewhat slower and safer pace.
- In order to continue leveraging, PBoC has to make sure that: (a) there is no sharp correction in any of the key asset prices; (b) at least some asset prices are appreciating; and (c) there is no further contraction in nominal GDP. This requires a combination of exceptionally stimulative monetary and fiscal policies as well as trust that a country is not yet in a liquidity trap and that it is capable responding to stimulus in safeguarding nominal GDP. The game is no longer about reaching 7% real GDP growth but avoiding zero nominal GDP.
- The same dynamics are playing out in Europe. The battle is between politicians who have not yet grasped that deleveraging is no longer feasible, and the ECB, which is fully onboard. Whether Greece is allowed to exit does not alter the basic argument that the numbers do not work, unless leveraging continues.
China is at very early stages of stimulus
- We maintain that China is at an early stage of significant (probably the largest globally) stimulative action. We expect that over the next two years, RRRs would be reduced to historic levels (i.e. 5-6%); interest rates would be lowered to zero and fiscal spending would become much more aggressive (including multiple banking re-capitalizations). The only question is whether China would send a massive inflationary pulse through global economy or would aim for more moderate impact. Initially, the PBoC would be aiming for moderate outcomes, ensuring support for asset prices but avoiding more disruptive action. However as we progress into 2016-17, more drastic actions might be needed. In the meantime, we remain O/W MSCI China, as equities remain the least systemic asset class that can be leveraged, at least for now.
What do you call a Chinese Billionaire?
Cha CHING!
when the musicians come back from the bresk, you've got to dance again.
Historians will be the only ones who understand China's "RACE TO THE BOTTOM" was about exposing the systemic risk in Western markets and claiming economic world dominance. China can correct just fine. Western markets cannot.
This concept is similar to Reaganomics where the US went on a military spending spree and Russia tried to keep up but went bankrupt in the process. Only this time, it's not spending. It's a challenge of who can recover from a significant market correction.
China makes stuff. They have a lot of undisclosed gold. They have lots of assets... entire cities waiting for an up-and-coming middle class. The US conversely hardly makes anything, refuses an audit of it's gold, and has a crumbling infrastructure. In addition, China finances much of the debt in the US. What do you think will happen when China stops financing this debt and floods the market with it's US dollars?
Today's global markets are connected. Derivatives create significant systemic risk. We may be witnessing the second financial collapse. And this time around, it will make 2008 look like a dress rehearsal for the MAIN EVENT.
“China is a sleeping giant. Let her sleep, for when she wakes she will move the world.”
-Napoléon Bonaparte
The giant has awakened.
Jesus, who saw this coming? LOL
BULLSHIT ... so this is what ZH was created to do. When the time comes, to become MSM and misdirect with propaganda.
Both the Chinese and Greek situations are bank planned and executed actions. The Chinese farmers and Greek grannies have nothing to do with what the bankers are doing to the world.
Oh, yes, and by all means give more money to the Ukraine, ISIS and drug cartels. What the world needs is more propagandists, scapegoats and criminals to make the case for a war that no one wants.
And ZH is right there.
The Chinese love to Gamble, they simply moved from gambling in Macau to gambling on their own Stock market, with the complete confidence that if it all goes wrong the Cjinese government will step in and fix everything somehow.
They will. Last I checked China has helicopters and printers same as the USSA.
Get to work Mr. Xiaochuan
Ali Ba Bye Bye.
Exactly what does "open limit down" mean?
Fate of the world now in the hands of illiterates and grannies because the bank sharpies running the world got us into this mess.
wait til the margin calls come
"some folks are selling against their will"