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Chinese Regulator Blames Ongoing Market Crash On "Rumors", Demands Traders "Act Rational"
After soaring exponentially over 100% in the past 12 months, amid spiking margin debt for illiterate farmers and housewives, Chinese regulators appear upset that their stock market 'wealth creation' model is failing hard. CSRC just released a statement clarifying why it is happening ("clearly profit-taking"); who is to blame ("The Government hopes investors can make independent judgement; Don't believe or follow negative rumors against Chinese economic development,"); and what to do next - Buy because it has "ample liquidity to meet investor needs." The regulator ends with a stunner - demanding investors "act rationally."
First this:
- *CHINA’S CSRC SAID TO CONSIDER SUSPENDING IPOS AMID MARKET SLUMP
But how is anyone going to make 500% in a month?
And then, as The South China Morning Post's George Chen explains, the blame game begins:
Recent big, rapid falls in stock market is naturally a result of profit-taking -Chinese regulator CSRC spokesman statement tonight
CSRC spokesman: rapid correction won't do good to healthy, stable development of stock market; risks of margin calls are still under control
CSRC spokesman: No change in general situation of stock market; it still has ample liquidity and meets demand of investors' asset allocation
CSRC spokesman: Chinese Gov will continue to open up capital markets and welcome foreign investors for long-term capital purpose to invest
CSRC: recently some negative, irresponsible rumors in market against China's achievement of economic reform try to shake investor confidence
CSRC: The Gov hopes investors can make independent judgement; Don't believe or follow negative rumors against Chinese economic development
- CHINA'S CSRC URGES INVESTORS TO BE RATIONAL ON MARKET
Yep - looks rational all the way...
Acting rationally? So is the CSRC urging investors to keep selling a market that is trading at a 50x P/E?
In conclusion, Chinese regulator just blamed market rumors for main cause of recent stock crash. Foreign interference again after OccupyHK?
And finally there's this...
- *CHINA MAY CUT STAMP TAX FOR STOCK TRADING: ECONOMIC OBSERVER
Because that's exactly what is holding them back!!
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I don't think it's fair to blame this on Fleetwood Mac.
How about Beatles?
"All I gotta' do is ACT RATIONALLY"
Yes, act rationally, like those Americans do....
And for those you already haven't figured it out: EVERYTHING about today's "markets" are the opposite of rationality.
I think today is rational
irrational was what got us here
I blame it on that time of the month for the Chinese housewife traders. There is NO cure. Just stand back.
Also, Banana Guy slipped on his banana.
Also, Banana Guy slipped on his banana.
..
Offer three joss sticks to the God of Stocks and burn lots of hell notes...
Man who doesn't know, when enough is enough, will never have enough. (and lose everything.)
You see? Our very own Truthinsunshine has been claiming all along that China has structural issues, when it's really just irrational traders causing the problems.
And to think that I was beginning to believe him...
irrational traders, profiteers, hoarders, merchants, capitalists, etc. Always blame the bogeyman because lots of people will believe it.
Rumors, nope. I hope this is the reality. Reality can be a bitch sometimes.
The regulators problem is not the rumors, but the fact that they aren't government approved rumors........
China, you aint see nothin' yet.
Anybody know if it's true about bank runs in puerto rico?
You are being taken dow.
Just politics, I hear...
roll with it bro
Next up - put a dozen or so against the wall and shoot them That'll make the rest bid stocks up.
The market can remain irrational longer then you remain solvent Charimen Mao!
Just make selling illegal, that's how we fix a declining market in the U.S.S.A.
Ah yes, return of the "evil speculators"...
LMFAO!!!!
Tyler, don't blame them, those are western educated illiterate officials.
"We demand you act rationally"--- Oh that should work...unreal
S&P 2072 is the line for today...
Hook up the right algo to the PBoC's balance sheet/printing press, and FUCKIN PROBLEM SOLVED. The US will happily refer you to Griffen's Citadel, or alternatively the Sack's agency trading desk, which just happens to be next to their Deathstar full of prop traders. Tell them Corzine sent you.
They should go all rational on him. With a nail gun. That might be the most rational thing to do.
the problem is that they just started acting rational
How do you say "You Got Fleeced" in Chinese?
You got Freeced?
Yu Grot Freeced
The last chart tells the whole story: it looks like a Banzai7 piece.
Insiders are also selling. At the end of 2014, insiders at 552 companies had 220 billion yuan in holdings, but this number was only 118 billion yuan as of June 26. The most famous example is LeTV.
They appearantly have never heard of a Chinese Fire Drill.
The Chinese one year benchmark rate is currently at 4.85%. For the U.S., it's 0.25%. Compared to the Fed, the PBOC has a huge wiggle room to play with if necessary. Chinese government may even allow pensions to invest in the stock market in the future. The current "crash" of the Chinese stock market is probably just a dry-run practice for better future management.
Skatin reportedly said that Russians made around 80 million online purchases in 2014, and 80% of the goods ordered came from China. With such close e-commerce ties, a faster rail link connecting the two countries would be desirable, added Skatin.
http://postandparcel.info/65906/news/china-and-russia-to-focus-on-expres...
China has its woes but I would not underestimate them since it's still a tightly regulated gubment and despite all their corruption they have built a heck of alot more shit -- roads, rail, airports, etc -- then we have the past 10 years.
TURN THOSE MACHINES BACK ON!!!
Reminds me when Richard J. Dennis commented to the Drexel Burnham Lambert sales force on a blow-up of a public fund he ran that "the markets behaved irrationally"!
lol> You must act rational or your daily chocolate rations will be halved...
Respectfully,
PBoC, PLA, & Dear Leader
Central Planning, d'oh.
Up 100% last year, down 22% this year. But it's a large economy, relatively speaking, so it will have an effect.
You think a gigantic, naive bureaucracy like this is going to be the next super power?
Why not? It has been that way for decades, if not longer, in the US.
This is what I love about ZH. The conspiracy nuts bounce back and forth from the government is incompetent, to it's a super competent black flag machine. It can't be both, so which is it?
But I thought the most successful traders actually displayed psychotic tendencies.
Why should traders act rational when CBs are stealing all their money by acting irrational??
They're jus' doinnnn' what comes NATURALLY!
M?i t? m? de jìn
BTFD!
Only implement "buy" orders and to the moon and beyond we go. There is no telling how high the markets would go! Who says you have to be irrational. Ingenuity is the word fellas.
Buy or gulag.
HA HA RATIONAl AND IRRATIONAL.
HA HA HA ZERO HEDGE
I guess after the stock market "Yin" comes the stock market "Yang". Sounds rational to me...