This page has been archived and commenting is disabled.
When The PBOC Went All-In: China Stocks See Biggest Intraday Swing In 23 Years
Having thrown the kitchen sink at their collapsing ponzi-scheme of a market in the past two days, only to see stocks open and crash once again overnight, it appears The PBOC went full intervention-tard in the middle of the morning session. With CHINEXT down over 7% and Shnghai down over 4%, the manipulation was rooted in CSI-300 futures as while cash markets saw margin calls and liquidation, futures were surging. By the close China's 'Nasdaq' had ripped 13% off its lows and the broad market's intrday swing was the largest since 1992... The PBOC's got your back.
In the last 2 days, PBOC has thrown everything at the ponzi-fest they call a rational market. An RRR cut, a Benchmark rate cut, a rev repo rate cut, a CNY50 Bn rev repo injection, a stamp duty cut, IPO halts (cut supply), and last but not least permission to speculate with a reassurance that shares on a solid foundation.
The result was this...
and this...
Something had to be done!!
And so to avoid the social unrest they know is coming, "someone" was on the bid in CSI-300 all day and by the middle of the morning it was bleeding into cash markets, dominating their liquidations...
This is the biggest intrday swing in Chinese stocks since 1992. The question we are left with is, when will China start QE directly? and given the flatness of the close, it appears sellers were matched with central bank buyers.
Once again - without the help of Central Banks - the fate of the world is left to illiterate Chinese farmers and Greek grannies... time to buy stawks.
»
- 23050 reads
- Printer-friendly version
- Send to friend
- advertisements -
Governments have learned their lessons well from the Fed. Stock markets are the wealth generators for nations now. So must be protected at all costs.
The Chinese stock market had generated $6 trillion in wealth in the last 12 months - about 60% of Chinese GDP. That fast, easy source of wealth cannot be given up easily.
How many Kevin Henry's working for the Chinese government now?
"Markets".....
Market in reverse is Tekram meaning . ... You do not crumble under pressure, you always stay true to yourself.
Three Stooges Do China
And who knew that all this creation of new currency was bearish for precious metals...
IN YOUR FACE BULLARD!. That's how it is done. Pay attention and you might learn a thing or two.
doesn't the chineses govt or its people understand they are not investing in chinese industries per se but in the failing world economy?
time for everyone to start circling the wagons. pretend and extend is now a net loser.
Caption: "Life was so much simpler when we were killing capitalist dogs in Shanghai in '76."
"Momma don't let your commies grow up to be capitalistas"
Don't let 'em pick guquin's and drive them old Ox...
CSI-300 Never seen that on a menue! Normaly A for 2 or B for 2
or is the CSI-300 all day Menue
The Chinese are aggressive gamblers. I could see the plebes piling on and running it back to the highs, only to get donkey-punched and dragged back to new lows....
These women all thought they were in Macau betting on the women's World Cup.
I always love the pictures when the markets are down. Everyone always has a hand or two on their head. Don't want stocks to crash? Don't bid them up to 15x their value.
The Wu Flung Pu Put
Do Not Forget, Ladues and Gentlemen, today is June 30, End of Quarter
TPTB Will Go to ANY Lengths to Make a Nice Quarters End
Big, volatile swings usually occur right before the BIG crash.
It's been more or less~ three days down, 1 day up since it started tanking. Tonight should be a bloodbath
yeah, it's like a top-fuel dragster that loses the back end at top speed...first a wiggle right and a wiggle left to correct, but the over-correction causes a bigger swing back to the right and then a larger over-correction back to the left. Next thing you know that fucker is sideways, barrell rolling down the track and exploding in a ball of flames at 300 mph!
Time to pull the rip-chord and eject, bitchez
Part of being the global reserve currency is that you do not have violent market swings like this. The Chinese mistake was to let the bubble inflate in the first place.
Correct NoWayJose........................Hockey Sticks ...............not allowed
Knee pads required
Yes window dressing is big today.....
All these years I thought that productive work was the key to capital formation. Now I see the truth! Central banks can simply create money, eliminate risk and buy the fucking dip. If that fails they can, ban short selling protect criminal banksters and sieze bank accounts.
All is well!
True, there r no more "markets" so instead of complaining about the government "put "in each country, take advantage and BTFD. To do otherwise is stupid.
Biggest myth in probably all of global economics is the Chinese leaders know what they're doing.
Sure, they 'know' how to hide shit and make up stats, they also know how to get short term boosts for anything they want, but as for long term planning - they're probably worse than the West, which is saying something.
Yes, the Chinese 'miracle' has been impressive, but at what sort of long term cost? That is what we're going to find out over the next severl years.
One area which has a chance of bringing down the whole damn country is the effect of polution. it's such a big problem in China its fucking scary and polution NEVER goes away, it lingers and ONLY gets worse if not tackled. That can't be cleaned up with an Alt-P type command. Takes years, massive amounts of work and probably trillions of USD.
See, the Chinese are just like all of us, we love the short term high, we don't like the long hard sensible slog. Tortoise and Hare basically, we know who won that race.
Chinese miracle = the same old Japanese strategy, warmed up again, and stretched out to awkwardly fit a country that is about five times too large for that to work well enough to enter the first world. The rest of the world simply doesn't need that much junk produced.
When governments can print all the money they need, they automatically own everything. We are simply waiting for the paperwork to clear. The only reason they don't claim title is that as long as they can make us believe we still own it, they can make us pay taxes to keep it.
The Grand Illusion
china is not a greece`monkey[!]... that doesn't believe in working or paying its fair share of taxes. this also applies to america, with its welfare and foodstamp socialist play! seriously folks, whose feigning the socialist commie now?
mao said when asked about capitalism-- it would be bad china? butt[t], he knew he would have to drink from the poison`d golden chalice of progress to bring china into the 21st c..
today, they have the most modern and best[test] infrastructure
/ manufacuring /aricultural, and military in the world... second to no one!?!
china has foresight....
this is but noise! a hiccup-- BECAUSE ? indigestion!
I'm guessing you've never seen how Chinese peasants actually farm, when you say that Chinese agriculture is second to none. A lot of those guys are literally still using hoes to break the ground. The little farming plots are patchwork and often terraced on several levels, making a huge combine pretty cumbersome.
I go outside my flat and ten minutes away, I'm in the Shanxi farmland, so shut your whore mouth and don't tell me I'm wrong.
right back at ya dimmwit!
did ya ever hear of the amish people in hershey, [region/vicinity] pa., ussa?
i thunk once that the great province of xinjiang was once a part of the british`raj in the 18th /19th c.. why mention xinjiang? it is lanscape similarlly to shanxi in the nw provinces. farming was difficult [?] ...cause and effect[ation] climate and unforgivines[ting] plateaus and stubborn terraces?
why i mention amish people is they refuse to modernize and prefer's simp`life as due's paid cause its always a guarranteed harvest.
thunk irrigation and husbandry dipshit!
shanxi farmers are unique people with tremendous psychological mystique of the past and proven harvest. they live within their means and prefer simplest of lifes necessities. only few hectare of shit`zu land makes for bountiful life... ! these are the people that mao loved and faught fer to defeat capitalist pig chian kai-shek[le$] now taiwan under protectorate of ussa as is japan/ phillipines etc., etc.. http://en.wikipedia.org/wiki/Loess_Plateau
DN z UR andAsshole#1
China operates on a mass rumor mill type economy. Fads sweep over the populace quickly and without question. This happens for brands and cars and trends of all kinds. When something is "hot" it is on fire, and gets the attention of EVERYONE and it goes to the furthest extremes you can imagine. Once it's no longer a fad, it poofs out of existance.
The market is suffering because the rumors are now flying that everyone is selling, so everyone wants to hurry up and sell to book their profit or limit their loss. Of course, this is when the smart money is starting to buy back in. Inside traders are the rule rather than the exception. Stock tips are shared through the grape vine and there are generally enough morons who treat them as good as gold that you can generally just dump some cash into them and make money... there are always more suckers out there.
The fad built up, it got red hot, everyone decided they were a stock picking genius, and now it has popped and everyone is "getting out while the getting is good". For the government to turn it around, they need to convince the public that it will go back up and that lots of buying is happening. Once that happens, it will shoot up past 8,000. If that fails to happen, it'll probably go back down to 2000 or so and the money will turn to other outlets finding a new fad.
It's as simple as this: those in control of the CBOC and whatever other entities have engineered this are PERSONALLY invested heavily in this bubble. Probaby levered up yesterday in some too-hard-to-resist insider trading, right before they moved the markets back up. This bubble has some more frothing to do.
This is what I assume as well. No chance TPTB let this happen without a fight, they're personally invested in keeping things from crashing.
If the dead-cat bounce is THIS big, you can just imagine what the next leg down must look like.