China Bans Use Of Terms “Equity Disaster” And “Rescue The Market"

Tyler Durden's picture

Although it’s not possible to know exactly what the mood is among Party officials in China regarding the inexorable slide in stock prices that’s unfolded over the course of the last three weeks, it’s reasonable to assume that at least some officials in Beijing are in the throes of Politburo panic after watching some $3 trillion in market value disappear into thin (and probably polluted) air. 

Amid the turmoil, China has resorted to an eye-watering array of policy maneuvers, pronouncements, and plunge protection schemes aimed at arresting the slide.

Nothing has worked.

Not suspending compulsory liquidation for unmet margin calls, not billions in committed market support from brokerages, not a PBoC backstop for the CFSC, and not even a ban on selling by the Social Security Council. 

For reference, here (courtesy of Bloomberg) is an annotated chart of the wild ride Chinese stocks have had in 2015:

And so, with every attempt to manipulate the market higher falling flat in the face of selling pressure from the hairdresser/ farmer/ banana vendor day trading crowd (which has now thrown in the towel on the whole “it’s easier than farm work” theory and now just wants to break even and head for the hills) the only thing left for China to do is “fix” the narrative.

In other words, when banning selling doesn’t work, the logical next step is to ban talking about selling. Here’s FT with more:  

Shares have shed some 30 per cent of their value since mid-June, punishing small investors, some of whom have borrowed heavily to jump on board what had been a spectacular bull run.


“There is a panic but no matter how they [the authorities] jump in, this thing just doesn’t stop falling,” said Dong Tao, regional economist at Credit Suisse in Hong Kong.


Analysts said the more Beijing does the more it risks creating a perception of desperation, particularly if its efforts have no discernible effect.


“All this activity has supported a view that policy makers are in a state of panic,” wrote Mark Williams at Capital Economics. 


“The financial system is about trust and transparency, but we’re not getting either from the government,” said Dee Sum, a 35-year-old banker in Hong Kong, whose family has sustained heavy losses on the stock market in recent weeks.


One domestic journalist, who did not want to be named, said the government had banned local media from using the terms “equity disaster” and “rescue the market” in their reports on the stock market.

So apparently, Beijing will now prevent journalists from accidentally jawboning the market lower so that Party mouthpiece media outlets are free to jawbone the market higher. 

Needless to say, we doubt if this hail mary attempt to rescue the market will do anything at all to save China from its homemade equity disaster.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
SethDealer's picture

Outlaw all speech that doesnt fit the agenda!! America can show you how

kliguy38's picture

CNBS banned them a long time ago............

Pool Shark's picture



Looks like lots of Chinese lost money in 'the crash that must not be named.'


Save_America1st's picture

Confucious say, "BTFD:  Buy The Fucking good today." ;-)


But stay away from this fucking Equity Disaster bitchez!!!

TeamDepends's picture

This is the commie side that China keeps well hidden now. Until it is time to do some whacking, that is.

eatthebanksters's picture

hahaha....what a fucking joke.  Doesthe government really think this shit helps?  It just makes it worse...control freaks always get shit thrown back intheir faces.  When your a pathological liar, even as a plolitcal entity, it always comes back to bite you in the ass.  I wonder if this will be the 'moment' in China where people get tired of the lies and bullshit and blame the government for what's going on.  If so it may be China's 'glasnost' time.  Wouldn't that be nice!


By the way, its 'Godzirra'!

Boris Alatovkrap's picture

In China, there is no sell trend, only buy. In Russia, there is no gay (or bi) trend, only masculine type male and voluptuous women in practice of heterosexual tradition. What is different when State is control everything?

tc06rtw's picture

  Losing  money in the market is “easier than farm work”,  too!

Bilderberg Member's picture

Yet interestingly "We take your kidneys now!" continues to be acceptable.

Oldwood's picture

The reason why pure democracy doesn't work with freedom is that a significant majority will trade their freedom for a little bit of security, even false security. The responsibility for their own welfare evidently has a higher liability than their serfdom.

Markets as we now know them, are an illusion that requires nothing more or less than the confidence, the faith, of its participants. In that environment, those charged with saving us have no other choice but to lie to us, manipulate us, in order to preserve that confidence. On a base level we all understand that a certain level of faith and optimism is required if we are to accomplish much of anything, but we have drifted so far from reality, so far from anything that would or should engender confidence, that we are forced to kneel to the absurd, deny reality formidably in our face. False gods stand on legs of clay. Because it has worked thus far has given them the confidence to believe it can be sustained forever, so they, the "architects" of this delusionary gambit, are suffering from a false sense of confidence as bad if not worse than the public they sought to manipulate.

They may well have run the car off into the ditch in 08, but I fear we are headed for a cliff now. There will be no coming back, or becoming "unstuck". Who is handed keys next will be meaningless.

The farmer, looking for maximum efficiency from his livestock production, hit upon the idea of mixing a small amount of sawdust into the feed grain. This seemed to work pretty well, the cattle none the worse off for it, so he upped the sawdust content. Again, everything seemed to be working fine. Sure the cattle weren't putting on much weight and seemed a little lethargic, but the feed was cheap. So he decides to go for the ultimate cost savings and starts feeding his animals 100% sawdust. Everything again seemed fine until one morning he comes out to check his herd to discover them all dead. At this pint he becomes totally irate as he feels completely cheated as just when he had got he feed bill to zero, the damned cattle all up and died. As a leading edge progressive, he will never see his sawdust as the cause of the cattle's death, only the failure of the cattle to appreciate what he was trying to accomplish.

TheReplacement's picture

Who is handed keys next will be blamed.  The attention span of a goldfish is what iGadgets give us.

tc06rtw's picture

 … I’d sooner elect  goldfish!

sampaine's picture

Someone should form a Republic consisting of a diverse group of states with an extremely limited central government. I think such an arrangement would lead to freedom and prosperity.

The Once-ler's picture

  … and call it
The United States ?
I bet after a couple of generations,  they’d end up killing themselves off!

datura's picture

but the Chinese have been doing it right, building factories etc. The only thing they should have not imitated, two words: central banking system and especially cutting those damned rates. They should not have done that.

I have something else to add about the interest rates: I have found an old video of Putin speaking about the Russian economy and interest rates and it is very interesting. The West has been critising the Russian economy so much, without even looking at it more closely. Or perhaps because they looked at it closely and were terrified to see that Russia completely refuses the liberal economic model??? How dare they?? And without even taking into consideration that the Russian economy has really started only in 2000 (when Putin came to power). Before that you had chaos and looting, no real economy at all, and before that you had communism. So they really have had just these short 15 years, when they could have built something!!!  I would say, for this very short time they have had, it is pretty amazing what they have achieved. And that is also why their middle class has steadily kept growing. The most interesting points: Putin: 1) "Why are our interest rates so high? On purpose. We want no bubbles, thank you." 2) "The government is trying to find other ways to support the economic growth (than through the banks), though I admit we are still not efficient enough." 3) "One of the ways we increase growth is by increasing the real income of the population, which is very much criticised by our counterparts - liberal economists:-)"

Tebow's picture

The Crash that can be named is not the true Crash.... first words of the Tao Te Ching

bigdumbnugly's picture

naming the crash that can not be named:

Bang Ding Ow?

Ho Li Fuk?

Sum Ting Wong?


nope... these have all been taken.

KnuckleDragger-X's picture

They could call it "the sparkly mountain of awesomeness" or the "eternal bliss of Mao" or even "the happy place of the peoples dildo"......

Tebow's picture

Fugggg! Double tapped the save button.

Gambit's picture

His name is Robert Paulson... His name is Robert Paulson! His name is Robert Paulson!!! His name is Robert Paulson!!!!!! HIS NAME IS ROBERT PAULSON!!!!

Normalcy Bias's picture

Reminds one of how they handled, oh, I dunno... TIANAMEN SQUARE.

Bokkenrijder's picture

Well, one thing they obviously haven't banned yet is selling gold!

It just seems as if ZH has banned any objective thinking about gold, because it's always "market manipulation" when gold is down, and "a bubble" when it's something else.

Kaervek's picture

Who the fuck would be selling gold in this kind of environment we find ourselves today?

It's either manipulated or the market is completely and utterly retarded by now.

Bokkenrijder's picture

"Who the fuck would be selling gold..."

People who are pretty sure they can buy it back cheaper in the future.

Look at '08. Gold tanked and there was no supply problem. These so-called "supply problems" are just bullshit rumours that sell-side bullion dealers spread in order for you to keep on trying to catch that falling knife.

Remember, bullion dealers make a percentage on the spot price as a commission, so the higher they can convince (read: scare!) you into buying, the higher their commission.

If you were Peter Schiff (Euro Pacific Precious Metals) or any of the gold dealers like Mike Maloney or Eric Sprott that frequently appear as 'guests' here on ZH or KWN, wouldn't you rather sell gold at $1150 (and pocket for example a 10% sales commission of $115) or instead selling gold at $800 and only pocket $80 as a sales commission?

Abitdodgie's picture

Does nobody wonder why China has declared a "State of War" with America and why thier sock market is crahing , forget Greece it is a show , China has been done by design .

BorisTheBlade's picture

News like that actually cheer me up a little.

SWRichmond's picture

+1.  Reading Zerohedge can sometimes be depressing, but I needed a laugh and this brought it to me:

China Bans Use Of Terms “Equity Disaster” And “Rescue The Market"


yrad's picture

"His name was PBOC"

"His name was PBOC"

fromthinair's picture
fromthinair (not verified) SethDealer Jul 7, 2015 10:42 AM

America is still the place where you can have this conversation. For how long will this last? depends on us.

Kirk2NCC1701's picture

What a bunch of amateurs!

As Neocons and TBTF have shown, you simply REPLACE WORDS: replace Truth words with Weasel Words and Euphemisms. 

Haven't they learned anything from our Ministry of Truth?

stocktivity's picture

Oh now c''s for the good of all those hairdressers giving financial advice.

Bloppy's picture

China should just hire CNBC "journalists" to cover their debacle, the sunshine they will spread will bring eternal happiness to all.

Osmium's picture

Sure, because the "fundamentals" are Strong! 

SWRichmond's picture

To hell with "fundamentals".  What about TITTIES

Arnold's picture

Emulating RT, they could go with United Nations sponsorship, ie R(UN)T


China Times/Today.

Dr. Engali's picture's GODZILRRA, and it's from Japan. Sheesh.

NoDebt's picture

Maybe they all look the same to him?

Arnold's picture

When considering what may be bubbling out of the South China Sea today, Godzilla v6.054321 would not be satisfied with a small Island Nation.

ersatz007's picture

Run! GODZILLA!!!!!!!!


correct sentiment...wrong country 

Iam_Silverman's picture

"correct sentiment...wrong country "

Well, once Godzirra is finished with Japan, where else would he go?

commishbob's picture

Kuroda and Abe wrecked Japan worse than Godzilla ever dreamed. 

He's moved on to fresh turf. 

Closet Boy's picture

Well, Godzilla is more than welcome to visit my region...


This  morning, I discovered a large area of my passenger fender covered in poop.  Having studied the sciences, there is only one creature that could do such damage.....MOTHRA!