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Utter Desperation: Chinese Police Vow To Arrest "Malicious Short Sellers"
In what can only be described as total and utter desperation, China's Public Security Ministry and China Securities Regulatory Commission are discussing a plan to take action against "hostile short sellers"... (via Google Translate)
[ Ministry of Public Security in conjunction with the recent Commission investigation of malicious short stock and stock index clues ] correspondent was informed on the 9th morning , Vice Minister of Public Security Meng Qingfeng led to the Commission , in conjunction with the recent Commission investigation of malicious short stock and stock index clues show regulatory authorities to the operation of heavy combat illegal activities .
Which in English means...
Special workforce to be led by Vice Public Security Minister who vows to soon nail down those who manipulate Chinese stocks, index futures
— George Chen (@george_chen) July 9, 2015
However, it appears thety are going to need to do more...
* * *
Just one question: Will the police also arrest the brokers who allowed their clients to lever up to extremes with no awareness of risk, encouraged by the government, buying the stocks of companies that make plastic umbrellas at x-thousand P/E multiples?
* * *
I didn't sell. I swear I didn't!!!! pic.twitter.com/jEi0hYrUkm
— Fed Porn (@FedPorn) July 9, 2015
"I shorted" pic.twitter.com/Q3FzGh7gVC
— zerohedge (@zerohedge) July 9, 2015
As we detailed earlier, China is a $hitshow again...
With more than half of Chinese stocks halted or suspended, traders are scrambling to hedge the potential vacuum under prices when (or if) they ever open again. With options limited to non-existent in China, ETFs around the world are under pressure (with significant discounts to NAV everywhere). The cost of protecting against significant downside is now at its highest on record and the skew (difference between optimists and pessimists) has never been higher... This 'protection' has seemingly relieved some of the vicious cycle selling as yet another round of financing to backfill liquidity holes in broker balance sheets, but Chinese stock futures are trading 2-3% lower in the pre-open (less than might be expected as much driven by margin hike forced unwinds as much as sentiment).
- *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 2.9% TO 3,363
- *CHINA'S SHANGHAI COMPOSITE INDEX SET TO OPEN 2.1% LOWER
Pushing CSI-300 Index into the red for 2015...
BREAKING: China's stock market opens over 2% lower, with over 400 stocks immediately down 10% ... and about 1400 stocks still in suspension
— George Chen (@george_chen) July 9, 2015
* * *
But have no fear...
Another day, another round of liquidity poured into the leverage black hole...
- *CHINA SEC. FINANCE AIMS TO OFFER LIQUIDITY TO FUND COS.: CSRC
- *PBOC TO INJECT 35B YUAN WITH 7-DAY REVERSE REPOS: TRADER
And the politburo is getting serious!!
- *CHINA CBRC SUPPORTS BANKS TO COOPERATION WITH CHINA SEC FIN
- *CBRC ENCOURAGES BANKS TO COOPERATE WITH CHINA SEC. FINANCE
- *CBRC ENCOURAGES BANKS TO OFFER FINANCING TO CHINA SEC. FINANCE
- *CHINA CBRC TO SUPPORT STABLE STOCK MARKET DEVELOPMENT
- *CBRC ENCOURAGES BANKS TO ADJUST LOANS TERMS WITH STK COLLATERAL
- *CHINA CBRC ENCOURAGES BANKS TO HELP FINANCE STK REPURCHASES
Next come the orders on pain of death!!??
And then there's this...
- *HAITONG SECURITIES SLUMPS 16.6% IN H.K. AFTER SHR BUYBACK PLAN
That's not what is supposed to happen!!!
But traders have been extremely active in their hedging...
Crash risk has never been more expensive...
While At-the-Money Vol has spiked to 4-year highs...
Overnight saw Flash Crash come to China...
Selling pressure is heavy on the ETFs with all major China ETFs trading well below their NAV (ASHR 4.6% below!!)
And if you thought it was time to BTFD... consider this...
Chinese stocks are still extremely rich relative to the rest of the world.
* * *
We have one simple question.
How do say "unleash the Bullard" in Chinese?
Charts: Bloomberg
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they'll cry about it, eat their losses forget all about the stock market, and then like a decade down the road do it all over again.
I have to admit the Russian and Chinese have power systems like the USA. The only time someone is retired they are forced to retire and it is only a few on the inside within a clique. A little better than the USA maybe since at least they take action to Purge or Oust Leaders. They know that leaders have alliances. Maybe a new president eliminates Department heads and State Department Embassy heads in the USA. But USA doesn't really retire people.
This is a problem
There should be Term limits when we know the Bankers, Lawyers, Lobbyists, and Politicians are destroying Laws and ruining the Country, the American Vision, the American Dream, Small Businesses, and the US Constitution and all it's guidance and deeper meanings.
(Think 6 Year Term Limits for DC Politicians, Justices, Lawyers practicing Federal or Constitutional Law, and Lobbyist, and we must limit lobbyists to like 2 years if they already have been DC Congressmen or insider Lawyers)
Heard a lawyers the other night... he said 90% of Laws or Regulations are written by the over 100 Regulatory Agencies... they don't even come from US Congress.
In fact US Congress can put out legislation and the Regulators will write the law/interpret it in the opposite way. This is a Constitutional Lawyer saying this and he sounds pretty good like all lawyers do I suppose.
http://www.emord.com/
Johnathon Emord, VA., DC., AZ.
"...Let the market correct itself."
A Rant about Ego or Super Ego or how we want things when we feel we have status or position:
I think it is an illusion of the Ego.
When we have a position of power, control, status, responsibility... well the tapes in our heads start to play and we think we have to do "something".
Hey, even go into the poorest Ghetto and you see parents and drug or gang bosses doing the same thing.
- If we don't realize that we have to manage people who are prone to mistakes, prone to negative behavior, prone to crime, fraud, accounting fraud, embezzlement, lying, aggressiveness, backstabbing, envy, mayhem, jealousy, Greed, Lust, Sexual behavior everywhere with or without any other type of person... Hell then we are just to dumb for freedom and we will continue to trust Pedo Priests, Pedo Teachers, Pedo Family Authority Figures,... cheating mates.
Screw it. I'm pretty conservative in many ways. I like control. But I have made mistakes. But I can't be held to account for Adultery or cheating.
I say if Gary Hart got caught cheating his wife has to take some responsibility for knowing and working with him on the relationship and marriage.
Politicians should not be exposed nor any of us for being sexual people. But we should be held to some kind of exposure for being honest, working on honesty, working on taking a stand in what we see as a world of mistakes and corruption. If you are a minister and preach against gays and adultery you are fair game if you are polysexual. If you are a politician and you hold yourself as a perfect model of fidelity but you are cheating... that is not honest... and you might be taking money, involved in bribes through lobbying or campaign contributions... you might be covering up facts... you might be releasing reports that are incomplete and not factual... you might approve deals that subsidize corporations for billions of dollars for any number of reasons including being black mailed... why did the democrat vote for the Iraq war? To get to the other side of his own Blackmail and get the Negatives.
&%$@#@# Rant.
"...Let the market correct itself."... or have a TARP and a TALP, two tides set to "lift all boats"
Eff the Chinese.
Their market has a lot of chinks in it.
If this continues, what happens to real estate markets that are driven by chinese trying to get their money out? Any educated guesses?
Hopefully the chinks will hit the fan, and property values will drop.
I'm assuming the money flows into real estate not out. That's where the money goes to hide. Chinese oligarchs will go BK "on paper" and then slink off to enjoy their real estate investments overseas. I would be more worried about not getting out of the country before the noose tightens. One of those "chopper is here get to the roof!" events might be around the corner.
They should arrest all the Chinese who bought property in the US. How unpatriotic, not investing in the Chinese stock market. They should be shot.
Shot, botched, rescued, and their organs harvested... with extreme prejudice.
I wonder how many of those house are going to get sold ASAP to cover margin calls at in China?
#41
Jack Ma's face just got a lot smaller....
His company is worth about US$60 or 70 billion less than a couple of weeks ago, I think.
Easy come...
'Malicious short sellers'....That's freaking hilarious, the Chinese government has no idea how a free market is supposed to operate, supply and demand is just a cute fantasy like unicorns as they build ever more empty cities and demand an ever higher stock market...or else we shoot you.
I mentioned a couple days ago this is going to lead to a new crop of gold afficionados.
Now I'm sure it will. No EXIT, no Control, no Dice. Why buy in? There's a huge risk.
If only modern rulers and potentates would let the free market function, and realize they just aren't omniscient and can not micromanage economies of this size. They should study our own Calvin Coolidge, a great American and one of our finest presidents. He was cautious and tried not to make clumsy economic blunders. He knew how to let free people make money.
So your saying that their is Justice in China, but not in New York City or London.
I know dick all about Belgium, Paris, or Frankfurt. Does Switzerland Count? Probably.
$1158 per Ounce Gold Right now. But looks like you can't get all the products if you want smaller increments from certain dealers.
I guess it's working. First touch of green I've seen in many days:
http://www.bloomberg.com/quote/SZCOMP:IND
http://www.bloomberg.com/quote/SHCOMP:IND
http://www.bloomberg.com/quote/HSI:IND
http://www.bloomberg.com/quote/SZ399006:IND
So does China have the uptick rule for short selling? I forgot to ask my broker.
KINDLY REQUEST for someone versed in Vancouver real estate to do an article on the possible and probable effect on the hugely speculative and outrageous home prices bubble here in Vancouver, West Vancouver and Richmond where it is now reported that a full 40% of new condos and condos built in the last 5 years are now sitting empty being owned by Chinese speculators who do NOT live in these cities. One could call them absentee homeowners. Certain new areas of development are sold out but look like ghost towns.
Many here are hoping that the most expensive city on Earth for homes will suffer a pprice crash. I'm not looking for replies or comments here. I'm asking for someone to write an article here on the effect of the Chinese Stork Market Crash.
Why don't they rent them out? Just curious.
My wife is Asian. According to her, if they rent them out, they are no longer new. Chinese are rather fussy in that respect. They believe that the price will devalue once rented. Sounds funny, but she's pretty sure about this phenomenon.
They're doing the same here, especially in the Melbourne apartment market. Buy them and then let them gather dust.
Well there is that wondrful concept called depreciation. They are correct. After it is rented out the property does depreciate.
But that is SHORT TERM THINKING. They are not thinking about it in the LONG TERM.
So after the property is rented and occupied then, following that, after the tenant vacates, then they have the opportunity to RENNOVATE THE PROPERTY, USING SOME OF THE PROFITS COLLECTED BY CHARGING THE RENT, IN ORDER TO DO SO. This strategy even makes the property better than they were when the property was new.
That is appreciating the PROPERTY as you are adding value, rather than extracting the value from it, which is DEPRECIATING it..
Do they really LACK an understanding of APPRECIATION and DEPRECIATION? Has anyone tried to tell your Asian wife's friends about this concept. It is simple Finances 101.
Are they that shallow? Are they that fucking stupid? Come on...I was led to believe that the average Asian is smarter by ONE HALF Deviation over that of the average American... Come on now...That just cannot be real...They cannot be that damned MYOPIC.
(Unfortunately it is real...Most Americans are that damned myopic.)
No, they're not fucking stupid. But often money isn't the issue. They may have more than they know what to do with. Not everyone feels the need to squeeze every penny out of their property.
I'd like to see all squatters move to Vancouver.
Tsunami On
I know, I know, it's facebook, but are you following this: https://www.facebook.com/ForeignInvestmentVancouverRealEstate ?
What is the matter with these dumb f**ks? Never mind, I don't give a s**t.
Really Tyler, the photo of the man and the column of tanks in Tiananmen Square.
How pathetic is that?
Or were you drunk?
Ration dog meat, now ! Woo Fa (woof) ! Let them eat .... anti-freeze laced .... dog kibbles !
Pretty bad everywhere but I still get the feeling this is still just the tide going out before the real TEOTWAWKI Tsunami thunders in.
Hanes
BVD
Fruit of the Loom
All going out of business.
China is now freeballing.
Not even Fledlicks of Horrywood allowed to operate there anymore.
I short sold my cock with the soon to be ex wife! Ask her how it went!
Denial.
It's not just a river in Africa anymore.
The chinese market obviously is still a bit alive and not as artifical and managed as the US market. Is is better to see corrections materializing instead of shares climbing relentlessly up. In a global market that has totally lost yield capital gains shall not escape reality.
China is busy with its stockmarket, Russia is busy with Ukraine, Iran think it can have peace with zionistan, Jade helm can now begin.
put Soros in a forced labor camp in Tibet?
put Soros in a forced labor camp in Tibet? It reminds me of how Chiang Kai-Shek exceuted some small shopkeepers of Shanghai who dared to pass hyperinflation thru higher retail price. Guess there is nothin new.
Paging Comrade Cox.
Where did Chinese learn or copy those manipulations?
Maybe SEC, Congres, Senate, FED? Is there any other champion, not on my list?
I bet there are some Chinese who are saying,"motherfuckers"
Oh yeah it is the evil short sellers, not your own stupidity and greed that did this to ya.
However, I would bet if they did execute a few, the market would rise............
I mean, if you already ban selling, then it can only go up right?
I have to say Melon Sucks Donkey Dicks.
Bank of New York Mellon is a Ripoff Artist.
Screw you Mellon.
Thank You.
You set up an IPO we know one thing for Sure. The Bank Wins!!
Isn't that right assholes!!
Fuck You.
Silver going cheep..... anyone? lol
this has to be bullish, right?
Elites are the same the world over.
You can stop a bubble forming, you can't stop it bursting.
It looks like every nations needs a little group of nerds who are not money motivated to track fundamentals (like the guys from mthe big-bang theory).
They will not lose their minds over the thought of making a quick buck and can quickly flag bubble formation.
Let us look at some recent examples:
Pre-1999 internet mania - the nerd fundamental tracking squad would soon have spotted the insane valuations of the new internet companies
Pre-2008 sub-prime mortgages - ratio of mortgage to income means we are in mania bubble mode
All it takes is people who can keep their heads while everyone else is losing theirs over the prospect of making a quick buck.
It's called stupid greed versus intelligence and looking at base ratio's. I agree.
It is the ISIS approach to the Chinese market. Convert to losing your ass or lose your head. Your choice.
Clean up the briberies & corrputions before arresting that guy. At least he plays by the rules.
Markets are irrational and have been since Tulip Mania in 1600's Holland.
Do not look for rational explanations, the prospect of easy money turns human beings into gibbering idiots.
Stocks, house prices, <yet another asset type> are going up in value.
I have heard of someone who has made lots of money, I want in.
I am making money, I need to borrow money to carry on investing and make more money.
Gibber, gibber, gibber ....................................
The bubbles burst, I am going to ruined.
No more gibbering, till next time.
Give Soros a plane ticket to China.
Soros is an FX manipulator Joe, this is a wild-ass equities bubble collapsing.
Now, if you were looking for the culpable, I would be asking, why Goldman Sachs loudly pronounced that this, "... is not even a bubble yet".
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2...
Whatever GS ... snake in the grass much?
It doesn't make any sense. If you ban selling, who will the buyers buy shares from?
Be a man!
I will be a malicious short seller if the Bank BAILs in my account .
I will buy a few thousands shares of this bank and then , when convenient , i will damp them at half price . IF a few people will do the same , I hope , the bank will learn that BAIL in is counterproductive .
Signed Italian Punter .
Closed green......
NOW it makes perfect sense - Jicheng Umbrella Holdings Limited - Prepping for SH!TSTORM...
http://www.zerohedge.com/news/2015-06-08/when-it-rains-it-pours-shares-chinese-umbrella-manufacturer-rise-2700
While the bubble is inflating people get the true joy of Capitalism.
Making money while doing nothing.
Capitalism is a must for the idle with capital.
Short sellers are Hung Far Low
http://djcoregon.com/files/2010/08/3793211185_63a77eafcb_o.jpg
what a farce, but didnt the US also change the rules on short selling during the crisis, and don't forget Navinder Singh Sarao
Ha, they love the freedom money but they don't like the freedom freedom.
Reap it!
i would love to see john paulson try that crap he did here in china. man that would be fun to watch.
HAVE NO FEAR, After my son Hercules saves the Greeks, I will send him to you and he will reek my vengence upon you..... Zeus
this downturn will seperate the wheat from the chaff.
Price discovery , bitches !
It will soon be illegal not to buy the stocks.
For those not familiar with the image of the Tank Man, this was 1989, the Berlin wall was crumbling and a million people were in China's Tiananmen Square when these tanks advanced. This is the power of individuals. This guy had guts and inspired a world.
This is The Plan B in progress, unless I can find decisive evidence on the contrary.
http://just-a-thought-from-thinair.blogspot.com/
For a long time I was holding on to a thesis: The true value of equity is a negative number. Positive economic equity can only be had by sending social equity in huge negative aka man eating man ....
Zerohedge, you think that this equity becomes zero in the long run. I think it is negative in each and every moment, and the execution of The Plan B is giving me ample evidence for the thesis.
http://just-a-thought-from-thinair.blogspot.com/2014/04/hypothesis-22-ex...
Kind and benevolent short sellers are perfectly safe.
Technically taking profit or covering long position is also selling, are they going to disallow that as well in future? So that people can never take profit? It wouldnt surprise me. Anyway, is this supposed to be next world leader? Next world reserve currency? Stupid China that cant even figure its own pollution, clean water, have no shame copying everything around, go to such medieval stupidity as banning words, block internet and is the world`s biggest market manipulator - even surpassing FED? Please...
Commiecapitalism or cronycapitualism.
Choose one: they are your only choices.