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Chinese Police Officially Launch Crackdown On Stock Sellers & Rumor Spreaders
Not only has the Chinese regulator specifically asked all listed companies to submit reports, within the next two days, on the measures they will take to prop up their shares, according to the 21st Centruy Business Herald; but, as we warned yesterday, Chinese police have begun a "nationwide action plan" to work with stock regulator CSRC to crack down on now 'illegal' stock and futures trading. As SCMP reports, police are checking who sold off Ping An and PetroChina stocks in last 30 minutes of trading July 8 while Government was buying to boost index... Who needs QE? This is worse, much worse...
Market sources: Police checking who sold off Ping An, PetroChina stocks in last 30mins of trading July 8 while Gov was buying to boost index
— George Chen (@george_chen) July 10, 2015
MORE: Chinese police to work with stock regulator CSRC to implement "nationwide action plan" to crack down illegal stock and futures trading
— George Chen (@george_chen) July 10, 2015
BREAKING: Securities Crime Bureau of Public Security Ministry investigating 10+ "malicious shortsellers" who sold off stocks, futures July 8
— George Chen (@george_chen) July 10, 2015
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Which explains this...
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And here is what Rabobank thinks...
“China managed to stage an impressive equity rebound yesterday. One could call it a dead cat bounce, but we don’t even have an entire cat, so it was more parts of a dead cat bouncing, aided by news that anyone caught selling short would be arrested.
To say that doesn’t look sustainable is an understatement, especially with PPI (Producer Price Index) slipping to -4.8 per cent (Year-on-Year), and CPI (Consumer Price Index) edging up to 1.4 per cent only on vegetable prices.”
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Mao say BUY!
Why buy if you can't sell?
We deserve everything coming our way.
I love the smell of DESPERATION in the morning.
We need to rename the Chinese Stock indexes to “The Shanghai Roach Motel Composite Stock Index” and “Shenzhen Roach Motel Composite Stock Index”
"Roaches check in, but they don't check out."
https://www.youtube.com/watch?v=jKhGHxO-woc
Yu sei ling? Mei bi yu du ha du tai mu, ei!
A Russian butchering the Chinese language...something tells me this won't be the last time.
Boris is equal opportunity.
The US is woefully behind China in the race to meet the new world standards of crony capitalism, corruption and iron-fisted police state tactics.
I really thought we were catching up to China. Maybe almost their equal in some respects. But with this most recent wave of improvements, China has once again set the bar well above our reach.
The thing with China is that they're pretty medieval when it comes to crimes against any party dictates.
In the U.S., market manipulators get a slap on the wrist. In China, their hands will be cut off at the wrists just before their executions and organ harvesting.
So basically, China doesn't have a stock market anymore. For a few hours each day, they just post numbers on a board. Sounds totally sustainable.
Welcome to your soon to be new reserve currency providers.
Somehow that does not leave me with a warm snuggly feeling...
now the curtain has come back. this would be an enemy in my book. i fucking hate authority, because it is always the same perso nality; a fucking jerkwade asswipe motherfuck with poor traits.
so, maybe it aint so bad here in merica, not, but cleanest dirty shirt for now. the fight for freedom is right now in our face.
i am not optimistic though. too many non actors, THEY SHOULD, not I will, ha...
What sort of world have we woken up in. This has gone way beyond the most imaginative fiction. Why doesn't the Chinese offialdom just dictate that all stock prices must rise by 1c per day forever.
All those people calling China the next financial super power have just be proven a complete dolt. These Chinese officials are dumber than the US congress and you can't level a greater insult at anyone.
Even at the point of the worst of the decline in the last few days the Chinese market was still up 30% on the year ! ! ! ! !
If events had transpired such that the market simply moved up in a linear fashion to this point everyone would have been cheering the strength of the Chinese market. STOP A SECOND AND THINK ABOUT THIS.
Humans are so fucked.
The stupid fucks at the top are slowly realizing they can't play god with numbers in the long run. Out of fear, they issue such facepalmic dictums, hoping to achieve some sort of control, or at least pretending to.
b o t ast, so maybe printing copter ben style is the answer til collapse. at least everyone gets a drink for free. this, is assuming they won't do the right thing- of course.
China knows all too well what Soros did to the pound sterling
Small doses of Quantitative Extermination are often necessary for the healthy functioning of a corporate fascist state.
Well aboe our reach my ass! The US is just more sneaky about it.
Exactly. Where was the crackdown on "malicious ramp buyers" and "profit peddlers" in the 1-year 150% ramp up?
Crickets.
There is always a need to get something for pretty much nothing. Making things increase in value allows "a player" to eventually sell it at a profit. Be it commodities, stocks, or even lysine. The status quo wants things to increase in price, aka perceived value.
Seriously. China won't crash, because the party won't allow that.
Instead, the whole economy will freeze like an ice cube.
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Only one way can make so many money work on lap top, maybe you are web cam dancer, no?
In USSR, best friend's ex-wife make you!
People of the government, by the government, for the government, shall not perish from this earth.
Just waiting till it's illegal not to buy!
Obamacare lesson #1.
Buy Mao Stawks!
Game Over
GAME ON!
Hey Chanos - The Wang's have your number.
Wang's can do wonders.
I don' t know what to laugh harder at, this story or the fact that ES is up 20.
T hey should just make a law that once a stock reaches a certain level it can never be sold for less.
Stop thinking and just BTFDYFI
They've been shanghaied!
I hope china crashes and burns and sells our real estate so it's not so expensive to live in the US. Fucking assholes.
How are they going to crash? You can't sell. If you do, they execute you.
LOL. Yeah, central planning always keeps asset prices up forever. ALWAYS.
Stay long, my friends.
in this case you don't need to sell it to know it's not worth shit---its at zero ---gov't can buy and sell internally ---wealth effect--
in this case you don't need to sell it to know it's not worth shit---its at zero ---gov't can buy and sell internally ---wealth effect--
You are can say that again!
I share your view and frustration. The bastards are doing the same thing to our market, here in Aussie land. The median Sydney dwelling price is about to surpass the magic million milestone.
I know people in NZ and it's the same. Completely unaffordable.
My friends and I are trying to raise families and do the right thing and we can't because those bastards are inflating every cardboard box in the northeast US. It's insane. I wish they would get the fuck out of here and stay in their own shithole.
Real estate ownership by non citizens should be illegal, end of story. The greedy cunts running this country could easily enact this law, except the price of their investment property would fall.
Humans are so fucked.
"Real estate ownership by non citizens should be illegal, end of story. "
I absolutely agree. If you are not a citizen, then you own nothing in this country. Nothing.
Assume that is sarcasm.
Housing is a basic function of human survival after water and food. It should not be subject to greedy mother fuckers who just want to make a buck at the expense of someone else.
Humans are so fucked.
Maybe you are miss education of health in middle school where learn method of human procreation and progeny?
What a moron. Real estate ownership by non-citizens is a no-no, but by all means buy stocks and bonds to high heaven. Oh and set up factories with slave labor too so our CEO's can make 17 million a year! What a deal you've got for the foreigners, no fucking wonder they get crazy ideas like the no shorting laws. They had to have learned it right here.
.
Are you an Aussie? If so, you will relate to what I've written below.
The way you should look at it, is slightly different to what I believe. If you let them only buy brand new dwellings (current FIRB regulation) and strictly prevent purchases that do not add to housing stock, you will end up with an horrendous oversupply.
Think back to what happened to the Gold Coast apartment ponzi, when the Japanese bailed out of that market. Absolute devastation with unsold apartments as far as the eye can see. A repeat of this involving the Chinese will very quickly bring down house prices.
Or dual pricing like they do in the Channel Islands.
Inverted capital controls.
It is already. Keep paying your property rental tax. Or, try not paying your property rental tax.
"The bastards are doing the same thing to our market, here in Aussie land."
Your anger is misdirected. You should ask why your government allows foreign investors to buy Aussie real estate. Where is it written that just anyone can buy a house in Oz, Canada, the USA etc? Other countries don't operate that way. You have to be either a citizen or landed immigrant first.
I'm amazed more people don't see this. Instead they bash the Chinese for doing exactly what they would do in their shoes.
Here's a question: How do Costa Ricans feel about gringos driving up the price of their real estate?
What goes around comes around, yeah?
jesus are all you guys serious? the chinese are forcing up home prices? kind of missing the root cause huh. like the US manufacturing base being sent to china and massive money printing by all central banks the world over. don't blame the chinese for bidding up house prices. blame the fucking globalists, CBs, and surpanational trade agreement cocksuckers who force the entire planet to use the dollar and then constantly devalue it.
"like the US manufacturing base being sent to china and massive money printing by all central banks the world over."
If you're looking for a root cause you'll have to go further back than that.
Corrupt fvcking Chicoms.
FUBARtoHell.
How do you know what's illegal? Becasue they say it is?
Anything that supports and prolongs the status quo = legal.
Anything else = illegal.
Hmmmm.
So far as I know, stock trading is a zero sum game where the number of shares bought has to match the number sold.
The Chinese government buys shares to support the price of private companies.
Okay, I got that part.
Where do they think the shares they bought come from?
Where are they going to find sellers willing to sell shares to them the next time they pull this pathetically transparent trick?
It's illegal to sell when the government is buying?
Next, they will have to make it also illegal to not sell when the government is buying.
Perhaps the safest route would be to donate your shares to the government now and avoid the financial dilemma that awaits.
+1 - you are growing on me.
"I expect you to pay for my losses too.
That's why I voted for you."
Sincerely,
Capitalism
"Where do they think the shares they bought come from?"
Ding, ding, ding - from the mega-rich members of the politiburo who are getting the hell out of dodge.
Do as we say, not as we do.
I point this fact out because I have a TON of sympathy here for "the Chicoms" as everyone here now calls them.
We've been screaming about Moral Hazard on this site since before it was even born...China now confronted with such a Dillemma is rightfully "toeing the ZH Line" in my view.
What they lack are the ZH Smarts this place has become well known for..that whatever you and I thing "outside of us" work powerful forces that act contrary to all our interests...and yes those interests win.
I think the Comminity is spot on for pointing this simple fact out...but I also think we should remeber that these are The same forces that have annihilated all us too.
In other words should Wall Street devour this open wound like a fleet of Piranha as we all think they will...does this be edit us down here in the cheap seats?
It might.
MAYBE.
But I sure would hold back from the gloating. The "Chicoms" really have earned their keep on the Global Stage...many folks have become rich beyond their wildest dreams because of their hard work, thriftiness and perseverance.
To see all that annihilated by the same folks that savaged our Country in 2008 is truly sad indeed.
They are moving to California.
They own an entire city in So.Cal with mansions and their 18 yr old kids driving Lamborghini's.
Stock splits!
Everybody gets a big portfolio of nothing.
I think if you read between the lines, certain favorite sellers may be allowed to liquidate. You also dont know if there is just massive dilution going on either....
Look, the reality is there is just no rules anymore. Its I win, you lose...
Karlus, it is simply the machination of absolute corruption and hypocrisy. The Chinese ruling party is a whitewashed sepulchre.
And they are literally too dumb to be embarassed or shamed by this. A little wind blows and PBoC pees their pants, takes their marbles and goes home because they cant win.
Threatening to arrest people selling. Halting half their stocks. Blocking anyone with 5% from selling. And you know those rules dont apply to everyone.
Just goes to show the world the clowns that they are. When real stuff happens, they wont get to change the rules or have a "do over"
Im not bitter at all, I made a bit of money on the drop, but its just shameful and clownish. I'm done with China, LOL
"...I made a bit of money on the drop..."
Guards! Seize him!
It is illegal to sell shares you don't own. Just as it should be in the US.
And you think all the people selling were selling shares they didn't own? And the market would have kept going to infinity except for those terrible short sellers, even though the government had stepped on the escalating margin loans?
It seems no matter how hard you try to drive the point home, people just can't get it through their thick skulls that there is NO short selling without margin buying. The two are opposite sides of the same coin.
This is NOT the same as naked short selling which is FRAUD and should be prosecuted. But hey, let's not go there. Let's go after the little fish instead.
Same as always.
I really though the level of market expertise and awareness was higher here than elsewhere, but reading some of these comments, I just have to wonder.
Tarabel, you look like you could suck a Titleist through a garden hose ... so I know you're not naive. Look at my face Tara ... I'd like to lap your landing strip ... but I digress.
What we are witnessing is pure fascism and unadulterated criminality writ large. The Chinese ruling party is the largest crime syndicate on earth. They are getting the shares ... or rather, they GOT the shares from the knitting lao taitais and the banana sellers and other assorted mouthbreathers. They are frontrunning policy and raking huge sums.
uh...carefull there lad-Tara could be a guy-or an 80 yo grandmother eeuuuuu! Avatars mean nothing
Maybe it's now time to plow shares into swords.
Tarabel, I think your last line is almost there: of course the govbots understand that they need people to sell, just as long as those folks don't expect to get paid for their shares.
Remember on Sept 12th, 2000, when Bush 41 asked us to not sell stocks, while all the institutional investors were selling like hell?
This is similar in substance, but not style.
The Chicoms don't have style.
They have style; it's harsh, crude, abrupt, heavy-handed "I-cut-you-balls-you-no-do-what-I-say" style.
Imagine the Chinese stock market. If the brokers are anything like mainland Chinese tourists, they'd all be shoving to get the the front of the line, no dental hygeine, and somebody is definately going to shit on the sidewalk.
These draconian measures make "walking on eggshells", look like jumping on a trampoline.
That is a great analogy Yen....
Roach motel market, your money can check in but it can't check out.
Capitalism!!! or something.
Capitalommunism? Communapitalism?
Whatever. The leftists here will claim it's capitalism and point out its evils.
wow, this shit is fucking crazy.
as rigged as our ''markets'' and europes ''markets'' are, and we all know they r as rigged as fuck, china is making our ''markets'' look somewhat sane, at least for now. never thought id say that.
why the fuck would anyone in china buy any stock if u r not allowed to sell?
Well, for starters, you don't actually have to hold a gun to a workers head yourself?
No, seriously!!! Will your .gov protect YOUR 401k like that????? (oops, excluding public sector employees)
Would that be a buying opportunity for going long china ETFs like YINN? If the underlying stocks can't be sold...I'd expect a rush of new money into long ETFs which are required to actually buy those component stocks...feedback loop all steam ahead?
my first inclination is that the chinese know how bad it really is.
Don't know if they knew how bad it is, but they're definitely finding out.
On the surface it seems bad, but if you have a deeper understanding of the market here then it makes sense. The stock market in China has ALWAYS been about insider trading and manipulation. The bubble was blown, the people rushed in, and the old guard fleeced them. The government stepped in to try and stabilize it, and they were whacked around too. Rule #1 of China is NEVER fuck with the government, it's not good for the health. This is the old guard being cleaned up and probably an attempt to modernize the exchanges.
Where was the outcry for market modernization when the markets were pushing steadily higher?
It is actually the Chinese government who started to slow down the market in mid-June by inforcing strict margin regulations.
Well they wouldnt have had near the pain if they would have hit the fucking brakes a llot sooner and a lot harder, now would they? And the same shit will happen to this fecd bubble we have here someday.
well they didn't do it earlier, and then a bunch of dumb muppets jumped in and took on way too much fucking leverage. it's always been a fixed gambling hall and the muppets were being harvested as is normal, but the government decided to step in and put a stop to it.
there are blue chip stocks here that are perfectly fucking fine. but then there is low-cap garbage which has shot up by epic amounts simply because fucking morons are dumping cash into the system and all they understand is "stocks are good", what stock it is makes no difference to them. And the mass of stupidity doing it all at the same time acts as a fucking echo chamber. Randomly pick some garbage stock, see it go up because other morons did the same, and suddenly you are a "genius" stock picker and start taking greater risks and encouraging others to do so as well. The blue chips were impacted by this mass of stupidity and chinese are fucking lemmings. Manipulators sold out after the pump, started shorting and yelling at the lemmings to "hey look over there", and they cleaned up.
Government will GLADLY fuck those traders up because to the commoner, it's nothing more than stealing in their eyes and it can cause some serious instability. The muppets need to delever and get the fuck out of markets they don't understand. Expect to see some new regulations go into place for brokerages and how people are allowed to buy stocks. It's already happened to mutual funds.
interesting take + 1
government allows bubble to build, helps it pop, now has a bunch of fall guys who the people fucking hate to put the blame on, can clean up the market with almost no backlash from the powerful players. fits in with their attempts to make the country look less corrupt and opaque, same timing as BRICS development bank right as the west couldnt look worse with the way greece is being treated china is cracking down.
Not supported by the evidence. If this were true, there'd be a much more systematic approach to managing the decline, not the clown show currently on display.
probably more a case of "never let a good crisis go to waste".
they tried blaming it on foreigners, that story didn't stick then someone got the idea they could use it to clean the market up.
You ain't fooling me.
"Where was the outcry for market modernization when the markets were pushing steadily higher?"
Reform comes during the downturn season. Upturn season is all about cheerleading and profits. Plant in Spring, harvest in Fall, that kind of a deal...
when shit's all going up, they dont want to fuck with it too hard, when shit starts to break, it's time to examine it more i guess.
It is dog eating dog. Now bigger dog is tearing the little one apart.
"when shit's all going up, they dont want to fuck with it too hard"
You mean, "fuck it with in any way that may cause it to drop", because goosing the fuck out of it is clearly not a problem.
That's one way to make it all look very positive.
You are so right! A good government cares for its people, not for a few successful traders.
One word! Unfuckingbeleivable!
Steamed Cat Stir Fry bounce
There goes the retirment, you can never sell.
Hoter Cararifornia?
When waaaaaaay too much, ain't nearly enough
https://www.youtube.com/watch?v=ux3_KBGTfdw&list=PL5A183780AE95D147
Hold on. Didn't every swinging limp dick. Forecaster claim China is the next empire. Last month they were saying all the wealth is moving east. Well if so why are they buying everything here. And how about beef? Is the black market in beef so lucrative there that our beef prices are going up. $5 for ground Chuck.... I used to buy round steak for $2-3 lb a couple years ago.
You have been filling your gas tank with the same corn that cattle eat in the feedlots.
PetroChina owned by the SOE, CNCP (6th largest energy firm in the world and partner in the Russian/China pipelines deal; also former playing ground for Jiang Jiemin and former security chief and veteran of the company, Zhou Yangkang both of whom were tried for corruption this year.
Ping An and former Premier Wen Jiabo:
http://www.nytimes.com/2012/10/26/business/global/family-of-wen-jiabao-h...
It's one big red princeling club and you ain't init.
So what! The western society is for correct "means", and the Chinese society is for "end". A cat is a good cat as long as it can catch a mouse. The US 2008 financial crisis resulted in nobody in jail. Is that good thing?
Kinda depends on who you put in jail.
In China's case it looks like it will be a few little people who tried to get out of the market before they lost all their savings, and who will be labelled "vicious shorters", which you will believe because the authorities would never lie.
"illegal stock and futures trading" -- trying to sell while your shares are still worth something.
The guilty parties must be ferreted out and brought to justice before a government tribunal of handpicked yes men to conduct a series of sham trials and public executions, the purpose being to once again bolster "confidence" in the Chinese government and the guarantee of future stock market profits forever!
TRUE COLORS.
TRUE COLORS.
TRUE COLORS.
Obviously the predators-that-be in China are more concerned with getting the results they want today, rather than a good image in the long term.
They had been trying to make their image "better than the USSA" (more just and fair). But over the past few days they did major damage to that campaign, and revealed their true colors.
Of course the predators-that-be in the USSA are just as terrible. But they have a lot more practice in being subtle, and a lot more mechanisms already established to manipulate in obscure ways.
The entire world is now utterly corrupt... the only exceptions being a very, very, extremely few individual holdouts (who are hopefully hiding out to protect themselves from the swarms of locusts who will soon strip all paper assets from everyone who has any).
There is nothing new here. Right before Chiang Kai-Shek and his "Free China" government fled Shanghai in 1948, he excuted quite a few short sellers in front of the former Shanghai Stock Exchange, whom he called economic criminals.
http://www.sznews.com/culture/images/attachement/jpg/site3/20140123/4487...
http://i.ssimg.cn/guancha/News/2014/01/22/635259882014405943.jpg
Gives new meaning to the words 'execute a trade'.
Add an "r" to the end of that sentence and you're spot on.
ummmm.... they are totalitarian in case you forgot.
So " all listed companies to submit reports, within the next two days, on the measures they will take to prop up their shares ". Why didn't the Fed think of that, they wouldn't need the PPT.
Just shows how smart those Chinese officials are.
If I were George Soros I wouldn't be visiting China again.
police are checking who sold off Ping An and PetroChina stocks in last 30 minutes of trading July 8 while Government was buying to boost index.
==================================
It was Georg Soros. Lock him up in Tibet!
I did it. It was me. I sold it short. Couldn't help myself. My greed simply carried me away. I have a problem, I know. Stupid twits!!!!!
So all those folks with underwater margin loans (including shadow banking ones), who are being pursued by nasty people with meat cleavers, who can't sell their shares have to sell other assets in the real economy at mark down prices. [Excluding members of the party, especially important ones, who will be made whole and given a profit.]
Hamhanded action in the stockmarket will cause contagion in the real economy. Well done Mr Xi.
Are you trying to say that, Mr XI should somehow care or be responsible for people who took loans to buy shares?
You should watch the movie Councillor.
And everyone should go back and look for a job.
I know hard work does not pay well. But better than to deal with the devil.
It's not a good sign when the Shanghai Composite ticker just goes dead without explanation for over an hour on the Bloomberg (and Yahoo! and Google Finance) website, is it? (Is it any different on the big-boy financial information services? I don't have access to those.) Same thing happened yesterday, but I don't think that's necessarily reassuring. I was also sure that I saw it open below yesterday's close and go down this morning, before that was corrected into an opening above the close and a rip upwards.
EDIT: and so now it's dead on Bloomberg and Yahoo! but it's been updating for the past 15 minutes on Google Finance?
Shanghai stock exchange takes an hour break during lunch .
Thanks, that makes sense.
Captain Wallstreet takes Tyler's arm as they leave the visitor's gallery and says:
(a $20,000 a month intern from Goldman Sachs approaches) "Shanghai wired your win... your funds, Captain. Here's the ID of the wire transfer." (hands Captain Wallstreet a slip of paper.)
The Captain winks at Tyler and then:
Interesting that the police are investigating Ping An and PetroChina as both companies were led by or heavily invested in by so-called enemies (and their families) of Xi and Li.
Since the consolidation of power by Xi and the crack-down on his competitors in the Party and the military through the anti-corruption campaigns, he can only retain his newly consolidated power if the economy hums along and justifies the ousting and imprisonment of very powerful people and their networks. Preserving the hegemony of Party is synonymous with preserving Xi's reign until 2022. The economy is key to that strategy.
And after that 6 month period of illegal selling, Chinese stocks can resume plunging.
This is not a market, it is an abattoir. Corral the sheep, calm them with reasurances, distract them - then harvest. Then repeat.
After the Newtown Conn incident, ,China commented total disarmament for Americans should be implemented. I can see why.
Sandy Hook was a hoax. Look it up.
The Chinese are gonna be pissed when they find out that the squid was behind this all along.
Finally! Someone has taken Keynes' philosophy to its logical conclusion.
The Real story is the destruction of the Rule of Law by America-hating Elites like the Clinton's, Bush's, Obama, etc. The Law is dead. Now it's all the Rule of Politics. The premise behind the Rule of Law is that equivalent acts result in equivalent penalties. That the Rule of Law is DEAD may be illustrated in one very simple example:
Two people each burn a flag. Person A burns the American flag. Unelected perverts in black robes heading the political court system rule this act politically correct and uniformed Government "Brownshirt" enforcers protect the perpetrators. Person B burns a 'Rainbow' colored flag. Said unelected perverts in black robes pronounce that a politically incorrect "Hate Crime" subject to arrest by Brownshirt enforcers arrest and prosecution. Presumably non-Hate Crimes are Love Crimes.
"Sow the wind; reap the whirlwind." What catalyst will spark the long overdue drastic culling of these Elite parasites bent on destroying America?
Boy! All the hedge funds US intelligence operatives and Jewish oligarchs of Wall Street who tried to pump and dump the Chinese market are not having a good time. In America, they would have made trillions off this.
when are the brics, and aiib going to get serious, buy up greek debt, form Greece first bank, and start pipe lines, and new port construction,employees paid in pm's or choice of currency, no checks paid out, or accepted in euros, take those to, fu. eu, goldman banks.
They can try, but it's sure they will fail (in the longer run). I would hope it'll be the end of the socialist regime, but I'm afraid, they will their military to good use, as they did some years ago... It's alway hard to be right if your government is wrong....
I used to be very much against shorting. I thought it was Un-American. These days I know different.
Markets are like forests. When they thrive, more timber becomes available and must eventually burn off. If it builds up too much, you can have a disastrous fire wiping out the entire forest This is why the forest service has controlled burns.
Shorting allows for "controlled burns". Remember, when shorts take their profits, they are buying. This helps to stabilize markets when they are correcting.
NOT ALLOWING markets to correct will ensure a huge burn off at some point... much worse than if a controlled burn had been allowed.
China is preventing their market from correcting. Halting stocks, peventing exits, and making shorting illegal only drives more people OUT of the market. This will inevitably make things worse.
Add to this the global correction that has been forming since Q4, 2014 and it becomes apparent that the Chinese government is fighting against a growing tsunami of a correction... and they are only making it worse.
All this said, I had expressed a theory regarding "China's Race to the Bottom" with regard to western markets and their attempt to force the Western Economies hand. I thought (and still do) that China's economy was in far better position to recover from a correction while Western markets have extreme systemic risk making a correction impossible without a crash. For whatever reason the Chinese government does not recognize this and are implementing market controls of their own.
They are shooting themselves in the head by doing this. Free markets are allowed to correct. Rigged markets are not. China appears to be no different than the western markets in this regard.
If China points to the sky and says stocks must only go up....then fine, ALL IN stock:YINN