This page has been archived and commenting is disabled.
China Stocks Mixed After Regulators "Bust Illicit Stock Sellers" And Unhalt Over 400 Securities
A modestly positive open in China quickly turned negative as regulators un-halted 408 more stocks, reducing the number suspended to just 36% of all stocks. Along with disappointing trade data (and expectations of "extreme pressure in the next 2-3 months") and regulators cracking down on investors with multiple illegally-obtained margin trading accounts, early strength has faded (for now). Unsurprisingly, the three regions with the most exposure to the crash in stocks are Shanghai, Shenzhen, and Guangdong and, as Bloomberg notes, Chinese police have found their scapegoat some trading companies may have manipulated stock futures (lower we assume, as manipulating a price higher appears to be policy). Stocks are mixed with high beta ChiNext and Shenzhen higher and Shanghai and the CSI-300 lower (the latter having gone nowhere for the last 2 days).
The 24% explosion off the lows is stalling...
Shanghai, Shenzhen, and Guangdong dominate the nation's equity maket exposure
Source: @KangHexin
Scapegoats are being lined up... (as Bloomberg reports)
China police investigation team led by Vice Minister of Public Security Meng Qingfeng found signs some trading cos. may have manipulated stock futures, Xinhua reported, without saying where it got the information.
The team visited China Securities Regulatory Commission head office Thursday morning to investigate what it called “malicious short-selling of stocks and stock indices”: Xinhua
The team arrived in Shanghai Friday to continue the probe
And regulators are attempting to manage the multiple margin accounts problems (as Xinhua reports)...
China's securities watchdog announced on Sunday that it will crack down on illicit securities trading so that the market can recover steadily.
"Some institutional or individual investors hold 'virtual' securities accounts or trade with borrowed accounts. As real-name registration is required by the law, this illicit conduct may damage other investors' legitimate interests," said the China Securities Regulatory Commission (CSRC).
The commission asked local authorities to verify the authenticity of securities accounts and be more strict when supervising them.
Institutional and individual investors will be prohibited from lending their accounts to each other.
The CSRC said it will clamp down on any illicit conduct in accordance with the law, and will transfer violators to the police.
"Free" markets...
- *NUMBER OF CHINA TRADING HALTS DROPS TO 36% OF OVERALL LISTINGS
- *NUMBER OF CHINA TRADING HALTS DROPS BY 408 TO 1,045 VS FRIDAY
Trade data suggests extremely weak foreign and domestic demand...
- *CHINA 1H EXPORTS RISE 0.9% Y/Y IN YUAN
- *CHINA 1H IMPORTS FALL 15.5% Y/Y IN YUAN
- *CHINA 1H TRADE SURPLUS 1.61T YUAN
- *PRESSURE ON EXPORTS RELATIVELY SEVERE IN NEXT 2-3 MOS: HUANG
And perhaps hints of what is to come...
- *NOT EASY FOR CHINA EXPORTS TO KEEP RISING AS YUAN STRONG: HUANG
QE?
* * *
»
- 14498 reads
- Printer-friendly version
- Send to friend
- advertisements -
OT sort of:
The Chinese economic meltdown is undeniable & spectacular, especially watching it in real time, and will only get worse from here.
China's trade balance missed expectations by a MASSIVE 20%+ (on an already massively lowered expected #) in June !
Strap in, because 2015-2016 is now going to be as turbulent as 2008-2009, if not more so.
In fact, China may go into REAL contraction before 4Q 2015. Keep in mind that this is OFFICIAL Chinese Gov't data, also (who knows how much worse reality is).
http://portal.ransquawk.com/headlines/chinese-trade-balance-cny-jun-m-m-...
Jul 2015 - 03:00 - Forex Important - Source: BBG
News Headline Summary
Chinese Trade Balance (CNY) (Jun) M/M 284.2bln vs Exp. 355.00bln (Prev. 366.80bln)
- Exports (Jun) Y/Y 2.1% vs Exp. 1.2% (Prev. 14.6%)
- Imports (Jun) Y/Y -6.7% vs Exp. -16.2% (Prev. -12.3%)
Reaction details (03:02)
- In an immediate reaction AUD/USD rose by 15 pips to 0.7438 from 0.7423, trades 0.7436 last
Analysis details (03:05)
- China Customs states that exports still faces rather large pressure in the forthcoming months adding that the economy is to experience downside pressure.
13 Jul 2015 - 03:00 - Forex Important - Source: BBG
Started working at home! It is by far the best job I have ever had. I just recently purchased a Brand new BMW since getting a check for $5476 this 8-week past. I began this 10 months ago and I am now bringing home at least $87 per hour. I work through this link. Go here... www.earnmore9.com
Go find a job instead of hijacking threads and parasiting off of others. Nobody gives a crap about your B/S story/stories. It's all a waste of my time to read your comments. Now step aside leach.
Dude, you're talking to a bot.
When there are no more greater fools to sell to, no problem, since selling is illegal, every stockholder is now the greater fool. I can't imagine what those charts would look like without intervention.
But, I suppose the Chinese govt CAN imagine it, hence all the intervention.
So they want people to buy stocks? If selling is illegal, then from whom?
Well, that's okay with me.
Where can I buy or rent one of these money-making bots for my house?
I don't see anything wrong. Export is up by 2.1%. Imports is down by 6.7%. The import figure is all because of oil. China did not import less goods. Just the price is lower due to oil slump.
This all makes me think of the Star Trek movie Nemesis.
"I AM YOU PICARD!
"No need to destroy the whole Galaxy Shenzen!...
we need more Calgon
Going way back for that one!
https://www.youtube.com/watch?v=mzixL7Ef-bI
"Comrade, you can't sell that stock!"
"Why not? It's mine, isn't it?"
"Those assets are going down. Selling them isn't fair"
"Fair to whom, fuck-for-brains? A buyer looking for a good deal? A seller looking to recoup loses?"
"It's not fair to your political masters, who you're making look bad." BANG!!!
Don't the Chinese know you're only allowed to short(naked) paper gold and silver. When will they learn?
An arrest warrant has been issued for Marta Stewah"
But what I really want to know is... did the PBOC declare "self help" first?
This is big brother speaking: Bid stocks up or you are under arrest...
How can they call it a stock 'market' when no one is allowed to sell stocks???
QE for China! Quantitative Extermination for a lead backed yuan. Long Pb.
More like bullions from fort knox
I am going to invest in a Prozac company in the US who sells overseas..business looks good in China...
Meh, the world is fucking casino all you need is unlimited amout of chips! Play!
Here's a pretty scary article. Chinese stock market crash: Experts split on Beijing's next move
Very good article. The Ministry of Truth has banned any commentary on the stock market. Reporting on suicides has been banned. Many Rights lawyers are being rounded up and imprisoned.
This is an internal fight that I have flagged here many times. It comes down to the reforms or going back to the Stalinist policies of the past (albeit with 'Chinese characteristics'). (BTW this has been deleted in the NPC policy statement)
A power struggle is going on.
One thing is clear. The over the top response to the stock market is contrarian evidence that something is very wrong in the stae of China.
In the USSA, only "Just Us" may manipulate markets with impunity. LOL.