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Chinese Big Cap Stocks Continue To Slide; Bridgewater Warns, "Typical Of Market Dominated by Unsophisticated Investors"
As $170 billion hedge fund Bridgewater noted, "new participants are now discovering that making money in the markets is difficult," and sure enough, as WSJ reports, Asian hedge funds have suffered steep losses in June. Several hedge funds were hit with losses on longs (unable to square positions due to suspensions) as well as a dearth of effective tools to short, or bet against, Chinese stocks as they dropped, highlighting the downside of investing in an environment where managing risks is difficult and government actions are unpredictable.As the world anxiously awaits tonight's Retail Sales, Industrial Production, and crucially #goalseeked GDP, Chinese big cap stocks are continuing losses from the last 2 days. The CSI-300 - China's S&P 500 - is now down over 7% from post-intervention highs on Monday.
Rather stunningly, as Bloomberg reports, more than 52 percent of the past six months' buy transactions by major shareholders and management in China companies happened in the past week. So it seems that after selling to the farmers on the way up they are no forced to buy the shares back from them...BUT these 4 were selling (off with their heads!!!!)
It looks like China is going to need a bigger boatload of intervention (though we note that ChiNext and Shenzhen continue to rise). After opening modestly in the green, CSI-300 is fading...
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.3% TO 3,874.97
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.1% TO 4,068.88
or we are going to see a lot more of this...
Only a third of Asian hedge funds tracked by Credit Suisse Group AG posted gains in June, and the group saw an average loss of 1.6%.
“Up until the end of last month, most people thought it was a healthy correction,” said Richard Johnston, Asia head for alternative-investments consultancy Albourne Partners Ltd. “I think it went a lot further than many people thought.”
...
Highflying hedge-fund managers aren’t big players in China, which has only recently allowed foreign investors to freely buy mainland stocks through the Shanghai-Hong Kong trading link opened in November. Mom-and-pop investors in the country drive the market and have taken the brunt of the recent rout.
“The Chinese market’s price action is typical for a newly developing equity market that is dominated by unsophisticated speculators,” said Bridgewater Associates LP, the world’s largest hedge-fund manager with about $170 billion under management, in a July note to clients. “New participants are now discovering that making money in the markets is difficult.”
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But all eyes will be pinned to China at 2200ET when the data drops...
in all it's "manipulated" wonder.
* * *
In other news: Golden Throat, the company with the best comb-over in town, starts trading today in Hong Kong pic.twitter.com/tq8kTW3b2N
— Richard Frost (@frostyhk) July 15, 2015
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#Chineehousewifepitchforkandtorchbrigade
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Face it, you went all in with the Chinese stock market, all on margin. So tell others how they can get in on this once in a lifetime opportunity.
God DAMN there's a lot of stuff around the world that I was promised was "fixed" but isn't.
Are they going to start executing short sellers in the street soon or are they going to let this collapse get REALLY out of hand? C'mon you commie bastards, you told us you knew how to control this shit, so START CONTROLLING IT ALREADY!
When the clamp-down is more like a Brazilian wax....
Well, good. I thought we were going to go with more extreme measures like anal bleaching.
“Golden Throat”… does that mean they sing good?
The Chinese market is typical of market dominated by free market forces, unlike the US where the free market is dead.
Exactly....what's his damn point, that sophisticated investors only drive prices up! "making money in the stock market is not easy" give me a break....yah, so give all your money to the "smart guys"
Who are them smart guys?
GS, JPM, DB, HSBC, Bridgewater...?
Sophisticated investors like in the USA, have the Federal Reserve under their control. Fed is the market and these "sophisticated investors" always profit.
When you must enter yet leave no trace.
Exactly,like all that greenshoots nonsense and how many times have the IMF revised down GDP expectations.
Still no matter what happens the Chinese will still proclaim 7% annual growth.
Whereas; other markets are NOT dominated by un-sophisticated investors. ??? WTF? Is this guy serious.
I was thinking the same thing. All those hedge funds and banks must be pretty un~sophisicated. It seems to me the retail inveters are largely the smart ones.
The banks crashed the system in 2008, not retail investors. Those A-Holes at 'Bridgesludge' are just pissed they don't have all the retail patsies to pull the same shit on over here in Amerika.(yet)
If it wasn't for the lying thieving banksters levering up all the Chinese investers, they wouldn't be fucked under the rickshaw.
If threatening sellers with jail isn't enough to stop the downward slide I guess the only option left is the death penalty for sellers.
unsophisticated as opposed to the "highly sophisticated" zirp fueled btfd algos here in the usa? the only difference between china's stock market and the usa is that the usa is moar fascist with a moar effective worldwide ppt network.
Nice open. Down 1.3% and everything that is available to open isn't open yet. Could be another fugly night.
No big deal. Es has it priced in. These markets are discounting everything, right?
As anyone short TBTF's found out.
thinking two things, both musical...."like a bridge over troubled waters." and "Hello darkness my old friend"
"Shenzhen. I know there is good in you. I can feel you trying to...
SHUT UP PICARD YOU FUCKING ASSHAT!
(hurries back to the Scimitar)
Dear Bridgewater:
GO FUCK YOURSELF.
- An Unsophisticated Chinese Investor/Speculator
Most hedge funds and hedge fund managers are scum but Ray Dalio is a pretty stand up guy. He has, arguably, the best track record in the world and is not tribe.
He is one of a very few I respect along with Dr. Michael Burry, Kyle Bass (somewhat) and maybe Hugh Hendry.
Wi too lo
Wow, a company called Golden Throat?!? Where do I sign up to invest?
maybe deep golden throat would sell even better
In light of the circumstances, and China's informational history, what are the odds that this data will not be significantly doctored for public consumption?
Making this type of coment may indicate that Bridgewater does not understand the Chinese market. Their sophistication is limited to American market.
In a market full of unexpected down turns, rigged profit statements and companies buying back their own shares, the dividend and potential dividend growth is always the key. It is the ability to sustain the interest of having the sharehold staring loyal long term thats shown maturity. The fraud it when company employees are dumping shared to profit short term and still have a significant say in the direction of the company, a conflict of interest evolves into a toxic relationship...