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"Safest Market In The World" China Opens Mixed As Margin Debt Drops To 4-Month Lows
After a brief "don't fight the PBOC" three days of releveraging, China margin debt declined once again to 4-month lows. An opening pop - as is now ubiquitous has faded in FTSE China A50 futures but CSI-300 futures (which expire today and are this subject to some 'odd' behavior) are holding modest gains, despite a quarter of Chinese stocks remain halted. For those tempted back in to the deep end of global equity risk, we offer what must go down as the Baghdad Bob quote of the year, from the Chairman of HKEX, "China's stock market is the safest in the world."
Some context on the decline and its massively manipulated bounce (which is now fading fast)...
FTSE China A50 Futures opened a smidge higher but are leaking lower (while CSI-300 Futures are holding 1% gains pre-open)
Deleveraging is happening... but has a long way to go...
- *SHANGHAI MARGIN DEBT FALLS TO FOUR-MONTH LOW
China margin debt is down 37% from its highs...
And then there's this utter bollocks...
- *CHINA STOCK MARKET IS "SAFEST" IN WORLD, HKEX CHAIR LI SAYS
Yep, looks totally "safe"...
Finally, on China, we leave you with Credit Suisse's Andrew garthwaite: "Our concern is that a triple bubble in housing, credit and investment comes with the significant risk of a hard landing."
* * *
In other news, Japan has its fair share of disasters...
Sharp is the worst-performing stock on Japan's benchmark average this morning after the Nikkei newspaper said the electronics giant is likely to lose big in the April to June quarter.
As the Nikkei 225 struggles to gain for a fifth day - up 0.1 per cent - Sharp shares are down 3 per cent in the first hour of trade.
And Korea...
And Samsung Heavy is down 17% to 7 year lows - this is the biggest drop since 1994
Charts: Bloomberg
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"No one will penetrate our shitty walls."
-Confuciass.
i've been pretty pro-PBOC last few months, especially relative to ZH
and 90% of what they've recently done, their rate cuts, liquidity injection, etc out of Greenspan school, I think has been smart, and has won them hard-earned good will from foreign investors considering the SEE or renminbi as a global option
but holy fuck have they done and said some stupid shit the last 2 weeks and just shit all over that good will
The Middle Kingdom continues to push the envelope.
The last time I checked, China was still a COMMIE country. Ya really think ya can believe any statistics comin"outta there?
...are holding modest gains, despite a quarter of Chinese stocks remain halted.
Despite?
I'm still laughing over the NasDark gains this week. Ebay had better earnings from the Paypal spin-off, and who knows what's going on with Google. I guess after 6 quarters of misses, someone threw them a bone.
The Squid and Wells Fargo missed and so did United Heathcare on the Dow side of things. I think next week is going to be rough for the equity markets.
... heard on news tonight that china have been cracking down on dissidents, artists, etc ... about 100 people have been arrested in last week ... maybe there's something brewing.
How can anyone, in light of the macroeconomic backdrop, not think that these latest bounces in the Nadsaq and China are sucker rallies?