This page has been archived and commenting is disabled.

What Loss Of Control Looks Like: Chinese Regulator Urges Traders To Rat Out "Malicious Sellers"

Tyler Durden's picture




 

After pledging a whopping 10% of China's GDP, or just about $1 trillion, to its various (at last check over 40) discrete measures to prop up its collapsing market, among which such threats as arresting shorters of stock and "malicious sellers", actions which have merely slowed down the bursting of the world's biggest stock bubble in recent years, China has finally reverted to what the communist regime does best to preserve "order" - implement witch hunts in which the population rats out any criminals who dare to go against the protocols of the communist party. In this case, the targets are "malicious sellers" with the regulator adding that those found guilty of shorting will be "dealt with severely."


This is what appeared moments ago on the website of the Chinese stock market regulator, the CSRC - an interactive online box allowing "traders" to rat out anyone who sells... maliciously (as opposed to non-maliciously).

 

Google translated:

Online Reporting Notes

 

Note: This website is in trial operation stage, the event can not normally access, please understand!

 

According to "securities and futures law violations Report Interim Regulations", the Center received reports meets the following conditions:

  1. to report the matter belongs to China Securities Regulatory Commission and the various supervisory duties range;
  2. provided by an informer's name (name), identity and other information;
  3. to provide violate securities and futures laws and administrative regulations of specific facts, clues or evidence.

The same illegal behavior securities and futures are reporting has been accepted or processed, no new facts or clues of informants to report when no longer be accepted.

 

Second, note

  1. to encourage real name, real name informants should provide my real name (name) when making a report, document number and valid identity information telephone number.
  2. Respond limited real name reporting centers and Zhengjianju accepted.
  3. please fill out the form to report each item. Fill out the "summary report the matter," a time, to write clearly illegal acts involving personnel, time of occurrence, and the main evidence and other circumstances, limited to 500 words or less.
  4. marked with "*" are required items.
  5. informants should be realistic, not fabricate facts, falsification of evidence, cheat reward or false accusation against others. Report defraud reward for the use or bringing false charges against others, shall bear The corresponding legal responsibility.
  6. China Securities Regulatory Commission and each will be in strict accordance with the relevant provisions of confidential informants and report content.

The new policy is already "working":

And that, dear readers, is what total loss of control looks like.

* * *

Instead of repeatting what we have said countless times about what happens when a government finally loses control of not one but numerous credit-driven bubbles of which China now has at least three (the downside is clear: social unrest, rioting, perhaps even civil war should stocks resume their crash to a fair value which BofA said last night is 50% lower from here) here is the running commentary from SCMP's George Chen, whose views on the matter are identical to ours.

Here one wonders why what the Fed and its peer central planning banks have done, by throwing trillions in fresh funds at an identical problem - of both asset values and collapsing confidence in capital markets - across the globe, is any different.

As for China, our visual summary from three weeks ago is more accurate now than ever:

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 07/27/2015 - 11:54 | 6359164 ZippyBananaPants
ZippyBananaPants's picture

Spy vs Spy

Mon, 07/27/2015 - 12:00 | 6359191 UndergroundPost
UndergroundPost's picture

Malicious sellers = farmers and teachers about to lose life savings

Criminal brokers = market participants about to be jailed for henious, wicked universe destroying opposition to Central Planning

Maoist Central Committee = EVRYTING AWESUM IN CHINA (except malicious sellwers and bwokers)

Mon, 07/27/2015 - 12:05 | 6359213 Deathrips
Deathrips's picture

Round up the Children of Central Bankers China!!

 

Kill the money changers!!

 

RIPS

Mon, 07/27/2015 - 12:12 | 6359238 pods
pods's picture

China imploding right before our eyes.  

What about China being the next leader of the world?  
Not saying Amerika is a shining beacon on the hill but China takes the cake when it comes to corruption.

pods 

Mon, 07/27/2015 - 12:14 | 6359244 MillionDollarBonus_
MillionDollarBonus_'s picture

I wish we had the guts to do this in our country too. Short sellers bring pain and misery to millions of people, decimating peoples' retirement funds and wiping out investors big and small. There really is no reason why short selling should even be legal - it's financial terrorism pure and simple. And although it may seem benign, the impact of this  financial terrorism is far greater than a regular suicide bomber could ever be. We need to start calling short selling out for what it really is, and start bringing these crooks to justice before they destroy every stock market on the planet.

Mon, 07/27/2015 - 12:18 | 6359256 Meat Hammer
Meat Hammer's picture

I'll bet you're a freaking GOD on HuffPo.

Mon, 07/27/2015 - 12:23 | 6359280 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

How do you prove it is non-malicious? Simple, slip money to the regulators. Problem solved. Sell and short away!

Mon, 07/27/2015 - 12:41 | 6359334 Save_America1st
Save_America1st's picture

may as well rat out those who are buyers too...cuz obviously they bought too low and should have waited for the stock to go up higher first before buying...

...wait a minute, what???

Mon, 07/27/2015 - 12:55 | 6359391 Bokkenrijder
Bokkenrijder's picture

A totalitarian regime that wants to keep the stock market elevated: don't go long gold, go long LEAD!!

Mon, 07/27/2015 - 13:00 | 6359405 847328_3527
847328_3527's picture

The Chinese peasants need a scapegoat. Our peeple shave the Confederate flag to blame; the Chinese need a symbol to cast the blame for all their miseries.

 

Very difficult to look in the mirror when things go wrong.

Mon, 07/27/2015 - 13:09 | 6359415 fockewulf190
fockewulf190's picture

Where can I get my Little Red Book of Investing? https://propagandum.files.wordpress.com/2013/03/little-red-book.jpg?w=783

Mon, 07/27/2015 - 13:38 | 6359544 Handful of Dust
Handful of Dust's picture

One Problem is the Chinese don't have a Messiah to lead them through a rekovery like we do. They need moar green shoots speeches, "never been a better time then now" slogans, "everything is awesome" mantras, and so on...

Mon, 07/27/2015 - 12:24 | 6359283 pods
pods's picture

I saw a guy selling stocks. I think his name was Lee. Yep, a Mr. Lee. Black hair, kinda short with almond eyes.

pods

Mon, 07/27/2015 - 12:43 | 6359323 UndergroundPost
UndergroundPost's picture

So how much is the Central Committee paying you, Mr. Million Dollar Bonus (Boner?), to troll these sites and post your Maoist/Marxist bullshit?

Mon, 07/27/2015 - 17:32 | 6360470 Karlus
Karlus's picture

You must be new here....

Mon, 07/27/2015 - 13:20 | 6359465 KnightTakesKing
KnightTakesKing's picture

Hey, I think I know that guy.

Mon, 07/27/2015 - 12:20 | 6359260 Ms No
Ms No's picture

You better stop that MDB or you may get a phone call from CNN or the Pentgon offering you a job.

Mon, 07/27/2015 - 12:19 | 6359263 secretargentman
secretargentman's picture

All shorts or just naked shorts?

Mon, 07/27/2015 - 12:22 | 6359274 kw2012
kw2012's picture

You are clueless. EVERY stock that is shorted has to be bought back, just like every stock purchased is eventually sold. When there is a market selloff who stops the bleeding? Short sellers, they buy and cover. With no short sellers, only a few speculators will jump in.

Mon, 07/27/2015 - 12:24 | 6359281 mamasan
mamasan's picture

You're either a troll or a clueless ignorant. 

Mon, 07/27/2015 - 12:32 | 6359303 de3de8
de3de8's picture

Mamasan, he's both

Mon, 07/27/2015 - 12:32 | 6359306 mademesmile
mademesmile's picture

Green or red - I can never decide.

Mon, 07/27/2015 - 12:35 | 6359317 uhb
uhb's picture

This is the most 1d10tic comment i have read since im on ZH.

Mon, 07/27/2015 - 12:40 | 6359335 City_Of_Champyinz
City_Of_Champyinz's picture

What an incredibly stupid & ignorant comment. 

Mon, 07/27/2015 - 13:03 | 6359417 Theosebes Goodfellow
Theosebes Goodfellow's picture

Naked shorts? How can you be naked if you're wearing shorts? Do these pleats in the front make me look fat? I can never decide. At least I have enough sense not to wear white ones after Labor Day.

~Theo

(channeling Gracie Allen)

Mon, 07/27/2015 - 13:02 | 6359414 messy
messy's picture

but then ZH will lose most commenters if you do that

Mon, 07/27/2015 - 13:09 | 6359431 rejected
rejected's picture

I maybe, sort of, kinda could see your point with naked short selling,,, but I really don't see a problem with shorting with 'real' shares.

One does want to make gains,,, doesn't one?  Retirement funds and the like should be in safe bonds (the way it used to be) not in volatile stocks.

 

Mon, 07/27/2015 - 13:14 | 6359444 Kayman
Kayman's picture

MDB
Hell yeah... let's ban selling completely.
I'm not sure where the line is between a comedian and a clown but as usual your comments go in the chuckle-box.
K

Mon, 07/27/2015 - 14:11 | 6359695 stocktivity
stocktivity's picture

"We need to start calling short selling out for what it really is, and start bringing these crooks to justice before they destroy every stock market on the planet."

 These fucking "crooks" have no respect for those honest "buy and hold" investors.

Mon, 07/27/2015 - 14:48 | 6359852 BandGap
BandGap's picture

As a follower of yours for years I will state this is one of your finer works. Just check out the comments. The hate, the vile repulsion, the lack of understanding of what true sarcasm entails.

Good work, MDB.

You're still a dick, though. Playing along with the lemmings.

 

Mon, 07/27/2015 - 12:16 | 6359250 V in PA
V in PA's picture

Hey China,

   I would like to rat out every living creature at Goldman Sachs as a malicious seller.

Your Welcome,

V in PA

Mon, 07/27/2015 - 12:20 | 6359264 HonkyShogun
HonkyShogun's picture

Right. Surely they mean the ones dumping $1B worth of gold & silver contracts at a time.

Mon, 07/27/2015 - 13:01 | 6359408 rejected
rejected's picture

Well Pods,,, at least their doing it to themselves,,, not bombing others to the stone age or trying to start wars in order to firm up their economy.

Not yet at least.

Mon, 07/27/2015 - 12:15 | 6359240 MillionDollarBonus_
MillionDollarBonus_'s picture

.

Mon, 07/27/2015 - 12:33 | 6359309 Texas Ginslinger
Texas Ginslinger's picture

substitute; USA for China; USA markets for Shanghia; High frequency traders for cheaters - same thing, different country, same result.......

 

Mon, 07/27/2015 - 13:52 | 6359613 stocktivity
stocktivity's picture

"malicious sellers" with the regulator adding that those found guilty of shorting will be "dealt with severely."

 

You probably don't have to look any further than the regulators themselves. I doubt many of the millions of new accounts opened in the past few months and buying on margin are very knowlegable on short selling.

Mon, 07/27/2015 - 12:03 | 6359199 hedgeless_horseman
hedgeless_horseman's picture

 

 

Malicious sellers of stocks...

"All market rallies grow out of the barrel of a gun." - Mao Zedong

Mon, 07/27/2015 - 12:03 | 6359205 UndergroundPost
UndergroundPost's picture

COMMUNISM/MAOISM MUST BE DESTROYED

Mon, 07/27/2015 - 12:05 | 6359214 nuubee
nuubee's picture

Then you'd better start selling your stawks.

Mon, 07/27/2015 - 12:49 | 6359373 Divided States ...
Divided States of America's picture

Stupid chinkos....so even if I bought years ago and is making big unrealized gains, I cant cash out???

In china, it takes a buy to be able to sell, only until recently was Short selling allowed and it was probably the likes of Soros and the people associated with Goldman, JPM who probably shorted the shit out of the SHCOMP at the highs that the Chinese regulators should be after, not the local sheeps who got duped into buying on margin.

Mon, 07/27/2015 - 13:42 | 6359562 Handful of Dust
Handful of Dust's picture

Those photos are pretty gruesome HH, but a strong reminder of the importance of the Right to Bear Arms. Those were such hard times for those folks.... Same with the Stalin era in the West.

Mon, 07/27/2015 - 12:05 | 6359217 JonNadler
JonNadler's picture

how come they don't shoot the gold sellers? Don't people have a lot of gold in China and when the price drops doesn't taht mean a loss for them too

Mon, 07/27/2015 - 12:17 | 6359251 Mintcoin
Mintcoin's picture

They will force people to sell their gold and force buy stocks next.

Mon, 07/27/2015 - 12:05 | 6359218 hedgeless_horseman
hedgeless_horseman's picture

 

 

COMMUNISM/MAOISM MUST BE DESTROYED

Nah.. they just need to be re-educated to BTFD.

Mon, 07/27/2015 - 14:28 | 6359245 UndergroundPost
UndergroundPost's picture

ah ohhh...she thought the Central Committee said "SELL the fuking dip"

Mon, 07/27/2015 - 12:15 | 6359246 knukles
knukles's picture

Only problem with shooting people in the back of the head is that it's hard for their loved ones to identify them.

Mon, 07/27/2015 - 12:18 | 6359252 hedgeless_horseman
hedgeless_horseman's picture

 

 

In China, as a matter of convenience, the government prints the name of the executed loved one at the top of the invoice for the bullet, which is delivered to the family in lieu of any viewing of the body.

Mon, 07/27/2015 - 12:56 | 6359392 rejected
rejected's picture

Well HH,,, the one thing I have noticed is Americans can no longer be shamed,,, which is what PCR was alluding to,,, no character and no morals. Anything goes.

China/Asia could still be doing this but doubtful it would stop Merikans and other 'civilized' westerners from buying their favorite Ithingys and gizmos. 

 

Mon, 07/27/2015 - 12:08 | 6359225 Vullsain
Vullsain's picture

When the FED runs out of ideas to levitate equity prices they can borrow a page from our Chinese capitalist market friends

Mon, 07/27/2015 - 12:09 | 6359227 Son of Captain Nemo
Son of Captain Nemo's picture

What happens when you sell out to George Soros!

Mon, 07/27/2015 - 12:24 | 6359282 Antifaschistische
Antifaschistische's picture

i love ya hedgless...but could have done without that image in my head.   very painful reminders to country brutalized by Mao.

Mon, 07/27/2015 - 12:43 | 6359342 Md4
Md4's picture

This time, things will be very, very different in China...

For every citizen enduring this horror of inhumanity, a million of the government's evil minons will be destroyed.

You cannot commit such barbarism in the face of the internet without forcing tens of millions of fellow citizens to rise in fear of an anethema gone completely mad.

The sons o' bitches in charge are now in their last days; Tienammen Square II will finally ingulf them, and it's bloody looooong overdue.

Rise China...Rise NOW.

I wonder if their domestic counterparts are paying attention?

m

Mon, 07/27/2015 - 12:51 | 6359371 hedgeless_horseman
hedgeless_horseman's picture

 

 

Yes, this time, things will be very, very different in China...

 

Growth was again the strongest in China where an increase of 25% allowed Porsche to sell 46,931 cars in 2014. China is still Porsche’s second most-important market but in 2014 only 76 cars behind the USA.

 

In China, Mercedes Benz enjoyed the strongest growth of the German luxury carmakers with sales increasing by 29.1% to 281,588 deliveries. In China, Mercedes is still struggling to catch up with Audi and BMW but in 2014, China overtook Germany as the second most-important market for Mercedes Benz car sales.

 

 

http://www.best-selling-cars.com/china/2014-full-year-china-worldwide-ge...

 

The Chinese are fat, rich, and happy.  No revolution anytime soon.

Mon, 07/27/2015 - 13:46 | 6359578 Antifaschistische
Antifaschistische's picture

well, thank God they aren't too fat yet.  :)   It's still not a bad view to follow hundreds of nicely dressed women down a chinese sidewalk...with their ponytails waving at you and petite figures.   The relationship among Chinese women is also very interesting and very non-American, where if a Chinese girl needs to lose 10 pounds the other girls will tell her straigh-up that she is fat.  Nothing like our "fat is beautiful" propoganda machine here in the United States of Fat America.  :)

Mon, 07/27/2015 - 12:47 | 6359360 rejected
rejected's picture

Any nation,,, any form of government, has their slime that have no problem popping anyone the man says to,,, and then high fiving at the pub that night.

This depicts the nation American, and other western corporations (can you say Apple)  shipped their production to and clearly shows their lack of concern over atrocities like this.

Soooo, who's the sick puppy?

Mon, 07/27/2015 - 12:03 | 6359204 KnuckleDragger-X
KnuckleDragger-X's picture

Morale isn't improving with floggings, time to drag out the guillotine....

Mon, 07/27/2015 - 12:38 | 6359327 williambanzai7
williambanzai7's picture

ASIAN OPEN

Mon, 07/27/2015 - 11:55 | 6359167 Doubleguns
Doubleguns's picture

Welcome to hotel "China market"....you can never leave.....you can never leave. 

Mon, 07/27/2015 - 11:56 | 6359173 EscapeKey
EscapeKey's picture

mt gox reloaded

Mon, 07/27/2015 - 12:20 | 6359265 Panafrican Funk...
Panafrican Funktron Robot's picture

The funny part is that most of the sellers are foreign firms whose governments would likely refrain from extraditing said "malicious" short selling participants.  

Mon, 07/27/2015 - 12:23 | 6359279 i_call_you_my_base
i_call_you_my_base's picture

I don't believe the US and China have an extradition treaty.

Mon, 07/27/2015 - 12:35 | 6359314 Panafrican Funk...
Panafrican Funktron Robot's picture

Sorry to note true things, clearly someone's attempting to catch a falling knife and failing.  China would literally have to shut down it's market access to any foreign entity in order to stop the bloodbath.  There is very little domestic selling going on here.

Mon, 07/27/2015 - 12:22 | 6359278 Antifaschistische
Antifaschistische's picture

Here's what I think is happening....this is purely a behavioural analysis.

It's not the shorters.  it's the people who were holders of the stock...particularly insiders or perhaps those holding formerly 'restricted shares' who are now seeing portfolio balances decline.  These are the people who watched their 100k position go to a million.  believing they actually had a million dollar (equivalent) portfolio they do what Chinese people do.  Chinese people are financial exhibitionist.  So, if you're a millionaire, you must show it off.  so they buy new homes, cars, purses, etc on borrowed money.  This is what I think of as the true street level leverage.   Then, when the portfolio starts to turn south...eventually, they all must get out (after all, they did just buy a $5,000 purse and a new BMW on credit).

this rush to cash out is just to cover their personal exhibitionist tendencies.  They can hide their losses in the market...sort of.  They can't hide losing their new BMW.

ps.  I love China, and like traveling in China more than anywhere else in the world.  My best friends are Chinese....so don't take this as me slamming Chinese.  

Mon, 07/27/2015 - 11:57 | 6359170 JustObserving
JustObserving's picture
Here Come The Witch Hunts

How about starting with Bloomberg that runs fake story on IMF asking China to stop its intervention in Chinese stock market causing collapse in last hour of trading.  Michael Bloomberg is a very big rat despite his small stature.

 

Mon, 07/27/2015 - 12:02 | 6359203 Deathrips
Deathrips's picture

Hear Here!

 

Maybe China should pay a visit to all those whos mothers were central bankers.

 

RIPS

Mon, 07/27/2015 - 11:56 | 6359171 EscapeKey
EscapeKey's picture

so, um, they want to stop organic activity? who do they expect to be the selling part of the trade? the central bank?

Mon, 07/27/2015 - 11:57 | 6359174 Omega_Man
Omega_Man's picture

off with their heads...

Mon, 07/27/2015 - 12:07 | 6359215 A Nanny Moose
A Nanny Moose's picture

Excuse me...what do we do with witches?

Mon, 07/27/2015 - 12:11 | 6359234 invisible touch
invisible touch's picture

hire for quidditch game...

Mon, 07/27/2015 - 12:14 | 6359242 pods
pods's picture

BURN THEMMMMMMMMMMMM!

Mon, 07/27/2015 - 11:57 | 6359178 saints51
saints51's picture

That China, what a great country!!!!!!

And the world keeps doing business with this trash and sanctions others.

I think the BRICS is going to be the most short lived bank next to the Tennessee bitch who prints money bitchz

Mon, 07/27/2015 - 12:21 | 6359270 Skateboarder
Skateboarder's picture

Any bank not founded on sound preservation of 'money' (no fractional reserve, no unfunded liabilities) will fall hard, especially in the exponential phase of the 'growth' function. Given that all currencies are in said exponential phase, there should be no reasonable expectation that an alternative BRICS bank should 'succeed', whatever that means.

Don't know much about R and S of BRICS, but BIC is corrupt as holy fuck, likely in on the whole thing from the top-down control structure perspective. Just because they are an 'alternative' branch doesn't mean they are any good. Controlled opposition, as many on ZH have figured out.

Mon, 07/27/2015 - 12:38 | 6359326 saints51
saints51's picture

Nicely said.

The squid will always have plan B. This is like you say, controlled opposition. It is nothing more than the red/blue team fiasco we have here in the usa.

Mon, 07/27/2015 - 11:57 | 6359179 Tribulation Blues
Tribulation Blues's picture

The Chinese do indeed belong to the satanic NWO see this...

http://revelation12.ca/?p=2089

Mon, 07/27/2015 - 11:58 | 6359181 10mm
10mm's picture

And after Sandy hook China stated America should be disarmed. Clear on that.

Mon, 07/27/2015 - 11:59 | 6359182 Alpacanio
Alpacanio's picture

Pssst.. I hear Jim Kramer is selling...

Mon, 07/27/2015 - 12:21 | 6359272 Mintcoin
Mintcoin's picture

Commuist party is selling. 

Mon, 07/27/2015 - 13:05 | 6359421 g speed
g speed's picture

Is Jim Rogers selling??

Mon, 07/27/2015 - 11:58 | 6359183 I_rikey_lice
I_rikey_lice's picture

WTG China! Arrest those short selling cocksuckers!

Mon, 07/27/2015 - 11:59 | 6359186 Meat Hammer
Meat Hammer's picture

That's maricious!

Mon, 07/27/2015 - 12:00 | 6359192 Bemused Observer
Bemused Observer's picture

To anyone who asks what this will do to faith in the markets, the answer is it doesn't matter. These people aren't PLANNING for future markets, they don't CARE.
All that matters at this point is outlasting the other guy. The Chinese won't let their markets tank before ours, and vice-versa. Watch for even more obvious and outrageous manipulations, from both sides, as everything starts to wobble.

The last man standing helps write the rules for the new system to follow.

Mon, 07/27/2015 - 12:00 | 6359193 Doubleguns
Mon, 07/27/2015 - 12:00 | 6359195 JimmyRainbow
JimmyRainbow's picture

yes, "illegally selling stocks" .....

have no clue of stocks and whatsoeva but that clearly sounds funny

"may i btfd, dear overlord"

"no, son, dont buy from illegal sellers"

we margined some folks came to my mind next.

Mon, 07/27/2015 - 12:01 | 6359197 Soul Glow
Soul Glow's picture

ALL YOUR STOCKS ARE BELONG TO US!

Mon, 07/27/2015 - 12:28 | 6359291 Mintcoin
Mintcoin's picture

If you can't sell it, it is not a market.

Mon, 07/27/2015 - 13:07 | 6359427 Vullsain
Vullsain's picture

You are just an old fashioned fuddy duddy. Get with the new paradigm!!

Mon, 07/27/2015 - 12:01 | 6359200 Son of Captain Nemo
Son of Captain Nemo's picture

NYSE, NASDAQ and S&P will be DDOS'd by Chinese uber hackers in 4... 3... 2... 1...

And when that happens?

Anticipate an announcement from chief of U.S. Naval Operations for CINCPAC that the U.S. Navy is seeing something too hostile for them to ignore near those disputed Senkaku Islands!...

Mon, 07/27/2015 - 12:03 | 6359206 Kaiser Sousa
Kaiser Sousa's picture

boy quite the effort to keep the Dow losses below triple digits today....

surely!

Mon, 07/27/2015 - 12:03 | 6359207 i_call_you_my_base
i_call_you_my_base's picture

Wouldn't be surprised if their markets don't open sometime this week.

Mon, 07/27/2015 - 12:04 | 6359208 Winston Churchill
Winston Churchill's picture

I see a glut of organ donors on the horizon.

Mon, 07/27/2015 - 12:50 | 6359318 Vullsain
Vullsain's picture

The Chineese authorities could use the proceeds to help backstop the margin calls, should be huge for the transplant rejection drug and bio-engineering stocks, turn some of those empty cities they have built into high end transplant destination centers, we are talking huge growth potential. The food industry and related services for example, the comfort girl stress reduction therapy companies should see significant growth in and around these transplant cities. A simple reversal of the one child policy would translate into a virtually limitless supply of transplant donors which will justify the sky high valuation of these and related Chinese stocks.

Mon, 07/27/2015 - 12:04 | 6359212 JenkinsLane
JenkinsLane's picture

Anyone else think of the Jack Nicholson/Leonardo DiCaprio "rat scene" in The Departed when they read this headline?

Mon, 07/27/2015 - 12:05 | 6359216 earleflorida
earleflorida's picture

are you shitting me? this ain't criminality-- this financial sabotage happening in china today by the west. it sounds moar like the ussa today ferreting out political descent on penn. ave. !

the witch hunts are here at home guised as 'hope & change' with a FRBs accountable to know one. communist/fascist  america is the word!

what a shitty propaganda read...

terrible

Mon, 07/27/2015 - 12:09 | 6359226 City_Of_Champyinz
City_Of_Champyinz's picture

Only a bunch of godless communists can provide (make up) the definition of 'malicious selling'.  What a complete JOKE. You can pretty much be assured that everything the red communist chinese running the 'market' is a flat out lie. 

Mon, 07/27/2015 - 12:35 | 6359313 johnlocke445
johnlocke445's picture

Well, I guess the Federal Reserve should be considered Godless Communists due to the fact that they maliciously sell short contracts of paper gold in the billions of dollars so as to protect the dollar from having to compete with gold and silver as money.

Mon, 07/27/2015 - 12:44 | 6359353 lakecity55
lakecity55's picture

Barry: "Hello, Comrades!"
(Fed Employees:) "Hello, Commandante!"

Mon, 07/27/2015 - 12:10 | 6359230 Jason T
Jason T's picture

chinese culture for ya. ... 

 

try waiting in line for something in China .. I rest my case. 

Mon, 07/27/2015 - 12:10 | 6359231 Joebloinvestor
Joebloinvestor's picture

I bet there is some Chinese government official watching "Trading Places", and declaring,"I would have made them turn back on the machines".

Mon, 07/27/2015 - 12:10 | 6359232 Everybodys All ...
Everybodys All American's picture

Anyone believe obamao would not resort to this?

Mon, 07/27/2015 - 12:13 | 6359239 i_call_you_my_base
i_call_you_my_base's picture

No. As some say here, and I agree, the US gov views the "market" as a national security issue, and under that thinking, there is no limit to what can be done.

Mon, 07/27/2015 - 12:42 | 6359345 lakecity55
lakecity55's picture

"Reggie, we may be hanging by our heels, but I would still have tried to exterminate YT!"
"That's a big pistol at your head, Munchkins. Goodbye."

Mon, 07/27/2015 - 12:11 | 6359235 Smegley Wanxalot
Smegley Wanxalot's picture

I would like to rat out:

Ma Lee Shus, Ho Lee Fuk, Wi Gok Rash, and Bang Ding Ow

 

Mon, 07/27/2015 - 12:16 | 6359248 brucyy
brucyy's picture

Interestingly , every large government with a clear tendency toward individual liberties restrictions always makes up some sort of invisible enemies/evil when the music stops .. I wonder why.

The ministry of love will take care of all your problems

 

Mon, 07/27/2015 - 12:18 | 6359254 B2u
B2u's picture

Ho lee phuk

Mon, 07/27/2015 - 12:20 | 6359267 Racer
Racer's picture

Short sellers actually help slow a drop in the market as they are 'buyers' when they are taking profits   So in fact the drop will be much faster if there are no buyers

Mon, 07/27/2015 - 12:20 | 6359268 Panic Mode
Panic Mode's picture

Pee Chi Fok da Ma Da Fuk Ka.

Mon, 07/27/2015 - 12:21 | 6359271 Bluntly Put
Bluntly Put's picture

I'm pretty sure you can't have a free market without price discovery and I'm pretty sure you can't have price discovery without being able to sell. So, again, fascism parading around as communism trying out fashionable elements of capitalism makes the oligarchy very wealthy and everyone else very poor.

It's the same everywhere you go, you can't escape from fascism so my conclusion is the nazis have won by losing WWII outwardly but they conquered the world inwardly.

Mon, 07/27/2015 - 12:26 | 6359287 M.B. Drapier
M.B. Drapier's picture

So, the secret to success in Chinese equities today is to sell more quickly than the other guys without selling so quickly that you stand out and attract the attention of the government, and without looking like you're enjoying it too much? It's true what they say, successful investment is an ever-changing challenge!

Mon, 07/27/2015 - 12:31 | 6359298 OneTinTrooper
OneTinTrooper's picture

secret is to sell 2 house and 3 apartment in San Francisco before next real estate crash in america

Mon, 07/27/2015 - 12:33 | 6359310 M.B. Drapier
M.B. Drapier's picture

At this rate I'd want to hold on to at least one bolt-hole in the US regardless of its resale value.

Mon, 07/27/2015 - 12:41 | 6359341 Bastiat
Bastiat's picture

Yeah, you can always come in through Mexico.

Mon, 07/27/2015 - 12:43 | 6359348 silverer
silverer's picture

How about a decent, comfortable mobile home on a small, cheap rented lot, month to month lease?

Mon, 07/27/2015 - 12:27 | 6359289 OneTinTrooper
OneTinTrooper's picture

When do america investigate china public listing on wall street that were fraud?

Mon, 07/27/2015 - 12:30 | 6359296 johnlocke445
johnlocke445's picture

Short selling in the traditional sense of borrowing stocks and selling them should not be allowed in these markets. There is no need to short sell a stock when you have an options market.

Mon, 07/27/2015 - 13:32 | 6359509 Panafrican Funk...
Panafrican Funktron Robot's picture

"There is no need to short sell a stock when you have an options market."

Options simply introduce leverage into the equation.  Traditional short selling involves less market risk.  Imagine what those selling calls tied to the broad indexes in China have been going through over the last 6 months.  Roller coaster on crack.  

Mon, 07/27/2015 - 12:32 | 6359304 rsnoble
rsnoble's picture

Fuck China.

Sad thing is Obama is probably drooling at what they get away with.

Mon, 07/27/2015 - 12:38 | 6359328 lakecity55
lakecity55's picture

"Damn. I could get rid of YT if this was China!"

Mon, 07/27/2015 - 12:41 | 6359340 silverer
silverer's picture

What are you talking about?  He's already way ahead of them.

Mon, 07/27/2015 - 12:37 | 6359324 lakecity55
lakecity55's picture

Even as the stock speculators were gunned down, they were writing "Long Live Mao" in their own blood against the killing wall.

Mon, 07/27/2015 - 12:39 | 6359329 Elliptico
Elliptico's picture

Yuan reserve currency?  Can't wait.

Mon, 07/27/2015 - 12:40 | 6359336 silverer
silverer's picture

Right.  Let's just skip that and go straight to silver.  No more banks, either.

Mon, 07/27/2015 - 12:39 | 6359331 silverer
silverer's picture

The little guy goes through life owning nothing.  Even all his money is borrowed and what he does with it totally controlled.  What a pathetic planet we have.  Can't imagine what this place will be like in another 1000 years.  Good chance humans won't even be here anymore at the rate they're going.

Mon, 07/27/2015 - 12:39 | 6359332 Cone of Uncertainty
Cone of Uncertainty's picture

Please pay particular attention to the final point:

 

CPK

 

1. Financial crises are part of a process. If we do not understand the process and how it links to the economy and economic expectations that are themselves unreal, we will not be able to take actions that tame financial crises in the future.

2. Financial crises arise out of excessive optimism about innovation, economic prospects and policy control. Unfortunately, optimism is also an important driver of innovation and economic growth. Human beings have to contend with these contradictions.

3. A central policy question is how to control all avenues of money expansion, personal wealth (new money) and personal credit demanded (credit demand). An important indicator of “over gearing” is when cash requirements are too low relative to the prevailing and prospective price.

4. Jawboning doesn’t help. History is littered with central bankers and Treasury officials who have cautioned against, to use former Chairman Greenspan’s term, irrational exuberance—and with the same result: rejection, even derision.

5. The process of displacement can take years, even decades, but the actual period of excess historically is very short, often only a couple of years. Thus, efforts to moderate and reduce the tendency for crisis have to rest within the ongoing economic system, including policy, and cannot be introduced only when the peak occurs. Then, it is too late.

6. Revulsion also takes years. The lender of last resort plays an important role in the healing process, but the temptation to force the process too quickly creates new problems.

7. Finally, almost all modern financial crises are international in scope.

Mon, 07/27/2015 - 13:48 | 6359596 Kayman
Kayman's picture

"The lender of last resort plays an important role"

You failed to mention the lender of last resort is really Joe Public; when Central Banks (the Fed) and governments (the bought-off politicians) tap into the "full faith and credit" of the nation.

What are we going to do when the last private-sector, non-crony, non-stock churner, wealth producer says fuck you guys and your papered-up conjured-up mirage that you call an economy.
K

Mon, 07/27/2015 - 12:41 | 6359339 Surveyor4Pres
Surveyor4Pres's picture

"And standing here tonight...

I'm afraid that I don't hear a thing."

from Margin Call.

Mon, 07/27/2015 - 12:42 | 6359344 debtor of last ...
debtor of last resort's picture

Amazing, but expected. What is it, Chicomism?

Mon, 07/27/2015 - 13:25 | 6359467 lakecity55
lakecity55's picture

Regular Americans are sick of sleazy, slimy, communist fifth columnists like McPain, Bath House, and Ms Lindsey.

"You will be Our Slaves!"

"Suck our Homosex Dicks, America!"

Homosex will be the Law of the Land! Heterosexual sex will be punished by Death!

"We will Pervert Everything America stood for. Your children will be our Sex Slaves!"

Hahahahhaha!

McPain: Look at all these kids, Bath House! Recruits for our Satanic Majesty!

Mon, 07/27/2015 - 12:44 | 6359352 skbull44
skbull44's picture

Those damn short-sellers turned me into a newt...

Mon, 07/27/2015 - 12:46 | 6359357 lakecity55
lakecity55's picture

The Kenyans may not want to go Gay, but I am hoping you Ethiopians will get in line to suck dick."

Mon, 07/27/2015 - 12:46 | 6359359 hibou-Owl
hibou-Owl's picture

the A50 is very close the 10000 support level. This level was the lull in the bull market on the way up, if it gets broken I'm short.
Free markets should be free, intervention only breeds doubt!

This dump out is going to ripple through all markets, watch the 10000 level.
China is going into a depression as consumers stop spending. Oil consumption will dive and the U.S. Credit markets are on toast.

Obama should have kept Iran on the hook a bit longer, dump arse has no sense of timing.

Buy productive agricultural land, best investment for next decade.

Mon, 07/27/2015 - 12:48 | 6359366 Downtoolong
Downtoolong's picture

Soon their mantra will be, “If you don’t own any Chinese stocks then you must have sold them. Therefore, by definition you are guilty”.

Mon, 07/27/2015 - 12:49 | 6359369 libertysghost
libertysghost's picture

The other guy did something that made me lose money on my "investment"...seems "malicious" to me.

Mon, 07/27/2015 - 12:54 | 6359385 rogerrabbithole
rogerrabbithole's picture

This is not an onion story?! Strange times.

Mon, 07/27/2015 - 13:16 | 6359443 lakecity55
lakecity55's picture

Hello. I am Bill DeBlasio, AKA frank Smith, AKA Joe Blow. AKA Joe Nicaragua, AKA Abram Funkstein.

I have read a lot of books and I am superior to all of you. I even married a nigger lesbian! I have to get sex from my kids, but nobody is perfect.

You fuckers will follow my Rule, because I am Your Intellectual Superior. The Soviet will Rule NYC!!

Mon, 07/27/2015 - 12:59 | 6359400 Clesthenes
Clesthenes's picture

“China has finally reverted to what [a] communist regime does best to preserve “order” – implement witch hunts…”

In China they do it by whim… in the US it is done by legislation.

By the act of Congress that established the Department of Homeland Security (DHS) a system was created by which informers (witch hunters) could make false allegations against anyone they please with near-total impunity.  Of course, such informers aren’t described as informers; rather they are given the title “submitting person” and the DHS Act provided that their falsehoods will never be examined by any court or legislature or law enforcement agency.  The legislation even specifies how this immunity is obtained.  The “submitting person” only has to give an “express statement” that his lies were “voluntarily given” and that he expected “protection from disclosure”.  It’s all there, in the act that created the DHS.

And the problem, from our perspective, is, ‘How do we protect ourselves from their murderous political system?’  How, for example, do we protect our property (from physical gold, to businesses, to stocks and bonds (domestic and foreign)) from seizure by the DHS?  Furthermore, how do we protect ourselves from informers now being recruited, trained and protected by the DHS?

I’m sorry guys, but silly season is over.  Even if you own physical gold, live in a cabin in the woods along with a stash of ammo and AK-47’s, you lose.  If you don’t fall to the horde of hungry homeless, you will fall to DHS death squads.  All the homeless have to do is to wait until you collapse from lack of sleep (24, 48, 72 hours), then they march in, slit your throat and… let your imagination run wild.  It seems you’d want better for your family.

If you own stocks or bonds, guess what: you’re depending on criminal and useless classes to deliver your purchasing power at the moment of their greatest victory.  Did I mention something about ‘silly season’?

If you want to survive, you have to combine with others of like mind for the purpose of mutual protection, among other purposes.  The big question now is, ‘HOW is this to be done?’  And the quick answer is, ‘You must establish First-Amendment assembliesthe only historically-proven method by which men have made their lives and property secure from rule by thieves.’

The American Revolution, for example, was powered by a large network of such assemblies: from town meetings, county meetings, state conventions and, ultimately, to Continental Congresses.

Let’s be realistic: this solution won’t be easy or quick… unprecedented adventures never are.

Mon, 07/27/2015 - 13:00 | 6359401 no1ninja
no1ninja's picture

Those DIRTY SELLERS how dare they!

 

 

Everyone knows China market only go up!

Mon, 07/27/2015 - 13:03 | 6359404 Cthonic
Cthonic's picture

https://www.sec.gov/news/press/2008/2008-211.htm

Never happen here, right?  Such prose~

  “The Commission is committed to using every weapon in its arsenal to combat market manipulation that threatens investors and capital markets. The emergency order temporarily banning short selling of financial stocks will restore equilibrium to markets. This action, which would not be necessary in a well-functioning market, is temporary in nature

~right, temporary, as in six years later, still manipulating the fuck out of our markets.

Mon, 07/27/2015 - 13:01 | 6359406 insanelysane
insanelysane's picture

Jon Corzine is buying Chinese stocks as long as he can pay for them with client funds.

Mon, 07/27/2015 - 13:01 | 6359407 CHC
CHC's picture

I hope China makes it.  I love their colorful little lawn gnomes. 

Mon, 07/27/2015 - 13:06 | 6359425 atthelake
atthelake's picture

When the Dow plunges, what will happen here?

Mon, 07/27/2015 - 13:20 | 6359466 ArtOfLife
ArtOfLife's picture

Chinext goes up 160% in six months nobody bats an eye. 
Chinext drops 40% and everyone loses their minds. 

Mon, 07/27/2015 - 13:49 | 6359600 Chuck Knoblauch
Chuck Knoblauch's picture

Propaganda and deception.

Mon, 07/27/2015 - 13:58 | 6359647 Kayman
Kayman's picture

Do the math. 100% up and 50% down and you're back to where you started.

Mon, 07/27/2015 - 13:23 | 6359479 Chuck Knoblauch
Chuck Knoblauch's picture

Is ZH being used to generate Chinese fear porn?

I'm sure the Chinks don't mind.

They hope gold goes to $900 US.

They keep buying gold.

Mon, 07/27/2015 - 13:28 | 6359494 loregnum
loregnum's picture

Humans are such dumb creatures. I don't understand how anyone can have faith in the human species given seeing the daily doses of stuipidity like this.

Mon, 07/27/2015 - 13:46 | 6359583 PrimalScream
PrimalScream's picture

Yes!!

But on the positive side - there is a Big quid-pro-quo coming.  You can't really operate an entire planet this way, and imagine the final outcome is One Big Happy Family.  It's not.  The 21'st Century should do a lot to change people's perceptions about greed, ignorance, and addiction to short-term profits  :-)

Mon, 07/27/2015 - 13:30 | 6359499 I Write Code
I Write Code's picture

They sure talk funny over there in Chinaland, maybe they do math funny, too.

Mon, 07/27/2015 - 13:33 | 6359511 Salah
Salah's picture

Their markets have turned into that Chinese escalator

http://www.telegraph.co.uk/news/worldnews/asia/china/11765015/Chinese-wo...

Mon, 07/27/2015 - 13:40 | 6359556 Batman11
Batman11's picture

Are there any other bubbles bankers can lend money into?

Debt has been around for 5,000 years but bankers still don't understand their product.

"What is wrong with a NINA (no income no asset) mortgage?" US banker pre-2008

"What is wrong with lending more money to Greece?" European banker pre-2010

"What is wrong with lending more money into real estate?" Japanese banker pre-1989

Banking, a job for every nation's half-wits.

Mon, 07/27/2015 - 13:43 | 6359564 PrimalScream
PrimalScream's picture

well ... its looks like some of the Smart Money found a way to exit China!

HAHAHAHA!!!!!

Do NOT follow this link or you will be banned from the site!