This page has been archived and commenting is disabled.
Chinese Stocks Open Lower As Margin Debt Tumbles To 4-Month Lows, Regulators Probe Officials' Sales
Following last night's afternoon session melt-up at the hands of a $100bn injection into China's sovereign rescue fund, Chinese stocks opened higher but faded fast, with no follow-through from yesterday's farce. With Warren Buffett's favorite indicator flashing red for China (and US) stocks, and so many rural Chinese citizens "just hoping to get out at breakeven," any assistance in levitating the nation's stocks are simply being sold into as margined traders unwind their positions. One such leveraged 'citizen' is none other than State-Owned-Enterprise GM Yang Shengjun, whose firm was ironically among the most vocal in blaming the crash on "malicious foreign sellers trying tio start an economic war" and is now under investigation for dumping his own shares... do as I say Chinese people, not as I do.
A reminder of last night's farce...
The good news...
- *SHANGHAI EXCHANGE MARGIN DEBT DECLINES TO FOUR-MONTH LOW
So at least - whether through forced liquidation or common sense - the leverage is being unwound.
* * *
And tonight, for now...
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 0.4% TO 3,915.78
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 0.4% TO 3,773.79
with no follow-through from yesterday's excitment...
But, as Forbes notes, Chinese stocks are as bubblicious as US stocks (or vice versa) according to Warren Buffett's favorite indicator of equity market valuation...
And do not forget the most important chart in China right now.... just as in The US - must keep stocks above 200DMA at all costs...
There was at least one malicious seller... (as WSJ reports)
A listed arm of China’s state-owned aerospace and defense company and its two largest shareholders are under investigation for potential violation of stock-selling rules, according to the securities regulator.
AVIC Heibao Co., a manufacturing subsidiary of Aviation Industry Corp. of China, known as AVIC, said Wednesday that shareholders Jincheng Group and AVIC Investment Holdings had received notice of the investigation from the China Securities Regulatory Commission. The regulator didn’t disclose further details of the investigation.
In addition, AVIC Capital Co., AVIC Heibao’s trading arm, dismissed General Manager Yang Shengjun on Wednesday, after AVIC Capital told the Shanghai Stock Exchange that AVIC Heibao is being probed by the regulator for selling shares on Tuesday.
The massive irony is...
The investigation comes after AVIC Chairman Lin Zuoming this month criticized foreign short sellers for deliberately instigating “an economic war against China” and pledged to prop up the market by buying shares. Short sellers bet that a stock’s price will fall. AVIC couldn’t immediately be reached for comment.
AVIC Heibao said on June 30 that its top shareholder, Jincheng Group, had sold 3.39 million shares in the company for 78.8 million yuan ($12.7 million), while AVIC Investment Holdings, its second-largest shareholder, had shed all of its 16.8 million shares for 431.4 million yuan from June 5 to June 29. The two shareholders dumped a combined 5.86% of the company’s total issued shares.
Do as your leaders say Chinese people... not as they do.
And amid all this carnage... USDCNY has been deadstick...
Charts: Bloomberg
»
- 20394 reads
- Printer-friendly version
- Send to friend
- advertisements -
ALL HAIL CHINESE NOPAT!
Chinese markets can breathe a sigh of relief according to Deputy Finance Minister Wi Cha Ching; however this was disputed by the honorable Nomo Cha Ching.
Wan Mo Fiat concurs, there's skullduggery afoot here!
Round up the usual suspects ;-)
head of Chinese PPT (plunge-protection-team) Wei Tu Lo working overtime these days ...
They imported the well renowned fiat fixers Goin & Cummin ;-)
It's always nice to see ol' FL friends around here. Best to ya, nmewn!
let's all just trade our meat grisles for purple stormtroopers and circle jerk our raging salmons to a full salute then huh? srsly wtf
HAIL!
Tale of two ghosts cities , next classic
Say it aint so!
Chinese government officials are investigating Chinese government officials who are selling into the Chinese government officials printing up moar money to prop up a stawk mawkit that Chinese government officials are trying desperately to get out of, what could it all possibly mean?...lol.
Hunan nekid popcorn for everyone! ;-)
Big Trouble in Little China
Reality is not China's friend.
We are witnessing the greatest stock market crash in human history. Pegged up against the Dutch tulip bubble, the stock crashes of 1929, '87, and '08. China is crashing and the US markets are weak. US equities have been in a holding pattern for over 6 months now and the bond bubble is the largest bubble in history.
Bond prices are higher than ever on record and the amount of notional bonds is in the hundreds of trillions. The reason derivatives are so outrages is because of the bond bubble, not the stock bubble.
Sure stocks will crash when rates rise - and the Fed can control the UST rate only so long. Eventually bonds all over the world will crash and spike rates.
When the bubble pops prce discovery will be non-existent as currencies have weakened tremendously. The bond contagion will reach the dollar and all assets. The result will be the greatest loss of wealth in human history.
When all these bubbles go to poppin', I sure hope none of it gets in my eye, because it stings like a bitch. Especially if it's that homemade dish soap kind.
I agree with your prognosis, but feel compelled to observe that a market collapsing back to its real value is not necessarily destroying wealth.
It is destroying the false, artificially-manufactured pretence of wealth.
Well there is that no bid thing
you must also mean
shares traded on NASDAQ and NYSE.
After all, the all-time highs of these American markets began 6 years ago when the Fed 'thin aired' some money which it used to buy toxic assets from the banks at cost, who then turned around and put the funny money into the Dow 30.
And voila, unfalse, unartificially-manufactured unpretense.
Those naughty Chinese..... shame on them
(hurls onto keyboard)
Chinese Checkers Stock....POPPIN!!!!!
As of 10:01pm EST - Shanghai is back up 8.74pts. Down...UP...down....UP - funny how that happens.
Shandong boy Yang is also the Party branch secretary for AVIC Capital. Under Jiang and Hu almost 25% of the top military officers appointed and promoted came from Shandong. Guess who has recently purged this group and others allied with Jiang and Hu?
I'm having a laugh.
Does not matter what the SSE does tonight. US socks are going ATH by next week.
IF NORTH KOREA had a stock 'market'...
Time to break out the big guns for the Chinese government. Henceforth, ban all reporting on any stock price or index level, then no one will know if anything went down or up and confidence will be restored.
It is interesting and pleasurable to note that in the Communist-Capitalist society, it is the institutions that are slowly becoming the bagholders.
Today they pumped up the Hang Seng up to near 24900 only for everyone to sell apart from our beloved British bank HSBC Holdings who had a +2 effect on the HSI whilst ICBC, Ping An (daily seller), BoC and China Life were the largest sellers. You can monitor this here during HK trading hours:
http://www.hsi.com.hk/HSI-Net/HSI-Net
Today's DJIA close 17,751.39 x -.022 Shanghai Composite loss today = 390.5 point loss equivalent if DJIA.
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 lending into the Chinese stock market?” Chinese banker before last month
"What is wrong with lending more money to Greece?" European banker pre-2010
"What is wrong with a NINA (no income no asset) mortgage?" US banker pre-2008
"What is wrong with lending more money into real estate?" Irish banker pre-2008
"What is wrong with lending more money into real estate?" Spanish banker pre-2008
"What is wrong with lending more money into real estate?" Japanese banker pre-1989
"What is wrong with lending more money into real estate?" UK banker pre-1989
“What is wrong with lending into the US stock market?” US banker pre-1929
Banking, a job for every nation's half-wits.
More idiot bankers:
Icelandic bankers
Cypriot bankers
"Only lending to people who can pay you back?
Are you sure?
No one told me" a typical banker
Payday loans, sub-prime, student loans, sub-prime auto loans, lending into US shale ..........
Fuck China.
Fuck the Chinese.
And fuck the Chinese Stock market for, just like the American stock market, its only function is that of money laundering, i.e., a smoke screen for the fiat currencies that the bankers print out of thin air. [Bank A gives $1 to Bank B. Bank B prints $10 and gives to Bank A. Bank A buys stocks from Bank B with the money it got from Bank B and Bank B issues another loan to bank A. Rinse and repeat, with variations, ad infinitum.]
Fuck you Wall Street.
Fuck you bankers.
You are evil.
And you Chinese, despite all the BS about how clever you are, you are the stupidest race extant.
You give free shit to Europe and the US in return for electronic digits that are not even promises for something. Euros and dollars are UNDEFINED entitites, you stupid fucks.
I meant, you moronic Chinese bastards.
Come to think of it,
Federal Reserve Notes are a CRIME according to the US constitution which de jure prohibits debt-based money (notes) and prescribes gold and silver as money.
So you Americans,
You're no better than the Chinese.