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Chinese Stocks Tumble Despite Margin Debt Rises As Virtu Is Unleashed To Provide "Liquidity" After Citadel Ban
No lesser liquidity-providing high-frequency-trading never-a-losing-trade shop than Virtu financial has been 'allowed' to trade Chinese capital markets. Coming just days after Citadel's ban, one can only assume that Chinese regulators made a deal with the devil CEO Doug Cifu to levitate markets at any and every cost in order to pick up pennies in front of de-leveraging, over-margined army of farmers and grandmas now seeking exits. Sure enough for the second day in a row margin debt is on the rise again. The retail-dominated Chinese stock market will be ripe picking for the HFTs, as long as not to many are allowed and a tail-chasing flash-crash ensues... but for now its appears yesterday afternoon's selling pressure continues with CSI-300 down almost 2% at the open.
Each bounce yesterday saw immediate selling pressure..
All that matters for now is keeping Shanghai Composite above the 200-day moving average...
So today's key level will be what happens when SHCOMP hits 3574?
And it appears the 200DMA will be tested again...
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.7% TO 3,802.93
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.9% TO 3,625.50
As Bloomberg reports, Virtu Financial Inc., one of the world’s biggest high-speed trading firms, has started trading in its 35th country: China.
The company reached an agreement during the second quarter with a Chinese brokerage house to provide liquidity on “a very limited basis,” according to Virtu Chief Executive Officer Doug Cifu. Virtu is using automated market-making strategies to buy and sell commodities listed in mainland China. In other markets, it trades other assets including stocks and currencies.
“This agreement is the first step in what we view as a very long process,” Cifu said in a conference call on Wednesday. He did not identify the firm’s Chinese partner.
...
Mainland exchanges have frozen 38 accounts, including one owned by Citadel Securities, as the local authorities investigate algorithmic traders.
“We are certainly cognizant of the recent market volatility in China, and the regulatory scrutiny being placed on electronic trading by the local regulator,” Cifu said. “Long term, we view China as an established capital market with volumes comparable to the largest markets in which we operate.”
Virtu will confine its presence to Chinese data centers. It won’t be opening offices or “putting boots on the ground,” he said.
What does it take for famers to learn?
- *SHANGHAI EXCHANGE MARGIN DEBT RISES FOR SECOND DAY
Another crash it would appear...
* * *
Having tried (and failed) with everything so far, it seems China is willing to unleash HFT hell on their retail citizens... we suspect Virtu's agreement will be torn up if stocks drop any more..
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it will take a few days for the HFT guys to move the right equipment in..
hey slant eyes, where's your Laser.. uh DSl is over there pal..
The Chinese are totally fucking this whole thing up. Listen damn it - just ship me my dozen brightly colored lawn gnomes I ordered! After that - fuck off.
Thinking about keeping the average above the 200 DMA...
Every day, one of the big, high closes at the front end falls off that list and gets replaced with one of the current yucky low closes at the back end.
Ergo, the 200 DMA is going to go lower and lower and lower all by itself, which makes it easier and easier to declare victory in the effort to keep things above the 200.
Even if things are actually getting worse.
Which they are.
That 200 sma on the SSE was nice tyler.
ZH understands those MA's
The BoJ is shitting soft sushi fukishima turds.
China has massive excess reserves.
The good thing about getting all those cute algos working on their market is that it's starting to look like a 'real' market, a nice tight channel going up to infinity and beyond. Hey, it's only a half day's work but at this rate they will be above 6000 by the end of the month
Yes and CL will be trading the 35 handle.
I'M Joking
Actually, Iron,Oil, and other commodites are stabilizing. Those hedge Fund clowns always miss the boat.
If you want Alpha, you have to wear your "big boy" slacks. ;-)
The central bank collusion is so obvious.
Communism produces morons... from top down. And this is the proof. Revolution is on the way.
In that case the US must have been the biggest practitioner of Communism.
And now, at 22:38 EDT, http://www.bloomberg.com/quote/SHSZ300:IND
is showing complete recovery, ready for the forthcoming moonshot ...
To the Moon, Alice, to the moon!
whats an index? It is just a number, as long as we keep this number growing more suckers will invest their money in the markets.
Wrong - as usual - the CSI 300 is up at this time.
The CSI 300 started last month at this time at around 3600; as of right now it is at 3885.
The CSI 300 started last year at this time at around 2400; as of right now it is at 3885.
So, unless you waited until the market started heading south in mid June, your trading account ought to be showing a profit.
But, heck, don't let me stop you - continue your hand ringing and whining <snicker>.
By the way, do we really care if a bunch of f*cking communists go broke trading on their own exchanges? What possible interest do we really have in seeing commuist China prosper?
China is less of a "Communist country" than the US - you can't see it because you don't actually know much about either.
Your anti-communist rhetoric is a sure sign of your being a victim of prolonged indoctrination / brainwashing by the US propagada apparatus (e.g. the mainstream media, Hollywood, etc)
People like you get thrown in jail in China. As it should be.
SOEs like PetroChina, State Grid, China Mobile and major state policy banks like ICBC, BoC, CCB are state-owned with political bosses. Communism is the state control of the means of production. QED.
Thanks Tyler.
Oh sure, call in Wall Street, they'll fix it for 'ya!
Just ask Mom and Pop U.S.A. scraping by on rice and beans or dying because they can't afford their medication.
Or ask their kids or grandkids living in the basement with credit card, auto, and student load debt out the wazoo.
Long as there is some pizza or other fast slop and something on the boob tubes - the streets will be clear - if you go out and make trouble you'll get shot.
Not so sure how that will work out in China - lots more people living "closer to the bone".
A perfect storm coming up. Brought to you by the devil and his minions.
minions and toasters... Sorry, I drifted into another dimension.
Quantum Propulsion <wave> Time sort of stuff.
Jet engines are pretty passe' Hi Bipass <> turbofans
Virtu is short hand for Virtue.
The Chinese are as stupid as the Russians.
The Chinese send essentially free stuff to the US and Europe for UNDEFINED electronic digits that American and European bankers print out of thin air.
The Russians sell oil and gas to their ENEMIES the Americans and the Europeans for the aforementioned digits which only serves to perpetuate the power of the West at the expense of the East.
Wake up stupid Chinese and Russians. You are not Americans nor Europeans.
Ask for Rubles or gold for your oil. This way YOU can fix the price of your precious commodites AND of your currency, the Ruble, which will become whatever you force the EU to pay for it in terms of Euros.
Ask for Yuans or gold for your manufactured goods and rare earth metals, you stupid Chinese, so that you can do the same.
By supplying goods and services to your enemies basically for free, you're only making the monster grow bigger.
The West is going to either subdue you or kill you.
If you let them, that is.
But you Chinese and Russians, you are stupid, aren't you?
The Chinese Communist Party is allowing Virtu into the Chinese Con Markets to lure Chinese suckers back into the Big Con to be fleeced. The CCP's only mistake was the speed at which they were fleecing Chinese suckers. Well, they are tyro's at Wall Street's Big Con game. They had to bring in the First Team from Wall Street for their Con Market. Those Chinese suckers would be better off going to Macau with their pockets stuffed with Yuan.
If banksters really want inflation they need to stop supressing the metals markets and let them rise, this is the only action that will save and get all markets to rise parabolically for the final faze of the mania!!!!