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China's "Historic" 70th Victory Day Parade: Live Webcast

Tyler Durden's picture




 

For those wondering why Chinese futures aren't crashing as of this moment, only to surge in the last hour of trading like plunge protected clockwork, the reason (and also the patriotic alibi behind China's "National Team" valiant, if failed, attempts to get a green Shanghai Composite close the past three days) is shown below: this is what Tiananmen Square looked like moments ago before the start of China's "historic" 70th V-day parade celebrating the anniversary of the end of the second world war as well as China's victory over Japan, not necessarily in that order (it is still unclear if those five Chinese ships parked off of Alaska are in any way related to today's festivities).

Here, via Xinhua, is a list of China's contributions in the war effort:

  • 1 million -- Since the July 7 Incident in 1937, when full-scale war against Japanese aggression broke out, the Chinese battlefield tied up about 1 million Japanese troops, or two thirds of the total Japanese army.
  • This allowed the Soviet Union to deploy more than half a million troops from the Far East to the country's major battlefield with the German Nazis, thus accelerating its victory against Germany.
  • 1.5 million -- As the major battlefield of the Pacific War, China inflicted heavy casualties on the Japanese aggressors, costing them 1.5 million troops, which makes up more than 70 percent of total Japanese military casualties in the war.
  • 1.28 million -- After the war, more than 1.28 million Japanese troops surrendered their weapons to China, accounting for about 50 percent of those who surrendered overseas.
  • 35 million -- China was one of the crucial fighters in WWII and made tremendous sacrifices during the war. According to incomplete statistics, Chinese military and civilian casualties added up to approximately 35 million.
  • That accounts for one third of the total casualties suffered by all countries during WWII.

What makes this year's parade unique is that for the first time in addition to the countless participants from the People's Liberation Army, nearly 1000 troops from 17 countries will participate in the parade.

The preparations started early as this video of downtown Beijing confirms. Alternatively, this is what China's capital will look like once the SHCOMP is back to 2000:

Then the troops starting arriving:

... then the foreign soldiers:

... and the people:

... the occasional celebrity:

... then the generals:

Until finally Xi himself showed up:

And, naturally, the guests of honor among which none other than Vladimir Putin:

 

Finally, for those sitting in front of their computer in Chinese stock market rollercoaster withdrawal, here is a live feed from Beijing to fill the transitory void in your lives:

 

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Wed, 09/02/2015 - 22:07 | 6502712 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

This massive military demonstration was choreographed by General Wei Bang Pow

Wed, 09/02/2015 - 22:28 | 6502824 y3maxx
y3maxx's picture

I thought Bejing was perpetually smogged in?

Wed, 09/02/2015 - 22:40 | 6502863 Manthong
Manthong's picture

They might have shut the factories down and banned traffic there  a month ago.

Hmm.. I wonder if that could possibly affect their economy somehow.

 

Wed, 09/02/2015 - 22:46 | 6502896 Richard Chesler
Richard Chesler's picture

Flied lice and cilcus!

 

Wed, 09/02/2015 - 22:51 | 6502912 redpill
redpill's picture

Goosesteppin' just never goes out of style

Wed, 09/02/2015 - 22:55 | 6502929 Son of Loki
Son of Loki's picture

I wonder if their feet hurt at night?

Wed, 09/02/2015 - 23:14 | 6503001 y3maxx
y3maxx's picture

Pentagon making a phone call...

Mr. President, we need a lot more money for Arms.

Wed, 09/02/2015 - 23:59 | 6503108 Stainless Steel Rat
Stainless Steel Rat's picture

I imagine there are many teary-eyed thanks from their fellow countrymen for securing their freedom.   These types of displays always make me think of people crying tears of gratitude for the likes of Kim Jong-Un.

Thu, 09/03/2015 - 03:48 | 6503365 cookie nookie
Thu, 09/03/2015 - 07:43 | 6503587 Max Steel
Max Steel's picture

troll

Wed, 09/02/2015 - 22:55 | 6502931 y3maxx
y3maxx's picture

If they fight like they march....scary.

Thu, 09/03/2015 - 01:38 | 6503252 bid the soldier...
bid the soldiers shoot's picture

 

Marching.

That's the way to teach conscripts discipline.  

A disciplined army is the best army.

Quality of weapons and number of soldiers being equal.

Thu, 09/03/2015 - 06:04 | 6503474 nmewn
nmewn's picture

Well, the peep's now have their "marching" orders for Monday,  buy government owned stawks!!!

Backed by bayonets ; -)

Thu, 09/03/2015 - 01:42 | 6503257 Farqued Up
Farqued Up's picture

Hilarious!!!

Wed, 09/02/2015 - 22:29 | 6502832 Stuck on Zero
Stuck on Zero's picture

Did he invite the Japanese ambassador to the festivities?

Wed, 09/02/2015 - 22:37 | 6502862 Ms No
Ms No's picture

Yes, he declined.

Wed, 09/02/2015 - 22:44 | 6502887 thetruthhurts
thetruthhurts's picture

Hey...With 1,330,000,000 in population....wow! And all coodinated by We-Fookem -Young

Wed, 09/02/2015 - 23:12 | 6502989 stant
stant's picture

Is there a fly over by some p 40 war hawks ?

Wed, 09/02/2015 - 23:28 | 6503051 junction
junction's picture

I will watch this live in a few years when the People's Liberation Army marches its troops and vehicles down Fifth Avenue, Manhattan.  After Goldman Sachs sells out the USA.  

Wed, 09/02/2015 - 22:07 | 6502715 pot_and_kettle
pot_and_kettle's picture

Heh .. notice everyone being careful to not step in front of Putin as he was walking next to the CH Prez? Those two men had all the room they wanted :p

Wed, 09/02/2015 - 22:07 | 6502716 Bunghole
Bunghole's picture

Is the chick in the orange pantsuit related to Hillary?

Wed, 09/02/2015 - 22:13 | 6502754 DirkDiggler11
DirkDiggler11's picture

Just waiting for more "explosions" to mark the beginning of the parade ...

Wed, 09/02/2015 - 22:19 | 6502776 pot_and_kettle
pot_and_kettle's picture

Then look for PBoC to dump about 100B USTr per day over the next week. How does one say in Mandarin " try it and I will put your dick through the ringer " ?

Wed, 09/02/2015 - 22:14 | 6502756 pot_and_kettle
pot_and_kettle's picture

Xi's mentioned " Japanese aggressors / invaders " half a dozen times in the first 5 minutes.

Somewhere Abe's head has exploded.

Wed, 09/02/2015 - 23:54 | 6503098 earleflorida
earleflorida's picture

please read some books about  how the Jap's treated the Chinese, and then come back!

losing one's head by exploding is no different than beheading

please read...[?]

"On the eve of WWII parade, Xi slams 'fiendish' Japanese invaders"  9/2/15

http://atimes.com/2015/09/on-eve-of-ww-ii-parade-xi-slams-fiendish-japanese-invaders/

'break on through'(to the other side)  the doors

http://www.youtube.com/watch?v=6BIjCw2_Uik

Thu, 09/03/2015 - 07:49 | 6503599 pot_and_kettle
pot_and_kettle's picture

How does what I wrote make you understand that I said the Chinese weren't victims?

Not even Poe's law can excuse your comprehension skills

Wed, 09/02/2015 - 22:17 | 6502771 Joe Tierney
Joe Tierney's picture

Gotta love that commie pinko fag carpet the CH prez is standing on while he gives his speech.....

 

Thin audience....looks bored too...

 

General Fang Ban Dong and General Bing Tang Bling are our hosts....

 

Ok - finally - the marching soldiers!

Wed, 09/02/2015 - 22:17 | 6502773 DirkDiggler11
DirkDiggler11's picture

All of this shit just so folks can buy a cheaper I-Phone.

Fuck You Apple.

Wed, 09/02/2015 - 22:25 | 6502791 SSRI Junkie
SSRI Junkie's picture

i was hoping to see shots of dead short sellers after being run over by tanks

Thu, 09/03/2015 - 01:29 | 6503236 bid the soldier...
bid the soldiers shoot's picture

Blankfein would have paid someone to take his place.

Wed, 09/02/2015 - 22:24 | 6502795 duo
duo's picture

China is lucky that the Japanese surrendered to the US before the Soviets had actually entered the war against Japan.  FDR promised Stalin some choice land and ports on the coast in exchange for joing the war.  Lucky for the Chinese, Stalin renegged on pretty much everything agreed on at the Yalta conference, forcing Truman's hand.

A good part of northern China would be Russian territory if the Japanese hadn't ended the war when they did.

Wed, 09/02/2015 - 22:49 | 6502902 pot_and_kettle
pot_and_kettle's picture

stop Bogarting that shit.

Thu, 09/03/2015 - 04:35 | 6503409 Lea
Lea's picture

"China is lucky that the Japanese surrendered to the US before the Soviets had actually entered the war against Japan."

Japan didn't surrender before the Soviets entered the war.
Rather, Japan surrendered because the Soviets had entered the war.

Check your dates and your history.

http://foreignpolicy.com/2013/05/30/the-bomb-didnt-beat-japan-stalin-did/

Thu, 09/03/2015 - 04:52 | 6503428 Ghordius
Ghordius's picture

Lea, I hope you do realize that I am not the only one that sees this very interesting article you have linked, while using a refreshing "unorthodox" view...

... as part and parcel of a new thrust to clean the name of Stalin and to make his words and deed more palatable again, together with efforts to highlight (rightly, imho) the gigantic effort that the Soviet Union put into the second world war

yes, the meme of "we surrender because of the new technology, the nuclear bomb" was embraced, fully, by the Japanese government, because it gave an easy explanation for a lot of thorny questions

yes, the Soviets "entering the war" (more: likely to engage soon in serious operations against Japan) was an additional reason, and a powerful one

but as the article itself highlights, the Japanese government wanted to end the war anyway

the only open questions were terms, with the Americans asking for this unprecedented, newfangled thing of them: unconditional surrender

so we could argue that they would have sought peace anyway, even without nuclear bombs over Hiroshima and Nagasaki and even without the Soviet Union looming over the horizon

Uncle Joe Stalin: the last man on earth I would have expected anybody would try to rehabilitate, and yet, there we are

Thu, 09/03/2015 - 05:52 | 6503459 Lea
Lea's picture

"while using a refreshing "unorthodox" view..."

I'm not using an "unorthodox" view, refreshing or other. Duo's dates were wrong. Japan surrendered after the Soviets got in.
That's history.

 

Thu, 09/03/2015 - 07:15 | 6503540 duo
duo's picture

They (the Soviet Union) agreed to join the war and had some materiel in position, but didn't attack until the morning of August 9.  Stalin had to decide whether to keep raping/dismantling Eastern Europe or move his armies East to take on Japan (which would have taken months).  Stalin had promised Truman they would attack in mid-September when enough troops were in place, and made a token attack after Hiroshima to try to grab some territory.

True, Japan had asked the Soviets to broker a peace deal, with conditions, with the US, which was turned down.

The Soviets declaring war and actually fighting on the Asian front are two different things.  I hope historians can dig up documents from imperial Japan about discussions whether it was wise to surrender to the "Allies" and end up like Germany, or to the Americans alone.

Wed, 09/02/2015 - 22:29 | 6502828 bluskyes
bluskyes's picture

Where's Kim Jong?

Wed, 09/02/2015 - 22:33 | 6502848 ebworthen
ebworthen's picture

I sure hope nobody in the U.S. has delusions that we're going to be able to put China down like we did Japan.

Those days are long gone, by 40 years at least.  Same for Russia, though Germany failed in WWII so...

Wed, 09/02/2015 - 23:08 | 6502977 Arnold
Arnold's picture

Napoleon as well.

Remember , Winter is their only reliable allies.

Thu, 09/03/2015 - 01:27 | 6503234 bid the soldier...
bid the soldiers shoot's picture

And it shows up like clockwork

Wed, 09/02/2015 - 22:34 | 6502850 Joe Tierney
Joe Tierney's picture

I wonder if we'll see the new My Dong Walla Walla Bing Bang DF-21 Stiffie carrier-killer missile that China will use on US Carriers? It's a ballistic maneuverable reentry vehicle that travels at Mach 10. China can build 1,200 of them for the cost of one carrier. FT.com says it's changing the balance of power in the Asia-Pacific region.

Thu, 09/03/2015 - 04:41 | 6503414 blabam
blabam's picture

These puppies will render all their missiles mute. https://www.youtube.com/watch?v=-uV1SbEuzFU 

Thu, 09/03/2015 - 05:31 | 6503446 optimator
optimator's picture

They can build 1200 of them, but getting ready to launch even one could pose a serious problem as we pre empt.

Wed, 09/02/2015 - 22:36 | 6502852 Handful of Dust
Handful of Dust's picture

Just show all those babes in uniform. Forget the rest.

Wed, 09/02/2015 - 22:35 | 6502853 Ms No
Ms No's picture

The air looks strangely breathable, also I have seen a couple pics now where Xi has bright colored orbs around his head either the sun hits him just right or he has big Chi.  Obama doesn't have big Chi he has big wookie.

Wed, 09/02/2015 - 22:40 | 6502855 tarabel
tarabel's picture

 

 

The Chinese people suffered horribly as a result of Japanese rapacity but it would be wrong to imply that Chinese efforts had any but the most tangential effect on the outcome of the Pacific War or of Russia's war against Germany in Europe.

Japan had a special 600,000-man army group (to use western terminology) known as the Kwantung Army especially sited in Manchuria to fight Russia. Yet an undeclared war in 1939 at Khalkin Gol resulted in such a beating for Japan that they had no appetite for a return bout with the Soviet Union unless and until Germany won on the other side of the world.

Yet the Siberian armies remained pinned in the Far East until Dr. Richard Sorge, allegedly a Nazi journalist but actually a Soviet agent, discovered the truth about Japan's hesitation to stab Russia in the back-- a deed for which he was eventually awarded the title "Hero of the Soviet Union". Siberian troops were shifted west and the Germans beaten back from the suburbs of Moscow. Chinese armies, busy mostly fighting each other in the unoccupied areas remaining to them while Japanese garrisons looted and raped and murdered to their heart's content, had zero impact on this strategically significant shift.

Like it or not, this was a war between the Imperial Japanese Navy and the United States Navy. So long as the IJN controlled the seas, the war went well. Once the Americans recovered from the shock and loss of the early period of Japanese expansion, Japan was doomed to defeat and campaigns in China were nothing but a backwater event so far as the actual outcome of hostilities was concerned.

I'm glad that someone remembers what evil regimes the Axis powers were and rejoices in their downfall. Too bad it isn't the government of the US.

Ding Hao (Work Together) was once the watch phrase of the Flying Tigers-- American pilots and ground crews who volunteered to help China fight Japan prior to Pearl Harbor.

Wed, 09/02/2015 - 23:03 | 6502958 ASACJon
ASACJon's picture

Japan was brutal, no question.  Then again, Asia in general has a rich (recent) history of hideous, fiendish treatment of enemies.  Certainly, the Communists did their share in bloodletting once they had power. 

And while Germany was pretty harsh, I don't think they were outdone by the Soviets.

Historically speaking, as you point out, China's armies were not the major factor in defeating Japan.  But is that what this parade is really speaking to?  Of course not- they are all to happy to show off some legitimate strength.

It is no coincidence that the day of the parade, they also deployed five ships to the Alaskan coast.  This entire thing is screaming, 'Yankee, take notice: We can direct things in Asia going forward.'

This is quite a show, I have to admit.  I cannot imagine something like this being pulled off in the US, let alone with the foreign honor guards.  

I'm afraid our time as the world superpower is about over.  For too long we have relied on scheming, scamming, lies, greed, etc.  And now the hot thing is to act like 'gender queer' and homosexualism are the most crucial elements to a society. 

Looks to me the world is ready for a realignment in the power structure.

 

Wed, 09/02/2015 - 23:28 | 6503035 Arnold
Arnold's picture

Two great posts.

The world today is built on Financial Empires (admittedly a keyhole view on my part) and although endless interesting , the conflicts  of the Twentieth century cannot predict the conflicts of the Twenty first century with any accuracy.

However the pogroms and genocides of the Nineteenth century are a different story..

I am working to flesh out this brash business a bit more fully.

Thu, 09/03/2015 - 00:11 | 6503129 conscious being
conscious being's picture

Pearl Harbor was a crime, inflicted on 2,000 dead American service men by Roosevelt. Yes, the Japanese did their part, but it was the highest levels of DC that moved the aircraft carriers out of the way, failed to pass on intel warning of an attack, failed to pass on early morning destruction of Japanese mini-sub, etc. What was that that Kissenger said about military men?

Thu, 09/03/2015 - 04:49 | 6503424 blabam
blabam's picture

@conscious being had they done a preemptive strike you would be bitching on Zerohedge right now about the US's senseless act of aggression against the Japs. And before anyone mentions the US sanctions against Japan, they were a response to the Japanese raping of China. 

Thu, 09/03/2015 - 09:35 | 6503958 Luther van Theses
Luther van Theses's picture

The Communist Party of China carried on a huge guerilla campaign against the Japanese invasion. It started well before the U.S.-Japan war.  The Kwantung Army (minimally 600,000 troops, figures vary) was tied up in China. That was a huge factor in  Japan's defeat. Meanwhile the Chinese government army of Chiang Kai-Shek twiddled its thumbs. The contrast between Communist resistance and Chiang's passivity was one of the main reasons the people supported the Communists in the civil war that followed WW II, and brought the Communists to power in 1949.

So long as Mao led them the Communists really were Communists, btw. That's why capitalists hate him and people love him. 

Oh yes, Stalin: everything the United States Ministry of Truth says about Stalin is wrong.  The only reason a Ministry of Truth is needed - and the U.S. has the world's worst - is to tell lies.

Wed, 09/02/2015 - 22:40 | 6502864 Handful of Dust
Handful of Dust's picture

So didn't Barry and Canada's PM attend? Too busy playing golf with Reggie?

Wed, 09/02/2015 - 22:42 | 6502874 aaaaaa aaaaaa
aaaaaa aaaaaa's picture

vicoty of jews trough communist enslavery of asian people

 

they are celebrating their own slavery

 

Wed, 09/02/2015 - 22:47 | 6502895 Son of Loki
Son of Loki's picture

Did you see that cutie on the trumpet; she has quite an embouchure.

Wed, 09/02/2015 - 22:50 | 6502904 mijev
mijev's picture

I wonder if they'll let off a few fireworks. Maybe Tianjin was just a trial run for the real thing.

Wed, 09/02/2015 - 22:50 | 6502905 runswithscissors
runswithscissors's picture

victory for the oligarchy! YAAAH

Wed, 09/02/2015 - 22:53 | 6502921 xcehn
xcehn's picture

O/T Something everyone in the ZH circle should be aware of, especially as increasingly the SHTF--suggest reading the entire crazy scary article:

"women criminals are using new trick of blowing drug powder in victim's faces, leaving them like zombie's who'll do ANYTHING
A gang suspected of using a powerful Colombian drug has been arrested
The women were blowing the powder into the faces' of their victims in Paris
Known as Devil's Breath, the drug puts its victims into a compliant trance
It was used by the CIA as a truth serum and the Nazis in cruel experiments"

http://www.dailymail.co.uk/news/article-3220379/The-danger-Devil-s-Breat...

Wed, 09/02/2015 - 23:15 | 6503003 Ms No
Ms No's picture

Thanks for the tip I will add this to my collection of rapies ( ;  The drug is authentic but the way they are tying it to the Chinese sounds a bit odd.  Chinese gangs getting a super spooky drug from Columbians and using it on unsuspecting Europeans is the part where it grows iffy.   

Thu, 09/03/2015 - 05:23 | 6503440 Lea
Lea's picture

"Known as Devil's Breath, the drug puts its victims into a compliant trance
It was used by the CIA as a truth serum and the Nazis in cruel experiments"

It's called scopolamine, it's extracted from the tree called Brugmansia, it's a kind of datura and it's as old as the hills.

I've checked the story. It was a gang of two Chinese women attacking only other Asians, generally elderly people. They enticed their victims with the supposed curative powers of the powder they used, so the gullible victims, all believers in the powers of Chinese medicine, were lulled into absorbing it willingly. Which is ugly enough, but thankfully, the two woman have been caught.
The Daily Mail story has been embellished for you gullible and unsuspecting readers (also called suckers) to believe in Zee Return Of Fu Manchu, Zee Chinese Nasty Crool Evil Genius With the Demonic Laughter Who Attacks Whiteys.

BTW, there are lines of 'Murikans and other gullible Westerners going to the South American jungles to swallow a mixture of scopolamine and ayahuasca in the belief they'll see Zee Secrets of Zee Universe. Same scam. The only thing they truly ever see is the bottom of their wallet.

Wed, 09/02/2015 - 22:53 | 6502923 mijev
mijev's picture

The figures in the article regarding japanese troops don't add up at all.

Wed, 09/02/2015 - 22:57 | 6502937 mijev
mijev's picture

I like XiJinPing's righteous indignation about Japan refusing to apologize for its war attrocities, but that he fails to mention he is standing in the same place that his party crushed a student protest back in 89(?).

Wed, 09/02/2015 - 23:51 | 6503091 Arnold
Arnold's picture

Hypocrisy is common in all cultures.

Thu, 09/03/2015 - 01:16 | 6503221 bid the soldier...
bid the soldiers shoot's picture

are you refering to Kent State?

Wed, 09/02/2015 - 23:07 | 6502972 Son of Loki
Son of Loki's picture

The Russians soldiers look 14 years old. So frigg'n young!

Wed, 09/02/2015 - 23:16 | 6503007 ajax
ajax's picture

 

 

V. Putin is the guest of honour - standing to the right of Xi Jinping during the entire military parade.

Wed, 09/02/2015 - 23:17 | 6503010 Element
Element's picture

Hope no engine parts hit anyone.

Wed, 09/02/2015 - 23:30 | 6503058 reader2010
reader2010's picture

That's lots of moola right there.

Wed, 09/02/2015 - 23:54 | 6503097 Karaio
Karaio's picture

Uai!

No saw no Latin, blond black or fat in the parade!

Anyone out there seen a gay Chinese?

Certainly not the US Army.

Kkkkkkkkkkkkkkkkkkkk

I'll tell you something for you ...

China and Russia need military.

Brazil does not.

When a foreigner comes to Brazil, from north to south, we speak the same language.

If the guy falls by plane or ship comes, not speak slang, she dies.

From north to south, east to west, 4.500Km either way the guy is screwed.

hehe.

Thu, 09/03/2015 - 01:12 | 6503218 autofixer
autofixer's picture

 O que a foda? 

Thu, 09/03/2015 - 00:05 | 6503119 Ms No
Ms No's picture

Interesting that Kissinger's view is being aired by CNTV.  WTH, is there no corner of the globe that is safe from that bastard?

Thu, 09/03/2015 - 00:49 | 6503192 Deathstar
Deathstar's picture

That kike should have suicided decades ago. The
world would now have been a much better place without that POS.

Thu, 09/03/2015 - 00:12 | 6503132 Karaio
Karaio's picture

The world is getting smaller for citizens of the United States of America.

The hegemony is over.

Israelis will the same, make no mistake.

The rest of the world is fed up.

hehe.

Thu, 09/03/2015 - 00:37 | 6503172 hedgiex
hedgiex's picture

Symbolic. Flashing to US the China-Russia Axis and that it will not be pushed around thru Proxy Japan. Marshaling the People is not a gimmick and do not underestimate the sacrifices that the Chinese can endure. Take them seriously on where they have drawn the red lines. Sadly, it is resonating wuth the People.

Thu, 09/03/2015 - 03:12 | 6503336 bid the soldier...
bid the soldiers shoot's picture

A better flick than a ZH article

Crouching Day Trader, Hidden Drag Queen

The author of this Faux article, who has all the sarcasm of a girl scout, would have the urbane ZH reader believe that the reason that Shanghai Composite went from 2235 in October 2014 to 5166 in June 2015 was because suddenly, out of nowhere, 40 million farmers and noodle shop proprietors all ran down to their local Merrirr Rynch and opened margin accounts.  Then they all bought stock on margin and sent the total margin debt from a mere 500 billion yuan to almost 2.5 trillion yuan in 6 months.

And then when these farmers and dumpling makers saw what they had done, they sold out like too much kung pau.

 

The other version of this story, which our esteemed author won't even mention in a footnote, is that China changed it's rules in November 2014, which is also coincident with the explosion of the Shanghai Composite and the increase in margin debt:

A major change is underway in the structure of the Chinese stock market - and by extension the global stock market.

The launch of the "Stock Connect" link between the Shanghai and Hong Kong stock exchanges on November 17, 2014 relaxes restrictions that historically split the Chinese stock market between shares targeted at local investors and those available to international investors.

The Shanghai-Hong Kong Stock Connect allows mainland Chinese investors to purchase select Hong Kong and Chinese companies listed in Hong Kong, and lets foreigners buy Chinese A shares listed in Shanghai in a less restrictive manner than has previously been the case.

The new regime may unleash significant fund flows in both directions as mainland investors get the chance to invest in major Hong Kong and Chinese companies that are listed only in Hong Kong, and as foreign investors gain access to the A-share market. Quotas will limit the size of the flows in either direction.

The scheme creates a single ‘China’ stock market that ranks as one of the three biggest in the world by market cap and daily trading turnover. For international investors, it adds more than 800 companies of US$1 billion or greater market capitalization to the investable universe. The move may help diversify the portfolios of Chinese investors, increase efficiencies for trading in Chinese companies that are dual-listed on both exchanges, and prompt rapid inclusion of Chinese stocks in global benchmark stock indices.

Given the magnitude of the changes, the Global Investment Research Division published a report, "SH-HK Connect: New regime, unprecedented opportunity" to help investors analyze the potential effects and structural investment opportunities. The report also explores the market impact of the liberalization and the future roadmap of the new trading regime.

What does this Goldman Sachs report have to say?

September 11, 2014 China Strategy SH-HK Connect: New regime, unprecedented opportunity Portfolio Strategy Research The ‘new’ investment case for China for global/A-share investors SH-HK Stock Connect: Redefining the Chinese equity market The Connect scheme brings China A to the global arena and potentially unleashes significant portfolio flows from China to HK. We provide a framework for the new market landscape for global and A-share investors. Global investors: China A is too important to ignore 1. The scheme creates a single ‘China’ market which ranks as the 2nd/3rd largest globally by cap/turnover, and adds 855 US$1bn companies to the investable universe. 2. China A will likely be included in global benchmarks soon, based on Korea’s and Taiwan’s experience. 3. Global investors may be able to trade China growth more efficiently in China A. Key micro overlays for stock picking may revolve around scarcity value, GDP proxy, high/stable yields, QFII ownership, and proper management incentive. A-share investors: Diversification, undervalued growth in HK The scheme allows Chinese households to diversify their inefficient asset allocation: 72% in property, 6% in equities. Their investment behavior and demand for diversification suggest they may focus on: (1) mid-cap growth stocks, including select dual-listed H on possible re-rating; (2) HK blue chips with global footprint; and (3) household brands not available in A. Think ahead and get prepared a) Future roadmap of the scheme; b) A-H valuation convergence; c) market impact of liberalization; d) end game for B shares; e) competition between SH and HK ; and f) business challenges for investors This report is a modified version of SH-HK Connect: 

http://www.goldmansachs.com/our-thinking/pages/stock-connect/report.pdf

 

 If the government makes a law allowing Goldman Sachs to carry a gun and then Goldman Sachs robs you blind, who's to blame?

The Government or Goldman Sachs?

Thu, 09/03/2015 - 03:20 | 6503341 gmak
gmak's picture

Has anyone else noticed how calm the overnight markets are with China closed? Is this deliberate on the part of BoJ nd ECB, or has China ben venting their hedges through e-minis overnight? (sure, they have) /sarc)

Thu, 09/03/2015 - 03:27 | 6503350 gmak
gmak's picture

oops. spoke too soon. Here's the delicate touch of the EB. lol. Stomp stomp stomp. BUy buy buy. 

 

Even Marc Faber has started to mutter: tick tock. tick tock. living inside  a broken clock.

Thu, 09/03/2015 - 05:25 | 6503442 Infinite QE
Infinite QE's picture

Maoist China: One of the greatest mass murders of a country's own citizenry, zio-sponsored of course via the bolshevik wing of the joos.

Thu, 09/03/2015 - 06:01 | 6503473 Lea
Lea's picture

"Maoist China: One of the greatest mass murders of a country's own citizenry, zio-sponsored of course via the bolshevik wing of the joos."

Do you 'Murikans ever do your homework before you speak?
Mao was a bitter enemy of the USSR.

https://www.marxists.org/subject/stalinism/origins-future/ch3-1.htm

Thu, 09/03/2015 - 06:24 | 6503488 Infinite QE
Infinite QE's picture

Utter nonsense. They were both sponsored by the same entity, with the same agenda. Population re-engineering and mass slaughter. Both verifiable facts. Both transferred the great wealth of old line family systems into the hands of Rothschild agents, leaving the countries broke and starving. Again, all verifiable fact.

Thu, 09/03/2015 - 07:40 | 6503580 dsty
dsty's picture

ya ya ya

communism has no sympathy for human rights

you are a piece of material belonging to the state

you are expendable

that is communism

stop the zio bs

Thu, 09/03/2015 - 07:44 | 6503592 Infinite QE
Infinite QE's picture

Who created communism ace? The joos. Fact. Now go back to watching teevee.

Thu, 09/03/2015 - 08:34 | 6503692 Dien Bien Poo
Dien Bien Poo's picture

If you dont count the genocide of American Indians by American Europeans ? Mirror anyone?

Thu, 09/03/2015 - 05:38 | 6503450 optimator
optimator's picture
China won the war.  Watch the film of them signing the surrender ceremony in Tokyo bay on board the Chinese battleship Missouri.  Fleets of their Bejing B-29's burned out all the Japanese cities, and don't forget how their navy sank the four elite Japanese aircraft carriers at the battle of midway, the turning point of the war.  Most of the Chinese fighting was between Mao and Chung anyway.
Thu, 09/03/2015 - 07:42 | 6503585 dsty
dsty's picture

those carrier destroyer missiles are not just for show

when the time is right they will use them

we are watching the decay on live tv

soon enough the hammer will come

your financial schemes ......pooooof

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