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Dead Market Walking - Chinese Stock Trading Volume Collapses To 3 Year Lows
With "selling" outlawed and anything but cheer-leading strocks higher subject to detainment, it appears the Chinese government has managed to undo 3 years of liberalization and financial deregulation in the space of a week. Futures trading volume on the CSI-300 (China's S&P 500) which for a while in May became the most actively traded financial contract in the world (surpassing S&P 500 e-minis), has utterly collapsed in the last week - since the arrests and detainment of various brokerage executives - to its lowest levels in three years. As one local trader noted - Chinese index futures trading is dead.
In May, CSI-200 Futures were the most actiuvely traded financial instrument in the world - topping S&P e-minis...
But that has all collapsed now to its lowest levels inm 3 years...
in the space of just over a week...
Index futures trading is DEAD already amid all those restrictions imposed!!
HELP...
CSI300 futures vol 38,054 ? It was 500k to 1 mln !!— Simon Ting (@simonting) September 8, 2015
CSI300 futures volume was #1 and beat eMini-S&P in May~July. Today only 12,700 do far? My peers in mainland all have a long, long face.????
— Simon Ting (@simonting) September 8, 2015
Re-capitalize your zombified over-leveraged SOEs now!!
Charts: Bloomberg
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Once the down elevators doors close your effectively locked in...dont think Wall Street will be any different if it goes belly up
Best to have a variety of assets NOT controlled by Wall Street, as well as money (and gold) NOT in banks.
Other "preparations" as you judge necessary.
Wall Street = Raccoon city
Not to worry...after lunch SH was straight up 5% to close up 3%.
yeah, saw that, must be something in the noodles.
Everything is fixed bitches. Everything is awesome. http://finviz.com/futures_charts.ashx?t=HG&p=m5
If there is anything I have learned reading ZH, it is the bullishness of prices when volume is low!
One of these days Xi Jinping. POW! Right to the moon!
Regards,
Cooter
He's right about recapitalizing now though, the false security of easy money has left the building.
Cooter, POW to the moon?
Another chemical site explosion...
Bix Weir thinks good guys against bad amkra banking baddies, what do you think?
And as the Chinese regulators will tell you, dead men don't sell, so everything is fine now.
So, "dead men sell no securities", eh?
Sounds like they've been Shanghai'ed.
This is the Shanghai Composite Index for the last 25 years. The recent drop was just a healthy correction, and only a fraction the size of the one in 2007-2009.
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{%22range%22:%22max%22,%22allowChartStacking%22:true}
If you smooth out all the bubbles, you see that 3000 is right where it should be.
Nothing to see here, folks. Everybody move on.
After a bubble bursts, the index is where it should be. That does not mean a bubble has not burst.
Sure, let's ignore Red Ponzi, as if most SOEs shouldn't be bankrupt
Not so fast! Note the duration of the 2007-2009 drop, not just amplitude, and the duration of the current one. Two months! What makes you think it's done? There is certainly no sign that it is done yet (down -1.35% today). It may run down that far again and vomit its bowel out of its mouth for another 1, 2 or 3 years yet. We don't know, but there are serious reasons to expect it to have big and punctuated problems to come.
Read:
http://blog.mpettis.com/2015/09/if-we-dont-understand-both-sides-of-chin...
EDIT: haha I see the communist party immediately kicked it from -1.35% to close at +2.92%. So they blew reserves creating volatility that further damages them, and trashes Shanghai Comp cred as well. Stupid is as stupid does.
Not so fast actually.
China economy is not collapsing it is reforming. Another.misinformed post of yours.
You are right. The Chinese do not play the short game. That's for people who ride the short bus.
Americans are too myopic to see what's happening.
Low volume, small investors mostly out, down 40%. Hmmm. Might have to take a look. Right now the market there is also way below the 2007 high. Might be some pop in there but not sure I wanna be in it for the long run.
So how long can Goldman Sachs keep the US and EU markets up? I think they could keep them up if they chose to do so. I'm not convinced that they wish to keep them any higher than they have to to prevent civil disturbances. But that is only stock markets and not all financial markets so things could get beyond their control. So much FRAUD has entered the systems that at this point even FED software applications may not work.
As I have said on ZeroHedge before, why even have markets if you can't have selling? The entire purpose of a market is price discovery.
Buyers and Sellers. Or Malicious sellers.
tape reading the volume would be a dangerous thing on this quasi capitalistic chinese market.
After a brief fling with deregulation, the Chinese leadership is remembering that
they don't like losing control. They prefer their capitalism to be Statified.
State-Capitalism, forever. But then, that's the new model everywhere.
I suggest that when our housing markets start to go bust again that we forbid all Chinese nationals from selling their properties. We can refer them to their own government policies that sellers are bad people and honest markets only go up.
The Chinese government is really playing with fire...
Tienammen Square
I well remember what happened the last time the Chinese people were pushed too hard.
m
All the "China Bulls" tend to forget that China, as a nation, spent a significant portion of the last century in civil war. I think civil war is coming to China - sooner rather than later. The only game the Chinese government has left (and this applies to our government as well) is the "war game". I think Chinese central authorities will likely choose war and so will the U.S. govt - because both governments are under threat from awakening populations. Things are getting bad - I smell a false-flag on the horizon.
I can tell you have never spend time in China.
Turn off the Fox News. Get a passport and a visa. Go to the places you are speculating about, and see how far your head is up your ass.
+ 100 roddy.
Most of those speculating of an uprising in China (The U.S.A U.S.A U.S.A crowd) have never been out of their own town/city. There's more chance of an uprising in the U.S.A. and that chance is very miniscule, the sheeple are quite happy to be led to their own ruin, financially, morally and spiritually, in all Western nations. MOAR War, that'll do it, eh?
The 2nd chart looks like silver back in 2011. Sad.
Perma-bulls say you haven't lost anything until you sell. Well, China just outlawed selling, so no one will ever again lose money on stocks!
https://www.youtube.com/watch?v=OzQkX-IZDbQ
Simon Ting Wong!
Wei Tu Lo
Let the fucking thing collapse, already.
China Government has essentially closed down stock trading except in name. Restrictions are so many and opaque that no one in China dares to break them and selling now is unpatriotic just like making a negative observation of any stock or a sector of the economy. Only commodity exchanges remain liquid in Dalian where punters are many and where there is real vulnerability.
But the e-mini is ALIVE!!! it's ALIVE, I tell you. ALive!!!!
Doesn't what just happened at the London open look remarkably like the close from lst Wednesday. Off of the sam level . Same vertical move in 30 minutes and then the little extension at the top?. resistance coming in at exactly the same place.
If we were at 4PM NYT, I would expect a slow ramp up to follow and then the big drop during regular trading hours. I have no idea what this means. Has some Algo gotten it's clock setting wrong? heh.
they learned from the usa. as volume approaches zero prices tend toward infinity.
The Tylers post a lot of these articles with the same mantra. Either everyone is buying but no-one is selling or everyone is selling but no-one is buying. With my simple intellect I don't understand that. Surely for every buyer there must be a seller and vice versa? Therefore if there is any trade volume at all it surely must equally be by buyers and sellers? How can you ban selling without automatically ban buying by definition? What am I missing here in these articles?