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China Services PMI Rises (And Falls); Stocks Jump Led By Brokers, Exchanges On Shenzhen Trading Link Resumption
Following Caixin China Manufacturing's 'surprise' jump higher (in the face of the official PMI flat), Caixin Services PMI just beat expectations and bounced considerably to a 'healthy expanding' 52.0 (despite official Services PMI plunge), bringing the Composite PMI to 49.9 - thus proving that billions of dollars of liquidity injections, market interventions, debt transfers to SOEs, arrests, shootings, and general thuggery has fixed China. For now stocks are rallying on this news but offshore Yuan is continuing to leak back to Friday's lows. The biggest gainers are the Chinese brokerages and exchanges (HKEx is up 8%) after PBOC Governor Zhou said a trading link with Shenzhen will start this year.
Is China Fixed?
Who knows?
Chinese stocks are recovering on the 'good' news...
Led by brokerages and exchanges...Hong Kong Exchanges & Clearing Ltd. shares surged the most in four months
After the head of China’s central bank said a trading link with Shenzhen will start this year.
HKEx rallied 5.4 percent, heading for the biggest gain since July 9 and extending this year’s advance to 23 percent. China needs to accelerate the opening of its financial markets, People’s Bank of China Governor Zhou Xiaochuan wrote in an article published on the PBOC’s website Tuesday.
An expansion of Hong Kong’s exchange link to Shenzhen after a similar program with Shanghai started last November would come as a surprise to many investors who had anticipated a delay. Ten of the 13 respondents in a Bloomberg survey in September predicted the Shenzhen connect would start next year as authorities focus their efforts on stabilizing the mainland share prices in the wake of a $5 trillion selloff
ut it seems the Yuan continues to weaken...
Charts: Bloomberg
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Kan no fi xing chai na! Chai na bu lei king! Bu lei king ba do!
a lot of this positive movement is actually from Xi meeting with his TW counterpart Ma in Singapore for the first time since the civil war....
just a comment, not necessarily a reply to whatever the fuck was posted above me
Nin kan le Mei Longxin De Jongfu? Wo kan le. Wo dzai Harbin, xiexi le zhongwen.
Since July ’11 (US debt ceiling debacle), not just China but most natural sources of dollar trade surplus’ (BRICS, OPEC, domestic public (US banks, pensions, insurers)) have decreased or entirely ceased buying Treasuries. And on a general slowdown and/or abandonment of the US Treasury market by the largest buyers, US interest rates have not only not risen…but fallen by a third?
The pivot by BRICS, OPEC, etc. turning away from US Treasuries to initiate and maintain ongoing physical gold purchases coincided with a simultaneous and ongoing collapse in the price of gold (gold’s price peaked in July ’11 and has fallen by a third since?!?). Suffice to say, when the price of something collapses on ongoing record (physical) demand and the price of something else (deepest and most liquid asset in the world???) rises on a collapse in demand…these are not free market responses. When the largest and most fundamental markets act contrary to supply and demand…when the cornerstones of a market are seemingly removed…the validity of the market signals in general are clearly up for debate. Prices and relative worth seem at odds.
The link lays out China’s situation as the last (now failed) bastion of growth and the trigger mechanism changing everything.
http://bit.ly/1Q8QftS
As GW Bush said - “I’ve abandoned free market principles to save the free market system”. This policy has been doubled down by the present administration and willingly enabled (as shown above) by the Fed all along.
Why the change? The simplest and most predictable shortcoming.
http://seekingalpha.co...
By manipulating the largest and foundational interest rate and PM "markets" (ie, not allowing price discovery between willing seller and buyer...instead using HFT spoofing and/or digital fiat from heaven) it is quite safe to "invest" and with NIRP coming, debt will literally pay and leverage will be a virtue that rewards equities above all...it's just that the entire enterprise is doomed to fail due to the very fact it isn't allowed to periodically stumble or even price in possible failure!?!
Thanks Vice Public Security Minister Meng Qingfeng! ;-)
China is fixed all right, same way we fixed the dog.
I am completely fucking fed up with any news out of fucking China.
they do not measure the same thing stoopid Tyler:
Caixin Services PMI = small and mid-sized companies
Official services PMI = mostly larger state firms