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Something Just Snapped Again In China - B-Shares Crash Most In 4 Months
Update: *SHANGHAI B-SHARE INDEX PLUNGES 7.8%
*SHANGHAI B-SHARE INDEX TUMBLES MOST IN FOUR MONTHS
As we detailed earlier...
We have seen this pattern before. In August, the first thing to tumble was Yuan FX rates, then money market rates exploded, and then the stock market tumbled. While it is a little premature, today's sudden plunge in Chinese stocks (as the afternoon session opens) following last week's spike in money market rates following the previous week's non-stop weakness in the Yuan does have a concerning smell of deja vu all over again.
Just as we saw in August, Yuan weakness was followed by sudden surge in money market rates (which was followed by a collapse in stocks)
(note - while we would expect some year-end window-dressing shenanigans in money-markets, the fact that 'panic' has not unspiked this time in 1 week HIBOR is concerning)
And that has been followed by a serious slide in Chinese stocks as the afternoon session opens...
The entire Chinese equity complex is being sold hard...
That was then...
And this is now...
Time to call The National Team... or is this the inevitable blowback from The Fed's liquidty withdrawal rippling through the illiquid links of a holiday-stymied global collateral chain?
US equity futures are below Christmas Eve's trading day lows (S&P 500 down 11 points from the late-day highs)
Charts: Bloomberg
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A Random Wok down Wall street? Sorry.
MAYBE the Shanghai index has stabilized at down 1.45% or so just now. I'm going to bed, so will have to wait until tomorrow to see.
marketwatch.com has Dow futures down just 14 points, so this likely (?) is no big deal.
Have no fear. Europe will be open soon and the ramping can begin.
… Don’t give up!
If you don’t believe in Santa Claus, you can’t have a Santa Claus Rally !
Time to execute some more short sellers with a quick bullet to the back of the head.
This post was published in the summer about China, and is a true now as it was then, if not more so.
"Something Snaps" everyday here but the markets just continue up.
There are no markets, just the Fed, central banks and laser HFT
you mean the Shenanigan Index
Cooking lessons at the ministry of silly woks.
Wat? Sum Ting Wong Wiv Ekonomi?
i saw that
STAHK MAHKET MAHST GO HIYA!!!!
indeed
See Some Ting Wong Some Ting
Oh thats right its really honestly there fault come on world with there devalution slave labor, then the rest followed DOWN THE DRAIN, hence forward.......
Don't worry, we at the Fraud intend to monetize the Chinese stock market as we have done with the U.S. federal debt, the MBS / ABS and bad consumer loan markets, so it doesn't have an effect on the U.S. market.
Keep the faith in FIAT.
They need LASERS.
Blinded by the light
Revved up like a douche'...
Momma always told me not to look into the eyes of the sun...
But Momma, that's where the fun is...
I've been up all night working the numbers. My dot matrix printer has been humming for hours and every flat space in my 350 sq ft micro apartment is covered in charts. I'm tired and bleary eyed, but all of my data points to one thing and one thing only.
BTFD
So it drops back to where it was 2 weeks ago. Meh
China's problem is obvious
They wiretapped NYSE phones and heard the way to fix economy was with algos and Goldman Sacks
Now they are stuck with tons of macaroni and a shitload of bags of the worthless yellow relic
Quick! Arrest someone!
7.5%? can i get in on that chinese money market thingy? the chinese are more capitalist than the fascist pigs at the fed imo.
Does explain why they are still buying bitcoin like crazy.
There is no Santa Claus in China.
He was arrested.
Dumping the fakes after Christmas from the Chinese Santa Claus
Does this mean China outflows accelerate, thereby tightening domestic liquidity conditions but at the same time supporting asset prices, read housing markets like Vancouver, Hawaii, Singapore, London, Sydney, HK ect?