The bigger they are...
... the harder they fall
China's bubble is bursting with the weakest (fraud) links hit first as margin-loan pressure builds. After rallying well over 500% year-to-date, these 3 stocks (among many) stand out as the biggest losers:
- Digital Domain Holdings became [5]the latest Hong Kong stock to tumble after surging more than 500 percent in a matter of months, following declines in Hanergy Thin Film Power Group Ltd. and Goldin Financial Holdings
- Goldin Financial, a broker that provides short-term corporate financing, fell 43% Thursday, wiping out $12 billion of market value [6]
- Hanergy share price plunge [7]and subsequent indefinite halt dethroned Li Hejun as China's richest man
But there is still hope for even the very biggest of them all - the infamous Beijing Baofeng Technologies IPO (up 4,200% in the 55 days after its IPO) - which "pending the disclosure of an important issue" has been halted for 2 weeks now at its record highs.
Is that the trick to not killing a bubble: Halting geverything? If so that is precisely as we predicted in our observation that the entire market has noe become like CYNK [9].
So are you rich, if only on paper... or about to get the biggest margin call of your life?
Charts: Bloomberg



