In the last 2 days, PBOC has thrown everything at the ponzi-fest they call a rational market. An RRR cut, a Benchmark rate cut, a rev repo rate cut, a CNY50 Bn rev repo injection, a stamp duty cut, IPO halts (cut supply), and last but not least permission to speculate with a reassurance that shares on a solid foundation. The outcome of all this policy-panic - CHINEXT (China's Nasdaq) is down another 6% today (down 25% in 3 days) and aside from CSI-300 futures, all other major Chinese indices are in free-fall.
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The message from The PBOC:
- Don't believe or follow negative rumors against Chinese economic development
- *LOOSE LIQUIDITY TO SUPPORT CHINA'S STOCK MARKET: SEC. JOURNAL
- *IMPROVING ECONOMY TO SUPPORT CHINA'S STOCK MARKET: SEC. JOURNAL
The result:
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Some context...
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So much for these flows:
- *CHINA MAJOR BLUE-CHIP ETFS HAVE $1.5B NET PURCHASE MONDAY: NEWS
Add to that the fact that industrial metals are collapsing with steel rebar limit down...
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...and it appears Central Bank Omnipotence is under threat.
