Having thrown the kitchen sink at their collapsing ponzi-scheme of a market in the past two days, only to see stocks open and crash once again overnight [5], it appears The PBOC went full intervention-tard in the middle of the morning session. With CHINEXT down over 7% and Shnghai down over 4%, the manipulation was rooted in CSI-300 futures as while cash markets saw margin calls and liquidation, futures were surging. By the close China's 'Nasdaq' had ripped 13% off its lows and the broad market's intrday swing was the largest since 1992... The PBOC's got your back.
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 result was this...
[6]
and this...
[7]
Something had to be done!!
And so to avoid the social unrest they know is coming, "someone" was on the bid in CSI-300 all day and by the middle of the morning it was bleeding into cash markets, dominating their liquidations...
[8]
This is the biggest intrday swing in Chinese stocks since 1992. The question we are left with is, when will China start QE directly? [9] and given the flatness of the close, it appears sellers were matched with central bank buyers.
Once again - without the help of Central Banks - the fate of the world is left to illiterate Chinese farmers and Greek grannies... time to buy stawks.
