Chinese Regulator Blames Ongoing Market Crash On "Rumors", Demands Traders "Act Rational"

After soaring exponentially over 100% in the past 12 months, amid spiking margin debt for illiterate farmers and housewives, Chinese regulators appear upset that their stock market 'wealth creation' model is failing hard. CSRC just released a statement clarifying why it is happening ("clearly profit-taking"); who is to blame ("The Government hopes investors can make independent judgement; Don't believe or follow negative rumors against Chinese economic development,"); and what to do next - Buy because it has "ample liquidity to meet investor needs." The regulator ends with a stunner - demanding investors "act rationally."

First this:

  • *CHINA’S CSRC SAID TO CONSIDER SUSPENDING IPOS AMID MARKET SLUMP

But how is anyone going to make 500% in a month?

And then, as The South China Morning Post's George Chen explains, the blame game begins:

Recent big, rapid falls in stock market is naturally a result of profit-taking -Chinese regulator CSRC spokesman statement tonight

 

CSRC spokesman: rapid correction won't do good to healthy, stable development of stock market; risks of margin calls are still under control

 

CSRC spokesman: No change in general situation of stock market; it still has ample liquidity and meets demand of investors' asset allocation

 

CSRC spokesman: Chinese Gov will continue to open up capital markets and welcome foreign investors for long-term capital purpose to invest

 

CSRC: recently some negative, irresponsible rumors in market against China's achievement of economic reform try to shake investor confidence

 

CSRC: The Gov hopes investors can make independent judgement; Don't believe or follow negative rumors against Chinese economic development

  • CHINA'S CSRC URGES INVESTORS TO BE RATIONAL ON MARKET

Yep - looks rational all the way...

Acting rationally? So is the CSRC urging investors to keep selling a market that is trading at a 50x P/E?

 

In conclusion, Chinese regulator just blamed market rumors for main cause of recent stock crash. Foreign interference again after OccupyHK?

And finally there's this...

  • *CHINA MAY CUT STAMP TAX FOR STOCK TRADING: ECONOMIC OBSERVER

Because that's exactly what is holding them back!!