amiret Posted July 11, 2015 Author Posted July 11, 2015 The Govt rescues the Chinese stock markets with Public money and tries desperately to re-inflate their precious bubble. Familiar story of Capitalists begging for socialist bailouts : " Chinese stocks rose strongly for a second day on Friday, buoyed by a barrage of government support measures. Over the past two weeks Chinese authorities have cut interest rates, suspended initial public offerings, relaxed margin lending and collateral rules and enlisted brokerages to buy stocks, backed by cash from the central bank. " Nearly half the listed Companies have stopped Trading ! :haha: Around 1,300 of China's listed companies - nearly half the market - remained suspended after a scramble by firms earlier in the week to escape the carnage by having trading in their stock halted. About 60 companies resumed trading on Friday They even banned selling by large Shareholders The frantic efforts to stem a more than 30 percent market slide finally began to gain traction on Thursday, when shares rose around 6 percent after the securities regulator banned shareholders with large stakes in listed firms from selling. Government is compelling it's agencies to buy stocks : "They can probably stabilize the market, but it will be a political decision, as they will have to compel government, state agencies, banks, pension funds, insurance companies to buy," said Ashok Shah, investment director at London & Capital. Long live Chairman Mao and death to free markets. http://finance.yahoo.com/news/china-stocks-jump-again-beijing-034359133.html
amiret Posted July 27, 2015 Author Posted July 27, 2015 Shangai Comp crashed 8.48 % Today ! After bouncing back over 10 % from the 1st week of July after Govt moves to rescue the market .
randomGuy Posted July 27, 2015 Posted July 27, 2015 Shangai Comp crashed 8.48 % Today ! After bouncing back over 10 % from the 1st week of July after Govt moves to rescue the market . Not for the weak hearted, these Chinese markets:giggle: simple maths tells that 10% rise is erased by ~9.1% fall from highs. So, 0.6% more fall should erase all the gains:cantstop:
amiret Posted August 11, 2015 Author Posted August 11, 2015 Indian Rupee at almost 22-23 Month low , Oil down 4% after Yuan devaluation Investors around the world were taken by surprise on Tuesday after the People's Bank of China (PBoC) devalued the yuan by almost 2 percent against the U.S. dollar, causing the currency to suffer its biggest fall in over two decades. The move sent shockwaves through markets, as currencies with heavy trade exposure to China hit lows against the U.S. dollar and equities on both sides of the Atlantic tanked. Commodities were hit hardest, as oil and industrial metals faced severe selling. "However, this move would put pressure on other central banks around the world to push down their own currencies to help their own exporters and to prevent destabilizing capital flows and it could further hurt commodities markets because it signals sluggish demand from China. "
diga Posted August 11, 2015 Posted August 11, 2015 ^ suggest you to read the currency wars & how george soros forced bank of england to devalue the pound..very interesting
randomGuy Posted August 12, 2015 Posted August 12, 2015 July CPI for India -3.8% . matter of time before another rate cut
mishra Posted August 12, 2015 Posted August 12, 2015 ^ suggest you to read the currency wars & how george soros forced bank of england to devalue the pound..very interesting It was heist. A very well planned heist by three central banks. Its still on.
diga Posted August 13, 2015 Posted August 13, 2015 July CPI for India -3.8% . matter of time before another rate cut negative?? IIP too grew at 3.8 per cent in June on demand for consumer goods ...Isnt Q1 growth slower than other quarters? This time I feel the govt may take a call for rate cut rather than Rajan on the China's currency devaluation move
randomGuy Posted August 13, 2015 Posted August 13, 2015 negative?? IIP too grew at 3.8 per cent in June on demand for consumer goods ...Isnt Q1 growth slower than other quarters? This time I feel the govt may take a call for rate cut rather than Rajan on the China's currency devaluation move Correct. Yuan devaluation n indian CPI both are strong reasons for rate cut. CPI is gone down to 3.8% (read '-' as ':' in above post :D) mainly because of vegetable price which are down by 8% compared to last July.
randomGuy Posted August 14, 2015 Posted August 14, 2015 July WPI = -4.05% (minus four percent!) Its the least ever and has been negative for last 7 months.
amiret Posted August 18, 2015 Author Posted August 18, 2015 Crazy roller coaster . Shangai Comp down over 6% on Tuesday again ! Almost half-Trillion dollars ( $483 Billion) being used by the Chinese Govt and Central bank and yet they are unable to reduce the volatility .They even banned "major shareholders from selling any of their shares." ! China's Shanghai share index plunged more than 6 percent Tuesday in its biggest drop in three weeks. The Shanghai Composite Index fell 6.2 percent to 3,748.16. It was its largest fall since an 8.5 percent dive on July 27, which was its biggest slide in eight years. These kind of crashes are perhaps witnessed once a decade in India. This market is not a stock market that’s driven by fundamentals,” Donald Straszheim, the head of China research at New York-based Evercore ISI, said in a July 30 interview on Bloomberg Television. “It’s a government operation. Beijing is calling the tune, day by day.” China Securities Finance Corp , a state agency has been tasked with supporting share prices : While China Securities Finance will remain in the stock market for years to come, it won’t normally step in unless there’s unusual volatility and systemic risks, the China Securities Regulatory Commission said Friday. The regulator said it will focus on letting the market self-adjust as volatility falls. The agency was a linchpin of the government’s market rescue effort, with $483 billion of firepower and the potential to add $322 billion more. Officials have also banned large shareholders from selling stakes, ordered state-run institutions to buy stocks and temporarily allowed more than half of listed companies to halt trading.
jusarrived Posted August 18, 2015 Posted August 18, 2015 This is crazy , India had this kind of fluctuations in the 90s
Malcolm Merlyn Posted August 18, 2015 Posted August 18, 2015 Chinese stock market is being propped up by their govt.Lets see how long they can do this.
Precambrian Posted August 18, 2015 Posted August 18, 2015 Amiret, what's the cumulative fall in chinese stock market since the beginning of this year?
amiret Posted August 18, 2015 Author Posted August 18, 2015 ^ The Shangai Composite (SSE Comp) is still up 12 % Year-To-Date . But is down almost 30% from the highs it reached in mid-June . The Index is still up over 60 % since last August . What has been startling is the pace of both the Rise and the fall . The SSE Comp more than doubled from last Aug within a space of 7-8 months . Now we have witnessed a predictably swift correction . The pace of the fall has been somewhat arrested by the Chinese Govt's unprecedented efforts to rescue their Stock market .
amiret Posted August 19, 2015 Author Posted August 19, 2015 Typical story of Capitalists begging for a Socialist bailout and for Govt Protection from the Free markets :haha: Such behavior can also be seen in India from time to time. Chinese stock markets took a wild ride on Wednesday, tumbling and soaring in a session that made little sense other than to highlight that investors have almost no faith in a month-long government effort to stabilise them. The Shanghai and Shenzhen markets fell 3 percent in morning trade, taking their losses to more than 8 percent since investors stampeded without warning on Tuesday. But state-backed buyers later rushed in, enabling stocks to finish the day more than 1 percent higher. UNPRECEDENTED rescue effort of the Govt to bailout out investors unable to face the consequences of their own stupidity : Investors say China's stock markets - which were never for the faint of heart - have become dysfunctional since the government's massive and unprecedented rescue effort. Late in the afternoon on Wednesday, a slew of companies announced state funds had bought stakes in them, which investors took as a sign that the government was signalling its continued support for the market. As of early evening, around 20 firms had made such announcements. http://finance.yahoo.com/news/china-stocks-extend-slide-amid-052853610.html
Malcolm Merlyn Posted August 19, 2015 Posted August 19, 2015 How long can China keep propping up these companies?
amiret Posted August 19, 2015 Author Posted August 19, 2015 How long can China keep propping up these companies? The majority of the companies may not be in trouble at all . They may be earning good revenues and profits in a slowing Economy . Problem is the Stock market where the valuations of many these companies have been inflated to absurd levels within a very short period due to irrational exuberance , and they are now correcting to reasonable levels . However , instead of allowing asset prices to find their own levels , Govt is intervening to prevent a larger correction . When the stock market was rising , Govt owned news agencies were functioning as cheerleaders of the market and encouraging people to invest when they should have been cautioning against irrational valuations.
Precambrian Posted August 19, 2015 Posted August 19, 2015 ^ The Shangai Composite (SSE Comp) is still up 12 % Year-To-Date . But is down almost 30% from the highs it reached in mid-June . The Index is still up over 60 % since last August . What has been startling is the pace of both the Rise and the fall . The SSE Comp more than doubled from last Aug within a space of 7-8 months . Now we have witnessed a predictably swift correction . The pace of the fall has been somewhat arrested by the Chinese Govt's unprecedented efforts to rescue their Stock market . Thank you.
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