China's Shanghai is Sinking

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tsptalk

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We have been discussing the recent sharp decline in China's Shanghai in the Market Outlook thread, but I thought it needed its own thread now that it is down about 25% in the last 3 weeks. Of course it is a volatile market and the 25% haircut only took away 3 months of gains, but at some point this becomes an issue for the U.S. markets.

070215a.gif



25% can do a lot of damage...

Woman jumps to her death in Shanghai's IAPM mall after stock market dive: Shanghaiist
 
Apples and oranges but somehow reminds me of the real estate 'crash' here in circa 2008.
(Remember 'derivatives' etc.?)


"Chinese stocks had more than doubled between November and mid-June, fueled largely by retail investors using borrowed money."

Wonder when the rest of the world's stock markets will 'feel' this...and then of course
we have 'Greece'.
Ah...the fun never stops. :laugh:

China hunts for 'manipulators' as stocks tumble

https://finance.yahoo.com/news/struggle-stem-market-rout-china-010839081.html
 
The EU was worried about contagion from Greece. That issue remains unresolved. Now it sounds like the I Fund is now feeling the contagion from China. You can smell the volatility..

FS
 
Shanghai drop stops, reverses. Now up 1%.


Bottom?

Or dead cat bounce?


Note: In case anyone is keeping track, the Shanghai index is now where it was in Mid-March of this year, still almost double where it was a year ago.


It's not like a sudden drop is unusual for China's markets.

Take a look at the 1, 3 and 10 year history of the Chinese markets. They are just now learning about greed and capitalism from the inside.

http://data.cnbc.com/quotes/.SSEC
 
Well, I guess this is the new Chinese way to handle the situation:

China bans big shareholders from cutting stakes for next six months


BEIJING/SHANGHAI (Reuters) - Chinese stocks bounced on Thursday, after the securities regulator banned shareholders with large stakes in listed firms from selling, in Beijing's most drastic step yet to stem the dramatic plunges that have roiled global financial markets.

As the daily drumbeat of official announcements aimed at propping up the sinking equity market continued, state news agency Xinhua said police would investigate "malicious" short selling of stocks, and the banking regulator said it would allow lenders to roll over loans backed by stocks.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2 percent in early trading, while the Shanghai Composite Index gained 1 percent. Both had tumbled around 6-7 percent on Wednesday.
Click to expand...


More:
China bans big shareholders from cutting stakes for next six months - Yahoo Finance



So China just banned selling stocks.

That ought to do it.
 
James48843 said:
Shanghai drop stops, reverses. Now up 1%.


Bottom?

Or dead cat bounce?


Note: In case anyone is keeping track, the Shanghai index is now where it was in Mid-March of this year, still almost double where it was a year ago.


It's not like a sudden drop is unusual for China's markets.

Take a look at the 1, 3 and 10 year history of the Chinese markets. They are just now learning about greed and capitalism from the inside.

http://data.cnbc.com/quotes/.SSEC
Click to expand...

my vote
 
Free Market in China? NOPE you can't sell, but you can BUY, but can't sell after you do. This will not work.
 
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