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Chinas Stock Markets collapsing!!!

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Chinas Stock Markets collapsing!!!

Postby Banano » July 7th, 2015, 11:07 pm

http://money.cnn.com/2015/07/07/investing/china-stock-market-companies-stop-trading/


The turmoil in China's stock market is so bad that some companies are calling it quits.

Over 700 Chinese companies have halted trading to "self preserve," according to the state media. That means about a quarter of the companies listed on China's two big exchanges -- the Shanghai and Shenzhen -- are no longer trading.

China's stock markets are in trouble. The Shanghai Composite Index has fallen over 25% since mid-June. The Shenzhen, which has more tech companies and is often compared to America's Nasdaq Index, is down even more.

Related: Forget Greece. China is the real problem

The government has taken extraordinary steps to try to prevent further damage. The Chinese central bank made a surprise rate cut at the end of June. Then China's securities regulator stopped initial public offerings on the exchanges.

Over the weekend, over 20 of China's top brokerage firms publicly pledged to buy back stocks and funds in an effort to slow the downfall. The firms expect to spend at least 120 billion yuan (about $19.3 billion).

"The government is taking good care of the stock market," China's vice commerce minister said this week.

But investors clearly aren't convinced. China's stock market has been undergoing wild swings where it will open up as much as 5% and then end the day down that much or vice versa.

Both the Shanghai Composite and Shenzhen indexes fell again on Tuesday.

According to Bespoke Investment Group, China's stock markets have now lost $3.25 trillion. To put that in perspective, that's more than the size of France's entire stock market and about 60% of Japan's market.
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Re: Chinas Stock Markets collapsing!!!

Postby Taco » July 9th, 2015, 2:25 am

Overall, Chinese stocks have fallen 27 percent since the peak, and a whopping 3.2 trillion dollars of “paper wealth” has been wiped out in China in just the last three weeks.

European Stocks, Chinese Stocks And Commodities Are All Crashing – Are U.S. Stocks Next?
http://theeconomiccollapseblog.com/archives/european-stocks-chinese-stocks-and-commodities-are-all-crashing-are-u-s-stocks-next

Economic Meltdown By September
viewtopic.php?f=41&t=27075
“Every time a President leaves the White House after two terms, there is a recession within the next year"
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Re: Chinas Stock Markets collapsing!!!

Postby Taco » July 9th, 2015, 10:19 am

This just in.

[youtube]http://www.youtube.com/watch?v=hZKqN-8x2Po[/youtube]
“Every time a President leaves the White House after two terms, there is a recession within the next year"
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Re: Chinas Stock Markets collapsing!!!

Postby Moretorque » July 9th, 2015, 12:44 pm

So what is new, they do that all over especially here in America.
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Re: Chinas Stock Markets collapsing!!!

Postby Taco » July 12th, 2015, 5:08 am

China looks like it is heading for its version of the 1929 stock market crash.

The really worrying financial crisis is happening in China, not Greece
http://www.telegraph.co.uk/finance/china-business/11725236/The-really-worrying-financial-crisis-is-happening-in-China-not-Greece.html
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Re: Chinas Stock Markets collapsing!!!

Postby johnnyderp » July 12th, 2015, 9:27 am

Given that the Chinese markets were up ~120% in the previous 12 months, this correction is only natural.
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Re: Chinas Stock Markets collapsing!!!

Postby tom » July 12th, 2015, 4:20 pm

The Chinese markets do look a lot like our market in the late 19th and early 20th century. There is a lot of leverage used just like the US markets had. But worse is there is no short selling or derivatives. Basically the market is heavily leveraged in one direction. Actually it is even worse than our markets were as we did have short selling. So when markets in China sell off they only have one direction to go, down and its very fast as there is nothing to stop it. Extreme volatility rules in this type of market.

[youtube]http://www.youtube.com/watch?v=e6xz87ZUR1o[/youtube]
Last edited by tom on July 12th, 2015, 4:25 pm, edited 1 time in total.
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Re: Chinas Stock Markets collapsing!!!

Postby Moretorque » July 12th, 2015, 4:25 pm

Don't kid yourself, the whole system world wide is rigged in the direction of the creditor class.
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Re: Chinas Stock Markets collapsing!!!

Postby johnnyderp » July 18th, 2015, 12:20 am

Taco wrote:China looks like it is heading for its version of the 1929 stock market crash.

The really worrying financial crisis is happening in China, not Greece
http://www.telegraph.co.uk/finance/china-business/11725236/The-really-worrying-financial-crisis-is-happening-in-China-not-Greece.html


No, more like the 1987 Crash.

It's funny, all these analysts talking about a 30% fall in the Chinese market like it's a disaster while conveniently ignoring the fact that Chinese markets are still up around 90% over the last year, even including recent falls. This is a much-needed correction, as some sectors and smaller cap stocks were becoming overvalued. Large caps are still good value according to this Australian economist, who has a strong track record of making accurate predictions and analysis:

http://www.ampcapital.com.au/article-detail?alias=/olivers-insights/july-2015/chinas-share-market-volatility

The p/e ratios of Chinese stocks are still quite low, especially compared with the 2007 highs.
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Re: Chinas Stock Markets collapsing!!!

Postby The Un-American » July 18th, 2015, 1:48 am

johnnyderp wrote:
Taco wrote:China looks like it is heading for its version of the 1929 stock market crash.

The really worrying financial crisis is happening in China, not Greece
http://www.telegraph.co.uk/finance/china-business/11725236/The-really-worrying-financial-crisis-is-happening-in-China-not-Greece.html


No, more like the 1987 Crash.

It's funny, all these analysts talking about a 30% fall in the Chinese market like it's a disaster while conveniently ignoring the fact that Chinese markets are still up around 90% over the last year, even including recent falls. This is a much-needed correction, as some sectors and smaller cap stocks were becoming overvalued. Large caps are still good value according to this Australian economist, who has a strong track record of making accurate predictions and analysis:

http://www.ampcapital.com.au/article-detail?alias=/olivers-insights/july-2015/chinas-share-market-volatility

The p/e ratios of Chinese stocks are still quite low, especially compared with the 2007 highs.


I would compare it to the 1990 crash in Japan. It will likely be followed by a devaluation of other assets.
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Re: Chinas Stock Markets collapsing!!!

Postby Taco » July 20th, 2015, 3:30 pm

This just in.

[youtube]http://www.youtube.com/watch?v=zPdHAleapI0[/youtube]
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