China Stocks Plunge Into Bear Market | Latest (8/24): "Black Monday"
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ADevilYouKhow
Rhyme Reason
Greek parliament approved lets see what the Germans say
Domingo Halliburton
Handmade in USA
Pretty much this.Matthew McConaughey's monologue summed it up in 5 minutes.
that clip isn't entirely true. You develop relationships with clients and you want to see them do well...otherwise they wouldn't come back.
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Domingo Halliburton
Handmade in USA
they threatened all the sellers so it's on a tear. I might buy in (as a short term speculative bet). China and the PBOC wont let this fail.
Domingo Halliburton
Handmade in USA
when they quote their debt in Yen it's hilarious. "Japan exceeds 1 quadrillion in debt."
I'd probably rather be in the Yen than any other Asian currency though. It really is considered a safe haven.
88m3
Fast Money & Foreign Objects
Five Charts Putting China's Stock Market Mayhem in Perspective
"Markets are allowed to operate on the way up, not on the way down"
by Malcolm Scott
July 13, 2015 — 12:18 PM EDT
An investor looks at a board showing stock market movements at a securities company in Beijing on July 10, 2015.
Photographer: Greg Baker/AFP/Getty Images)
As the dust settles (for now at least) on China's frenzied boom-and-bust stock market, it's worth looking at the role equity markets play in the world's second-biggest economy.
As a share of gross domestic product, stocks just aren't as big a deal in China as they are in countries such as the U.S. or Japan, even after a run-up over the past year.
That should, in theory, mean China can shrug off the headline grabbing ructions more easily than the U.S. could.
A comparison with bank loans and debt is also instructive, showing China remains a deeply bank-dependent economy.
And when it comes to new funds raised, the real action this year is in the bond market, not equities, as a government-orchestrated provincial debt swap boosts that market.
Those charts help illustrate why policy makers were so keen on the equities uptrend while it lasted: It all played into the goal to let markets play a more "decisive" role. Yet when the market moved decisively, in swept the government response.
"The intervention signals the limits of Beijing's commitment to allow the market to play a decisive role," said Bloomberg Chief Asia Economist Tom Orlik. "Markets are allowed to operate on the way up, not on the way down."
To be sure, the stock market has still created a lot of value when viewed over 12 months.
What happens next on the stock market is key to China's reform drive. Stabilization would salvage efforts to deleverage and erode bank funding advantages for state-owned enterprises; a further plunge may put that and other reforms such as capital-account opening at risk.
"Direct finance through the stock market and bond market is critical to lowering the cost of credit and channeling funds to high potential enterprises, bypassing the political economy problems in the banking system," Orlik said.
http://www.bloomberg.com/news/artic...ng-china-s-stock-market-mayhem-in-perspective
"Markets are allowed to operate on the way up, not on the way down"
by Malcolm Scott
July 13, 2015 — 12:18 PM EDT
An investor looks at a board showing stock market movements at a securities company in Beijing on July 10, 2015.
Photographer: Greg Baker/AFP/Getty Images)
As the dust settles (for now at least) on China's frenzied boom-and-bust stock market, it's worth looking at the role equity markets play in the world's second-biggest economy.
As a share of gross domestic product, stocks just aren't as big a deal in China as they are in countries such as the U.S. or Japan, even after a run-up over the past year.
That should, in theory, mean China can shrug off the headline grabbing ructions more easily than the U.S. could.
A comparison with bank loans and debt is also instructive, showing China remains a deeply bank-dependent economy.
And when it comes to new funds raised, the real action this year is in the bond market, not equities, as a government-orchestrated provincial debt swap boosts that market.
Those charts help illustrate why policy makers were so keen on the equities uptrend while it lasted: It all played into the goal to let markets play a more "decisive" role. Yet when the market moved decisively, in swept the government response.
"The intervention signals the limits of Beijing's commitment to allow the market to play a decisive role," said Bloomberg Chief Asia Economist Tom Orlik. "Markets are allowed to operate on the way up, not on the way down."
To be sure, the stock market has still created a lot of value when viewed over 12 months.
What happens next on the stock market is key to China's reform drive. Stabilization would salvage efforts to deleverage and erode bank funding advantages for state-owned enterprises; a further plunge may put that and other reforms such as capital-account opening at risk.
"Direct finance through the stock market and bond market is critical to lowering the cost of credit and channeling funds to high potential enterprises, bypassing the political economy problems in the banking system," Orlik said.
http://www.bloomberg.com/news/artic...ng-china-s-stock-market-mayhem-in-perspective
@Domingo Halliburton, what's new here ? I haven't followed that event much. Is the thread title still effective ?
Domingo Halliburton
Handmade in USA
I didn't look at it yesterday because I was busy but its calmed down the last few days before that. The government intervened enough. Making people hold, pumping money in, and threatening short sellers. Maybe someone else could chime in and give a better update.
Domingo Halliburton
Handmade in USA
They may have found a floor now but once they un-halt these stocks I fully expect the selling to continue.
beaniemac
Rap Guerilla
yeah it reeks of desperation.
it's been up the last two days. when you threaten sellers with jail time I guess that's the only way it can go
china's gov't always steps in to try and dictate economic forces.
i remember when fuel was like $150 a barrell, and they were subsidizing it for everyone there while everyone else in the world was getting gouged.
if their stock market is fukked up, they need to leave it alone and allow market forces to correct it naturally.
Domingo Halliburton
Handmade in USA
they wont. I think I said this in here. This is why no one will use the yuan. They wont let it freely float and let the market decide what its worth. It's probably coming years down the line.
you just use usd since they peg it to that and its more accepted around the world.
Domingo Halliburton
Handmade in USA
Aight, I'll restick it if there's new movement.