Thread: China's Shanghai is Sinking

Good grief Charlie Brown.

Opinion: China’s stock-market crash is just beginning

China

I'm sure some margin calls are going out in the US right now.

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

Originally Posted by James48843

Shanghai drop stops, reverses. Now up 1%.


Bottom?

Or dead cat bounce?

Are we voting? Dead Cat Bounce... only time will tell

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.

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.

Originally Posted by James48843

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

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.

Originally Posted by nnuut

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

Sounds pretty stupid doesn't it?

Welcome to the Hotel Shanghai!!

Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
"Relax, " said the night man,
"We are programmed to receive.
You can check-out any time you like,
But you can never leave! "

On a more serious note, price controls DO NOT WORK. This could be the action that really ends up hurting everyone and everything 6 months from now.

FS