Bad day on Chinese Stockmarket

a reply to: khnum

Picked the wrong day to stop smoking!

a reply to: crazyewok

This is no surprise. Many have encouraged all to watch China. I believe there will be many more countries to have similar issues, like Hong Kong, as it's time to pay the piper.

Look to the BIS. Watch them closely, well as closely as possible. They are a closeted group by design.

~beannacht

Dow futures were down 383 but the market is only down 134,must of 'lost' some Chinese sell orders again LOL

originally posted by: Ultralight
I believe there will be many more countries to have similar issues, like Hong Kong, as it's time to pay the piper.

Hong Kong's debt to GDP ratio is very low and they still maintain a solid budget surplus. They are also typically ranked #1 or #2 for economic freedom. We should all have Hong Kong's 'issues'.

a reply to: soulpowertothendegree

Dont panic Wall Street is in fine hands they are a symphony orchestra of stockmarket manipulation whilst the Chinese are more of a polka

a reply to: Ultralight

Hong Kong is pretty stable.

Its economy based off Britain but leaner.

Over all its pretty wealthy with low poverty, high employment and low goverment expense.

The problem is if a broke China interfers with hong kong,

originally posted by: crazyewok
The problem is if a broke China interfers with hong kong,

Exactly. Mainland China wants Shanghai to supplant Hong Kong and New York by 2050 as the financial centers of the world but Hong Kong has a more steady, realistic approach to growth and continues to see solid gains in both per capita GDP/worth and continued investment in its development.

When did the margin buying really take off? I'm curious to trace back the index back to this point. There was a huge ramp up in the first half of this year, did it start late last year or has it been going on for a long time?

a reply to: pl3bscheese

The Chinese government has been encouraging it for some time but recent increases in margin buying were larger than those before:

The ChiNext Index, comprised of small- and mid-cap stocks, was up 185% during the same time frame, and 164%
in 2015 alone as of June 12. Retail investors, who comprise 80% of the market, bid up shares to an unsustainable level and they did it, largely, on margin. Source

The Chinese government is attempting to remedy this with numerous policy and fiscal requirements for investors and institutions.

a reply to: crazyewok

So what your proposing is "gov't" stepping and changing things as the economy is growing..can't have that, can we.

A sure fire way to mess up a growing economy-or a stagnant one- is to introduce more arbitraries, change TPTB from corporate to the politically expedient. Yep, that shut down excessive growth in a heart beat...

This could be a potential bellwether that indicates that the specter of financial calamity looms formidable. In a globalized world this dramatic downturn could spell trouble for the United States. After lurking around these threads for the past several months I have heard so-called secret bearers proclaim that there will be a U.S. financial collapse in 2016 or as early as fall 2015. My skepticism will not permit me to subscribe to the doomsayers but there is the off-chance that the systemic damage to the global markets caused by flagging confidence in Asian markets might redound in a sell-off correction. Who knows though?

originally posted by: nwtrucker
a reply to: crazyewok

So what your proposing is "gov't" stepping and changing things as the economy is growing..can't have that, can we.

No I did not say that.

Your putting words in my mouth and twisting things. I dont take kindly to that.

Growth is good but it has to be done sustainably.

concentrating wealth is small areas while leaving 90% of the country under developed and destitute is going to backfire.

To avoid that would you no agree the government should be building the transport links and trade infrastructure to reach the whole country?

and margin trading without assets to back loses is always a recipe for disaster.
Surely you must see that trading in money you DONT have is a ridiculous idea!

a reply to: crazyewok

If your comments leave enough room for that interpretation and dislike the response the clarify your point in the first post....not the second....

As far as the second post goes, limited agreement. Where's the money supposed come from to 'develop' these heretofor undeveloped/destitute regions?

The others became developed due to products, services, etc. that were in demand, largely driven by market forces.

The stock market doesn't necessarily reflect the economy. The rate of increases in the indexes far, FAR exceeds the rate of growth in the economy. It isn't all 'profit, either'. The purchasing power of the dollar is dropping fast enough to demand more of them to receive the same shares, from what I can see.

Actually, a very large number of new developments, plants and industries have emerged in States and regions that haven't previously had them. Largely due to cheaper land, more competitive state inducements and the need by foreign firms to develop plants in the U.S..

Little to do with sustainable growth. More to do with market forces, again.

Infrastructure is a different issue. If all the monies received via taxes, both federally and at a state level, were spent in the area they were 'earned' I.E. fuel taxes, gas taxes, highway/road use taxes and tolls, there would be NO infrastructure issues. More than enough to cover maintaining and expanding the infrastructure.

That isn't a market issue, merely a political one.

a reply to: nwtrucker

We are talking CHINA on this thread not the USA.

More charts for perspective:





So could be a long way down yet. We'll see

a reply to: crazyewok

You were the one who compared the crash of 29 with China. Blamed both one a too fast expansion of economies.

Which I disagree with.

a reply to: nwtrucker

1929 USA is different to today. Though your economy is still fragile.

Fact was something went horrible wrong in 1929, you cocked up. Wall street was borrowing and trading money IT DID NOT HAVE. If you economic expansion rests of trading in assets you do not have your going to have a bad time.

Though we just have to look back to 2008 really and see you haven't learned. You just can print the money now to cover the losses.

a reply to: crazyewok

Gee, thanks for telling me that...