Posted on 06/26/2015 5:51:04 AM PDT by BenLurkin
China’s Shanghai Composite index dropped 7.4% on Friday. That would be the equivalent of a more than 1,300-point drop in the Dow Jones industrial average. The Shenzhen Composite, which is dominated by tech stocks, ended trading down 7.9%.
As always in market turns, it is unclear exactly what sparked the current sell-off. Some have pointed to the fact that regulators have recently been tightening rules on buying stocks with money borrowed from a broker, or “on margin.” Officials in China are particularly concerned about stock loans that have been coming from unregulated financial entities.
(Excerpt) Read more at fortune.com ...
They want the world on their currency, but their books are off the books to the world. I hear they are in horrible shape.
Communist Stock Market is an oxymoron
Of course they are in horrible shape. They own over $1 trillion in U.S. debt.
They also have over $2T in FX reserves which is why they hold so much US debt.
They need to keep the market up to keep the locals from rioting and the foreigners from forcing a capital flight.
Solution - make up economic data at will and shake the stock tree every so often.
You know.....that’s a good point!
It's all creative writing, er..accounting..
I wonder if the passage of TPA is causing the exuberance. The theory is patents and copyrights are supposed to be locked down in TPP and that is VERY bad for China. Of course our deficit will go boom on pharmaceuticals...
Should I say, lack of exuberance.
Ah, China and Russia sold billions and billions of US debt which, mysteriously was then bought by Brussels. Brussels bought US debt that was many times their GDP, but yeah, it’s all legit.
Check it out. Some really crazy stuff going on to keep the Ponzi scheme afloat.
That is a market operating in a world market for the benefit of the Red Chinese Military instead of the citizens.
Ruh Roh.
Exactly the point.
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