Posted on 05/28/2015 7:46:31 PM PDT by tcrlaf
China's stock markets plunged on Thursday, with indexes dropping over 6 per cent in record high turnover as investors rushed to sell after more brokers tightened margin trading requirements for clients and the central bank drained money market liquidity.
The CSI300 index and the Shanghai Composite Index both slumped in late afternoon trade, ending down and 6.5 per cent, respectively, their worst day since January 19 when markets fell over 7 per cent on an earlier crackdown on margin trading. In terms of points shed, the two indexes suffered their heaviest single-day loss since 2008.
The Shanghai Stock Exchange saw A share turnover hit 1.2 trillion yuan ($193.57 billion), an all-time record high, on the selloff.
In Hong Kong, the Hang Seng Index closed 2.2 per cent down, and the China Enterprises Index lost 3.5 per cent, and some major mainland shares were trading at a discount to their Hong Kong counterparts.
China's stock market has surged over 140 per cent over the past 12 months despite a flagging economy, as retail investors, including university students, barbers and janitors piled into the world's best performing market, though economists have warned that, based on economic fundamentals, the rally was unjustified
(Excerpt) Read more at profit.ndtv.com ...
China’s been beating a war drum... that’s gotta hurt.
It’s kind of nostalgic to see, actually. Remember when our U.S. Stock Markets still had the concept of “Price Discovery”, free from Government choosing winners and losers?
Oh .... it’s coming back.
Don’t they have a plunge protection team like we do?
Matt posted a link somewhere observing that China has been hoarding gold big-time, and built the weird ghost cities on defaults credit to accommodate population growth post-crash.
The ghost cities were built as a real estate scam.
It worked like this:
Mr Chan built the place for 1 million RMB and as it was building sold it to his brother-in-law Mr Wu for 1.20 million RMB who sold it to Mr Chan’s Wife Mrs Zhu (Chinese women don’t take their husbands name)for 1.5 million who sold the place to her uncle Mr Chin for 1.75 million who sold the development to Mr Chan again for 2 million. Mr Chan then sells the development to Mr Smith from the US/Australia/UK for 2.5 million RMB after pitching to him the fraudulent idea that the property had doubled in value in just one year
The issue is that the Chinese con-men/Real Estate developers didn’t stop to think that Mr Smith would only be fooled by this ONCE. He told his friends so that when Mr Chan started phase II of the development he is left holding the bag on a lot of unfinished, over price property
I’ve been reading for a few years now that China,India, and Russia are all hoarding gold.
Why don’t we ship all our illegals over there so they can live in those ghost cities ?
Someone caused Apple stock this week to drop nearly $3 one day then go up $2.5 dollars the next day.
No news to cause this just someone making $5.5 dollars x however many shares they had.
That’s what I was thinking until yesterday, and still wouldn’t be surprised if “scam” were a nontrivial part.
Thing is, China is a survivor. Psychological survivors (not necessarily to be confused with “preppers”) are prone to doing some pretty strange things, but ultimately it serves their perpetuation. China has been “surviving” as an advanced culture for thousands of years, and learned to do some pretty strange things to ensure that come “interesting times” they’ll get thru it mostly intact. In this case, the hoarding of the single most enduring representation of wealth (gold) and the building of strange urban concrete jungles (ghost cities) ensures that when everything crashes, the two things absolutely critical to national/cultural survival will endure: money and real estate (I’m assuming they’ve got agriculture figured out too).
This in contrast to Western civilization, which is currently built on debt and low-endurance housing.
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