Posted on 07/31/2015 6:42:41 AM PDT by TigerLikesRooster
China is asking for stock trading records from Chinese and foreign brokerages to find investors who are shorting stocks
Michelle Price, Pete Sweeney Today at 6:06 PM
HONG KONG/SHANGHAI (Reuters) – China is asking foreign and Chinese-owned brokerages in Hong Kong and Singapore to hand over stock trading records, sources with direct knowledge of the requests told Reuters, extending its pursuit of investors shorting Chinese stocks to overseas jurisdictions.
Three sources at Chinese brokerages and two at foreign financial institutions said the China Securities Regulatory Commission (CSRC) had sought to identify traders and investors who had taken net short positions, or bets that prices would fall, against Chinese-listed shares.
“The implied threat by the CSRC is that anything that is not a hedge is a no-no,” said a source in Hong Kong with knowledge of the requests. This person added that foreign brokers were likely to comply as best they could with the requests.
“When the CSRC makes an offer, you cannot refuse it.”
(Excerpt) Read more at businessinsider.com.au ...
P!
I think we are going to see some scapegoating from china’s ruling party of investors in there markets.
Here come the mass executions.
if only we could sic them on some naked shorters over here...
I hope George Soros was involved.
He will then soon have Chinese take out delivered to him....
Too late, already here. The scapegoating of the hedge funds in 2008 was a prime example. When the S really HTF we will have much much more to go with a much bigger federal government.
Somebody convinced those communists that stock markets only go up. Need more government.
“The scapegoating of the hedge funds in 2008 was a prime example. “
If there was even one hedge fund that was punished in any fashion I didn’t see it.
I am flying back on the new Dreamliner ( 787-900) from Shanghai at the moment after spending the last week in China on business. From what I saw this week in China, the goldbugs who think Chinese are going to buy gold are dreaming. It looks more like they are the ones that are SELLING it. I was just in China 8 weeks ago in Shanghai, Hong Kong and Macau, and business was slow then, especially in Macau. Since then we had the Shanghai Crash, and this time the shopping malls were a ghost town... restaurants empty, even Starbucks empty. Carrefour, the Costco-like store near the hotel had few shoppers, this is on a Saturday, normally packed to the gills.
Something very ugly is going on in China, and even in Shenzhen it was quiet. I think what happened is we remember hearing about all those huge numbers of new retail stock accounts being opened over this last year or so,... I suspect the market crash has put a damper on consumers.
It was very eerie overall. We had dinner last night at the hotel restaurant... on a Friday night, and we were the ONLY diners in a huge restaurant.
So if anyone is waiting for the Chinese to buy gold, you better think again, they aren’t even buying McD burgers.
.......excerpted from a private financial blog
Fixed. Talk to you ChiCom handlers? Free Traitor convention? F China.
the chicoms are investigating the chicaps
the chicoms finally got in at the top of the market
Here’s the straight poop from John Maudlin’s Saturday letter.....
“In major cities in modern China there is a multi-story bookstore on every fifth corner. The first floor is almost always stacked with the following mix:
Half the floor is filled with the equivalent of Mobil guides, showing the latest version of the road maps for various parts of the country including the location of rest stops and restaurants. These change monthly as, in spite of the “slowdown” there, roads are still being constructed at a rapid pace – rapid enough to call for new maps quite often. The other half of the store has two adjacent and, at times, commingled sections. The most significant section, in Chinese and other languages, has books on numbers – their importance in quotidian living and how one would go about picking lucky numbers for various lotteries and other gambling activities. That section, I am told, gets a lot of traffic when there is a group planning a trip to Macau.
The other quarter consists of books on “investing” – many in English. Based on the titles I saw, some of these would appear interchangeable with those in the numbers section. Gambling seems to be in the DNA, and the Chinese approach to the stock market would certainly seem to fall into that category. Much as the Chinese in Macau increase their bets as a hot streak progresses, the same appears to apply to the stock market. Of course, there is a segment of “investors” in the US market who might also fall into that category. But at this stage in the development of capital markets in China, the percentage would seem to be much higher there. Classic growing pains in a less-than-mature capital market, but as with everything in China, it does go to extremes. The Chinese government seems to want equities to rise. They may not yet have gotten it quite right on how to do that; but with lots of volatility, at some point they may succeed. Could be pa inful between now and then. [It’s] a little tough already when they haven’t opened almost 20% of the [stocks] for several days.
The second story has to do with the changing mix of the Chinese economy. I did a webinar yesterday with Henry McVey and David McNellis, who run the Global Macro Asset Allocation process for KKR. They had a more sanguine view of China’s growth than the consensus, for sure. When I questioned Henry on this view, he said that people were overlooking the amazing growth of the Chinese services sector. He agrees with the major, major slowdown in fixed asset investment; but the services sector, which in many ways relates to internal elements of the China story and the consumer, is quite robust. They have a very specific window on this as investors in several service sectors in the country. It was not a story that I had previously heard spelled out so specifically. It’s not that there won’t be some hiccups or worse, but there is a transformation occurring underneath all this turmoil. It may mean slower growth in the long run, but with China following the path of the now-developed economies from agrarian to industrial to services. I am paying attention.
Where did you hear business people are in there to be philanthropic or patriotic? It is not up to the business person to foster balance of trade. It is up to the congress and president to pass laws which will promote US workers to succeed in making a good living. Why do we tax our businesses more than other industrial countries? Why do we impose more regulations than others?
And...our professional politicians are too stupid to make good foreign trade deals. Trump is pointing us the direction we need to go. But are people too stupid to follow a seasoned businessman, instead of professional politicians who have no experience in running a business.
God forbid they act like Americans? Go Trump. China can go screw itself.
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