Look out below!
Posted on 01/07/2016 2:29:39 PM PST by sparklite2
China will suspend its new stock market circuit-breaker mechanism - designed to stop free-falling prices - from Friday, the Shanghai and Shenzhen stock exchanges have said.
The mechanism, which had been in place since the start of this year, suspends trading on China's main stock markets if stocks fall 7%.
This move may well rattle the confidence of investors even further. Watch out for more volatility on Friday.
(Excerpt) Read more at bbc.com ...
Look out below!
some of us are looking up
Oh this’ll be fun. Shock and awe tomorrow.
Circuit breakers only mean something in a market which is actually free. Instead, I imagine that the central bank there will be the largest stock holder in China by 11am local time.
Can anyone tell me what is the political gain letting this happen now? Stock market crashing?
Considering that most of the huge “private companies” are actually fronts for the State anyway, they’re just buying their own stocks.
To weaken the yuan in order to make exports more affordable for overseas markets?
China does not have a stock market. It does have a couple of casino’s with corrupt oversight.
Come on in, the water is fine!
A sitting president is responsible, leaders are responsible, period. However, the Yuan and USD are in a competitive replacement war. Together with the Petro dollars, it would seem that the Chicom’s have had enough of the prosperity for everyday Chinese thus they are going to crash their markets and kill investors just as the democrats celebrated in 2000 here in the US. When people will not invest, they will believe their overlords/masters on the evils of capitalism. Obama and the FED have been manipulating the markets and metals, but this may make metals worth more quickly on a world-wide scale; something the west and Obama/Fed have little investment holdings. The Chinese are well positioned for a traditional bounce in metals, gold, etc. should their market and world markets crash - gold might triple.
I don’t think they have any idea on what they are doing... and I am not sure i believe they will actually do it either...
The following Chinese stock brokers are distressed:
Ho Re Shi
Sum Ting Wong
We Too Lo
This young day trader kid has something to say about it:
https://m.youtube.com/watch?v=qqF83-FmVpM
And if you short sell, you will disappear for counseling. Comrade.
The Chinese have been fudging their numbers for years. Their chickens are coming home to roost. And they are not going down alone.
Consider this: the Chinese are about one generation removed from everyone being dirt poor. They can survive a huge crash.
America and the west are several generations from being dirt poor. And we (as a country) rely an awful lot on the government. A true crash would ruin us as a country.
They can recover because they have industry. We shipped it to them.
Bingo.
They've decided to go back to their old system:
I suspect that shutting down multiple times compounds problems. If it looks like the market may shut down, people wanting out will be even more ancy to get out. Better to let it open tomorrow and find a bottom than to have it drop 7% in five minutes and end the day on that note.
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