Posted on 09/29/2011 11:30:37 AM PDT by blam
Everyone's Asking Their Broker Today: "Why Are My China Stocks Getting Killed?"
Simone Foxman
Sep. 29, 2011, 1:30 PM
Chinese stocks are getting killed.
Why?
Goldman put out the following desk note specifically in response to the flood of questions coming from investors.
1) Concerns about Chinese PMI and possible slowdown of Chinese economy.
2) Merrill note yday discussing possible slowdown in China.
3) Market selling things that worked in the past - Gold, NFLX, etc.
4) Ongoing corp governance issues.
5) Qtr end might cause wholesale selling of anything Chinese due to uncertainty of "growth issue" in China.
6) Sector is broken and market is in attack mode. Desk has seen shorts being layed out.
Here are some of the stocks getting killed right now:
Sina (SINA): -10.34%
Sohu (SOHU): -9.89%
Baidu (BIDU): -9.89%
(Excerpt) Read more at businessinsider.com ...
Cause they’re fake, sucka.
Maybe that copper commodity price theory posted yesterday was a good one
A post on a Wall Street Journal blog starts:
Chinese stocks are getting crushed today, partly because of a report that the US government’s investigation of their accounting is gaining some muscle power.
"Does it matter if copper breaks down? In the normal course of things I would say no. The demand side is slipping on a global basis; there’s plenty of metal around, so lower prices are not much of a surprise. But there is a wild card on copper this time around. I’m wondering if the crap out in copper is going to bring indigestion to China."
"Entities in China have been using copper warehouse stocks as collateral for financing all manner of things for the past two years (L/C backed financing). The estimates for how much has been done of this are not clear. The range is from $7-10 billion."
Everyone's suddenly wary about China.
Copper has been plunging on fears about a slowdown, while the Shanghai Composite continues to plunge to new lows for the year.
This more and more people are eyeing China and the increasing possibility of a hard landing.
If you think any number coming out of China is reliable, you are deluded.
“Why Are My China Stocks Getting Killed?”
Can you spell bubble.
Well, my broker is EF Hutton, and EF Hutton says....
bttt
I've been saying that for years. It's easy to cook the books when you also audit the books.
Because global investment managers told the Fed and government to do so. Their borrowers’ freight fuel for global, socialist conquering by manipulations was getting too high for them, so they’re trying to deflate China a little for a very short time. Have fun. Enjoy the slide. Avoid buying things, until they close their office doors for good and all.
Our USA and Europe are still defaulting, BTW. Before long, the dollar won’t be worth toilet paper. They’ll see to it, that comes as a surprise to peasant investors, too.
Under the white noise, the German government just voted in favor of more free money than expected to inflate Europe. They passed it, and oil is headed up. Another surprise.
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