“So what’s causing this exactly...central banks playing around maybe?”
Jingoism, at least in part many of the Chinese are convinced their market will never crash because this is, to them, the Chinese century. They will buy stocks that are on the way up because they don’t think they’ll ever go down.
There has never been a major crash in the Chinese market so the don’t believe there will be one.
Interesting read..and thank you. We too often forget that there are cultural differences in how a people view what’s going on in another country.... Unfortunately oftentimes what people “think” turns into a false sense of security or belief of which they operate from the actual realities.
Perfect recipe for disaster I’d say.
What is your second word is?
“Communist Stock Market” is an oxymoron.
‘Jingoism, at least in part many of the Chinese are convinced their market will never crash because this is, to them, the Chinese century. They will buy stocks that are on the way up because they don’t think they’ll ever go down.’
Interesting. Kind of like overly-optimistic bets on the home team. So the Chinese citizens got sucked into a bubble. I’m sure their own government incentivized such investments too.
I agree, caww. Also China still has totalitarian control over its nation. Propaganda to ‘talk up’ investing in China, tax incentives, and censorship to discourage bad news.
Was there any ‘employer matching’ to encourage Chinese to invest?
Don't look up. A black swan as just relieved itself. But you're right. They'll continue to rig the casino until they can't.