Posted on 07/05/2015 3:20:44 AM PDT by Olog-hai
More than two dozen companies in China are postponing initial public offerings and security companies are pledging more than $19 billion for a fund to stabilize the country’s free-falling stock market.
The 28 companies, which had obtained permission from China’s securities watchdog for IPOs planned in Shanghai and Shenzhen, said they would postpone them due to recent market fluctuations and refund money already paid, the official Xinhua News agency announced late Saturday. That followed reports that regulators were asking companies to postpone the IPOs. […]
The Chinese stock market has been in free-fall for three weeks, losing 28 percent of its value since June 12. Despite the plunge, the market is up 79 percent in the last year. The drop has wiped out several trillion dollars in market value in a matter of weeks. …
(Excerpt) Read more at hosted.ap.org ...
Someone might want to mention to the Chinesee Govt. the proper amount needed is 80 Billion a month to make China as stable as the United States!//////////////
Aren’t China’s numbers government estimates (targets)? They are certainly non-GAAP.
Huh! I wonder where they learned that.
you look at the gains before the losses it seems misleading to use the term wiped out value.
Value is the term I have issue with.
The market has already lost 3 trillion in valuation.
So let’s see.....3 trillion divided by 19 billion equals?
Only a third world economy could grow in real terms the way China claimed in the last couple of decades. Estimates? GAAP? Either the size of China's economy is tied for eighty sixth in the world or her numbers were manufactured out of thin air, make that, out of the vacuum of space.
In the United States the money changers tried to stave off the crash of Black Tuesday. They succeeded for something like twenty four to forty eight hours.
The best thing any government, including the United States', can do is provide a stable foundation then get out of the way. Sustainable growth can't be built buy government because the only things a government create are walls and fences. Build 'em high enough and they stop progress, right now.
That will never happen when men and women with boundless hubris think they are real leaders and know more than a multi trillion dollar market.
There was a documentary from last year called “How China Fooled The World”. It’s quite good - here’s a synopsis from the IMDB:
‘Robert Peston travels to China to investigate how this mighty economic giant could actually be in serious trouble. China is now the second largest economy in the world and for the last 30 years China’s economy has been growing at an astonishing rate. While Britain has been in the grip of the worst recession in a generation, China’s economic miracle has wowed the world. Peston reveals what has actually happened inside China since the economic collapse in the west in 2008. It is a story of spending and investment on a scale never seen before in human history - 30 new airports, 26,000 miles of motorways and a new skyscraper every five days have been built in China in the last five years. But, in a situation eerily reminiscent of what has happened in the west, the vast majority of it has been built on credit. This has now left the Chinese economy with huge debts and questions over whether much of the money can ever be paid back. Robert Peston reveals how China’s extraordinary spending has left the country with levels of debt that many believe can only end in an economic crash with untold consequences for us all.’
And here’s the documentary itself, about one hour long.
Very well stated, Sir!
well put, post 8...
>>the only things a government create are walls and fences.
Throughout history, various governments have excelled at creating collective bureaucracies that eventually become objects of state-established, mandatory, worship.
In the present day, government manufactures “jobs” within itself, and also within “private” industry in the form of regulatory compliance.
A simple change in regulatory requirements results in waves of activity cascading throughout regulated industries - who must respond by updating [and hiring people to update] their systems to be “compliant”.
It’s a Giant “Job” Producing, UNPRODUCTIVE, L.I.F.E.R. Cluster Frack.
Playing a little John Maynard Keynes on their fiddle.
Works every time.
it’s not like they have a system set up to print money and buy stocks with the newly minted cash
selling the stocks at a loss helps curb inflation. and since the money was created out of thin air, it doesn’t matter
1. Have dropped a HUGE money bomb on the West
2. Left themselves with the infrastructure to become the next major superpower.
Seems like a win/win for China.
I wonder how many of those new superhighways were designed to have a dual purpose, such as alternate runways for their military?
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