Posted on 08/23/2015 7:31:31 PM PDT by TigerLikesRooster
Chinese shares drop in dramatic free-fall
24 August 2015
Chinese shares continued their sharp fall on Monday as concerns over the country's slowing growth and volatile markets sparked panic among traders.
The mainland benchmark index, the Shanghai Composite, fell sharply by 8.4% to 3,211.75 points, extending last week's sharp losses.
The sell-off continued despite China's latest attempts to reassure investors.
Over the weekend, Beijing said it planned to let its main state pension fund invest in the stock market.
(Excerpt) Read more at bbc.com ...
What do we have to lose? Cheap Chinese crap?
Just came from Zero hedge. Pretty much all bad news this evening. Commodities, Shipping, Stock Markets, The Fed. Better it happens on Zero’s watch.
Yes - in at 10 and out by noon - but may stay in a little longer tomorrow
In the last week, the Shanghai Composite lost 12%, and since the middle of June they are down 30%, so with tomorrow’s loss they are looking at a drop of 38% in two months.
Another important point is their allowing (directing) their national pension fund to invest 30% of its reserves in the market. It will be interesting to see what happens.
This 2 Day Stock Market Crash Was Larger Than Any 1 Day Stock Market Crash In U.S. History
http://theeconomiccollapseblog.com/archives/this-2-day-stock-market-crash-was-larger-than-any-1-day-stock-market-crash-in-u-s-history
We Have Already Witnessed The First 1300 Points Of The Stock Market Crash Of 2015
http://theeconomiccollapseblog.com/archives/we-have-already-witnessed-the-first-1300-points-of-the-stock-market-crash-of-2015
Nah, didn't think so.
They ought to outlaw the practice..........
Oh wait, wrong communist regime.
roflMAO
Agreed. My step BIL does biz in China and tells me horror stories. He’s at corporate level and every communication is monitored. People he knows have ‘disappeared’.
The Chinese hold a lot of USA paper, when do they start cashing it in?
Great moniker.
When we let them.
Bet your ass and the house cat Buffet will be cleaning up.
That's a 37 percent loss in 73 calendar days.
I always assumed it would be Japan, with their heavy debt-spending, that would start the global crunch. Looks like there's another contender.
Do you have some shorts in place, FRiend? For what it's worth, I've held shares in an inverse-NASDAQ mutual fund for about a year now, as a hedge against stocks I'd rather not sell.
Does a trading curb mean I'm not allowed to sell my stock if the price has changed too rapidly? Not sure I like the idea of not being allowed to sell.
The Chinese recently devalued their Yuan (aka Renminbi or RMB) for several reasons to gain monetary flexibility, one of which was to have other means to stabilize their currency in a bid to vie for reserve currency status.
The devaluation leads to inflation of goods and services inside China and outside China for global Chinese companies. Hence, the selloff represents a move to liquidity and cash to handle the inflation.
The devaluation of the Yuan causes the US Dollar to appear stronger, hence the price in Yuan of exports increases while in US Dollars it remains the same because the Dollar exchanges for more Yuan.
The US stock markets are affected because there are large funds of Chinese investors selling US stocks for US dollars (also in London for £) that are now stronger against the devalued Yuan.
Short US financials until the Chinese market finds its new level which may be as long as a week. Then cover. Good luck with the timing which is key and no, I have no crystal ball for that.
The US markets have been propped up by the Fed Reserve anyways via the inflated bond markets who move funds between bonds and stocks and back to bonds on a regular basis. This fact has disturbed me and others for many years. At some point QE has to end (why?) because there’s no good fast way to spread the fiat funds into an economy where 93 million people are unemployed or underemployed without blowing a lid on inflation. Therefore, Asian goods must come in at lower prices else their whole game collapses. The US consumer is the endpoint of most of Asian manufacturing. And the fall in oil prices means other global regions are now short of funds to allow China to become less dependent on the US consumer.
Oh my, Prince Alwaleed started this whole cycle from his fear that US frackers would emerge so large as to bury his Kingdom. Well, golly gee gosh, looks like he’s lost control of the game as the world races to the bottom.
Donald Trump could not come at a better time in American History.
Roller coaster on the way down with everyone screaming.
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