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China suspended initial public offerings, while brokerages pledged to buy shares and state media urged investors not to panic as officials intensified efforts to stop the steepest plunge in equities since 1992.
Twenty-eight companies halted their IPOs, according to filings to the nation’s two exchanges Saturday. A group of 21 brokerages led by Citic Securities Co. will invest at least 120 billion yuan ($19.3 billion) in a stock-market fund, the Securities Association of China said the same day. Executives from 25 mutual funds vowed to buy shares and hold them for at least a year, according to an industry group association.
“Declines of such a magnitude are enough to trigger a financial crisis and the issue is now elevated to state level,” said Li Jingyuan, general manager of the securities investment department at Shanghai Zhaoyi Asset Management. “It’s about restoring confidence now.”
The weekend announcements come as the government battles to restore faith among the nation’s 90 million individual investors after a slew of measures by regulators, including a pledge to investigate market manipulation, failed to stem declines. The Shanghai Composite Index has tumbled 29 percent in the previous three weeks, helping to erase $3.2 trillion of value, on concern leveraged traders are liquidating bets after equity valuations exceeded levels during the country’s stock-market bubble of 2007.
originally posted by: beezzer
It'll be interesting how the US market reacts.
originally posted by: beezzer
a reply to: SubTruth
Just look at what Greece's decisions did to the market last week.
It's all so interconnected and "inbred" it makes a "cousin marriage" look normal.
Since June 12, the Shanghai stock exchange has lost 24 percent of its value, while the damage in the southern city of Shenzhen has been even greater at 30 percent. The tumble has already wiped out more than $2.4 trillion in wealth—a figure roughly 10 times the size of Greece’s economy.
originally posted by: rickymouse
When this blows over, China will be economically stronger and be more secure. This will allow it to not be effected by the big crash coming to the USA and possibly parts of Europe in the upcoming year. Deception only works for so long.
originally posted by: rickymouse Deception only works for so long.
originally posted by: notmyrealname
a reply to: St Udio
The Chinese "investors" do not IMO have a mature investment mindset yet (after all they haven't been at it very long). As such many "investors" treat the marketplace like a casino. This would generally apply to large swaths of the public "investors" category. In short, they'll sell and cry about it until the next up tic and attempt to earn their money 'back'.
originally posted by: pl3bscheese
a reply to: SubTruth
Plunge protection team has been in effect since 1988, and we still had the massive correction of 2008/9. I think we can still have large swings, but a collapse can't happen until a superior military is formed.
Wait, 8-10% growth to break even from what? The amount of resource investment/debt taken on per year?