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China Intensifies Steps to End $3.2 Trillion Stock Rout

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posted on Jul, 5 2015 @ 01:27 PM
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China Intensifies Steps to End $3.2 Trillion Stock Rout


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.


Click link for remainder of article..

Looks like china is having some economic issues. I am curious how this will affect the new world investment bank they established as well as the impact on BRICS.

* - China's Unsettling Stock Market Collapse
* - China rolls out emergency measures to prevent stock market crash
* - The World Bank deleted a section of a report that slammed the Chinese government

Reference the last article on the world bank. One has to ask how China will behave when it comes to the new international bank they established.




posted on Jul, 5 2015 @ 01:30 PM
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It'll be interesting how the US market reacts.



posted on Jul, 5 2015 @ 01:31 PM
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a reply to: Xcathdra

I kinda called this in another thread last night.......China will pump money into the system. The only way they really can keep this going is if they start huge building projects again. They need to keep the flow going.
edit on 5-7-2015 by SubTruth because: (no reason given)



posted on Jul, 5 2015 @ 01:33 PM
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originally posted by: beezzer
It'll be interesting how the US market reacts.





US markets are manipulated to the point events like this do not trigger massive ups and downs anymore. They buy or sell as needed. It is 100% corrupt and does not mirror what the real economy is anymore.


That is one bad looking bunny.........
edit on 5-7-2015 by SubTruth because: (no reason given)



posted on Jul, 5 2015 @ 01:36 PM
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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.



posted on Jul, 5 2015 @ 01:39 PM
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a reply to: Xcathdra


add the fact the China Central Bank also cut the loan/interest rate so as to help spur on (speculation) investment


the bottom line is: the value of the stock market may have contracted by 30% in a short time
BUT any 'losses' are only realized IF the investor 'SELLS' at that Loss

IF all the small people, investors...just held on to their stock positions and patiently wait for the prices to return they will not be the losers of Trillions in Value of stocks...


I have a notion that individual Chinese investors~~ who also stash Gold Coins-bars...might just not react aggressively like Americans or Europeans in their stock markets... hopefully they will take a cautious approach and watch as the stock prices rally from their (temporary) loss



ADD: I also have a notion that the China Stock Market 30% crash was engineered by bad people (who were not Chinese... but part of the western financial juggernaught in control of world markets

edit on th31143612180505432015 by St Udio because: (no reason given)



posted on Jul, 5 2015 @ 01:43 PM
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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.





Geez....You made me spit out my soda with that reply...........I do believe like I posted above huge ups and downs are a thing of the past with the plunge protection team they have and the tools they use.



I think we will see another round of easing sooner rather than later. I thought we would see it early fall but now I think it could happen much faster. Also as far as the US goes.......You do not need to run faster than the bear. And many others are falling down and being eaten at this point.
edit on 5-7-2015 by SubTruth because: (no reason given)

edit on 5-7-2015 by SubTruth because: (no reason given)

edit on 5-7-2015 by SubTruth because: (no reason given)



posted on Jul, 5 2015 @ 01:51 PM
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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'.



posted on Jul, 5 2015 @ 01:51 PM
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originally posted by: St Udio

ADD: I also have a notion that the China Stock Market 30% crash was engineered by bad people (who were not Chinese... but part of the western financial juggernaught in control of world markets


Got a source for this claim?



posted on Jul, 5 2015 @ 02:02 PM
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a reply to: St Udio

You've never seen Chinese gamble on a cock fight have you these markets have had swings up to 12 per cent in a day now this week the Peoples Bank might save the day but its going to be like catching a falling knife a 30 percent drop unravels a hell of a lot of margin trades.



posted on Jul, 5 2015 @ 02:12 PM
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a reply to: khnum


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.



posted on Jul, 5 2015 @ 02:23 PM
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a reply to: Xcathdra

San Diego,Miami,Sydney lots of property markets with high Chinese ownership will these properties be sold to cover losses that is just one possible side effect,there are many more such as Australian and Canadian currency slides, you are correct Greece is a side show compared to a Chinese bubble burst



posted on Jul, 5 2015 @ 02:33 PM
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a reply to: khnum

One of the sources in the op states that Chinese bank accounts total 20 trillion and they have suggested it could be used as a buffer. I am not sure how the Chinese people whose accounts would be used would react to it.



posted on Jul, 5 2015 @ 03:34 PM
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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.



posted on Jul, 5 2015 @ 03:39 PM
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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.





Really..........You do realize they need to grow at 8-10% just to break even right. China and it's economy is a dog and pony show and will fail. They can kick the can down the road a little longer but the piper will be paid.


As far as the US goes......Yep it will eventually crash for many of the same reason including progressive ideals and fiat currencies being pushed by central banks. But you do not need to run faster than the bear. Many other countries including China will crash first.


And please do not bring up the debt to China this is pie in the sky........If I loan you 10 dollars and you do not pay me back it is on you.........If I loan you 10,000 and you do not pay it back it is on me.



posted on Jul, 5 2015 @ 03:42 PM
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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?
edit on 5-7-2015 by pl3bscheese because: (no reason given)



posted on Jul, 5 2015 @ 04:28 PM
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originally posted by: rickymouse Deception only works for so long.


The same holds for derailing threads.



posted on Jul, 5 2015 @ 07:48 PM
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a reply to: Xcathdra

Don't understand it a bit - but fascinating. Capitalism just doesn't work any more.



posted on Jul, 5 2015 @ 07:51 PM
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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'.




LOL - the Chinese - don't have a 'mature' investment mindset - hilarious. The Chinese, as a civilization have been around - gosh thousands of years -- I think they invented 'inventment'. LOL



posted on Jul, 5 2015 @ 10:42 PM
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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?





You realize we are talking about the Chinese market.....Correct. The Chinese need to grow at 8-10% just to keep the system going.



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