Panic sets in as $3.7 trillion wiped of China share market

www.abc.net.au...
The main index, the Shanghai Composite, has plunged by 30 per cent since its peak in the middle of June, the biggest three-week fall in more than 20 years.
The value of Chinese stocks has plunged by at least $US2.8 trillion ($3.7 trillion).
A new crackdown on market manipulation and mis-selling of investment products by the securities regulator has failed to stop the falls.

30% does seem way past correction. Once Panic sets in, it creates more Panic, I expect Stocks to fall down further . If you notice few months back there were news stating Chinese were mortgaging their houses to buy stocks. Am wondering now how many people are going to end up homeless...

This is stunning.

I had hoped that the boon of lowered oil prices would have staved this off in China.

Apparently, it only slowed it down for a while.

The house of cards that is the world's economy is held up by the U.S., The Eurozone and China.. Three legs, all teetering, all needed to keep the thing from collapsing.

China's is the worst, from what I can see and now this......

I'm just wondering if this is retaliation for the Cyber breach not too long ago.

Oooh, star and flag for you, I saw this in the news the other day, and I've been waiting for it to pop up here, news of this globally will only add to the effect when the foreign investors who put their money in the Chinese markets start to pull out at a record rate, can't wait to hear what more members think about this.

a reply to: maddy21

Funny how the mainstream picks this up now when Zerohedge has reports from 2 weeks ago.

Buy low, sell high.

The market reached a high, now they are selling. But now every man and his dog are trying to sell before the market crashes any lower. So the market crashes further, until the panic subsides and people re-evaluate the shares and what they should actually be worth, and which stocks are performers and good to hold, solid investments, and which aren't.

3 trillion is a catastrophe.

China's coat is on a shaky peg

a reply to: maddy21

And someone made billions

Exchange denies rumor that Goldman Sachs is shorting China's stock market

www.reuters.com...

It is indeed not trivial to short Chinese stock market bubble, but shorting Aussie dollar is easy

Chinese peasant investors going to return to eat their rice, me seems too

a reply to: EA006

2.8 US$ equals 3.7 Aussie dollar

originally posted by: kitzik
a reply to: EA006

2.8 US$ equals 3.7 Aussie dollar

Ya, I edited when you were typing.

Thanks.

a reply to: maddy21

Guessing Greeck is next

the house of cards comes rumbiling down only to get further burried in sand

I say good.. sounds like.. let's start from scratch

imaginary enonomy is just not doing it for me $$$$$

originally posted by: Layaly
a reply to: maddy21

Guessing Greeck is next

the house of cards comes rumbiling down only to get further burried in sand

I say good.. sounds like.. let's start from scratch

imaginary enonomy is just not doing it for me $$$$$

China's economy is still going to grow this year just not as fast as the days of double digits. China's has a few problems, over speculations on land and everything else. And China is slowly starting to become a modern economy moving from manufacturing based to service based. China also needs job growth, manufacturing is terrible for that because as employees wages naturally increase so does the move to better efficiency and automation. Job growth in the service industry is much more robust. China just like Japan and the US and all modern economy will have to go from make stuff with cheap labor to a service based economy. Those manufacturing jobs will go to some low income third world nation. And people in China will complain that nothing is made in China anymore.

a reply to: MrSpad

yes thank you for your reply

I am familiar with their market status (china and basically whole Asia)

did economist market segment, overall economy, investment and global trade repots for last seven years..

yeah they are in a housing and property bubble .. and so on

it is what it is.. yes you watch and semi predict but that is about it

no need to PANIC (is my own capital letters.. I freak a lot easily )

a reply to: maddy21

I agree with economist Shane Oliver from the source , it's likely a correction in response to the governments clean up actions.

a reply to: MrSpad

but having said that (I don't think I read any details or souce quoted so my reply is just a comment on news- or what ever I can call it -media that's the one)

this is just a personal view point

what I am seeing is ditching paper money ASAP

but maybe it is paranoia

a reply to: MrSpad

Not from this info. China is smarter than the US regarding foreign imports.

watch.reuters.tv...

Foreign brands losing out as China goes local

Chinese consumers are increasingly dropping foreign brands in favor of homegrown consumer goods.

Since China produces almost everything, if they went to full automation and with their excess population, it would be even more devastating.

originally posted by: StoutBroux
a reply to: MrSpad

Not from this info. China is smarter than the US regarding foreign imports.

watch.reuters.tv...

Foreign brands losing out as China goes local

Chinese consumers are increasingly dropping foreign brands in favor of homegrown consumer goods.

Since China produces almost everything, if they went to full automation and with their excess population, it would be even more devastating.

That population would not have jobs and that would be the problem. It is the problem they are having now. Manufacturing is still growing but, as it becomes more efficient and automated it is also shedding jobs so it is not doing anything for the job market. And ad that to those people working in that industry demanding better pay so they can afford to live with the cost of everything else and you have the same recipe we see over and over. The death of manufacturing when a nation becomes a modern service based economy. It is just the way things work, unless China collapses of course/

originally posted by: EA006
3 trillion is a catastrophe.

China's coat is on a shaky peg

Right! China is wearing trousers with no belt! Pants are about to fall down and show funny underwear with pictures of Chairman Mao all over them!

originally posted by: DonVoigt
Oooh, star and flag for you, I saw this in the news the other day, and I've been waiting for it to pop up here, news of this globally will only add to the effect when the foreign investors who put their money in the Chinese markets start to pull out at a record rate, can't wait to hear what more members think about this.

Hmmmm, if memory serves me correctly, this is an oft repeated theme in the China stock markets. The Chinese, albeit Communists, love to speculate in their stock markets. Unfortunately, they don't have the curbs and back-stops in place to deal with the periodic bust. I seem to recall that the way they handle this is to halt trading, then the Government steps in and buys the excess sell orders to stabilize trading before they reopen the market. In other words, the "Plunge Protection Team" steps in. Abeit, they're always a bit late to the party.

a reply to: maddy21

Think of it this way. If the money supply just contracted by 3 trillion, the Govt can print / digitize 3 trillion and give it to their favorite friends with some strings attached.