Bad day on Chinese Stockmarket

Shanghai Composite 4051.16-3720.44 down 345.35 or 8.48 per cent
Shenzen composite 2340.93-2159.29 down 162.88 or 7.00 per cent
SSI Chinese Nasdaq 4051.16-3720.44 down 345.35 or 8.48 per cent

Methinks Wall Street will have a (cough) malfunction tonight as the Chinese margin calls get binned.

holy bajeezus.

I was watching this most of the day and it fluctuated between +.8% and -1.X%
I got busy and stooped this past hour or so..

within an hour or plummets to 8%?

what happened..

a reply to: Agit8dChop

Last stick save cost them $800 billion,looks like today they couldn't open the spigot in time.

a reply to: khnum

it was at this level just a couple of weeks ago and also back in march....china fluctuates wildly

a reply to: jimmyx

I think this is a little more than a fluctuation.
8.X % is quite a bit.

do dead cats really bounce?

China suffered a $4 trillion dollar crash a few weeks ago, the government brought in emergency measures (including banning 1400+ companies from trading stock) and it weathered the storm last week.

But today that apparent calm seems to have eroded, the governments measures aren't working today.

a reply to: Agit8dChop

well it could be more...they (the talking heads on CNBC) have been talking about china dropping quite a bit in the next few months....the US is the 800 pd. gorilla that I'm worried about...I don't know what you think, but if the FED is scarred s**tless about a 25 basis point rise in rates, our own economy is pretty damn fragile itself...just think, it would take 8 of those just to get back to a "half-way normal" 2 percent FED rate

originally posted by: jimmyx
a reply to: khnum

it was at this level just a couple of weeks ago and also back in march....china fluctuates wildly

This is the largest change in about 8 years.

originally posted by: khnum
Shanghai Composite 4051.16-3720.44 down 345.35 or 8.48 per cent
Shenzen composite 2340.93-2159.29 down 162.88 or 7.00 per cent
SSI Chinese Nasdaq 4051.16-3720.44 down 345.35 or 8.48 per cent

Methinks Wall Street will have a (cough) malfunction tonight as the Chinese margin calls get binned.

that is not good at all

originally posted by: khnum
Shanghai Composite 4051.16-3720.44 down 345.35 or 8.48 per cent
Shenzen composite 2340.93-2159.29 down 162.88 or 7.00 per cent
SSI Chinese Nasdaq 4051.16-3720.44 down 345.35 or 8.48 per cent

Methinks Wall Street will have a (cough) malfunction tonight as the Chinese margin calls get binned.

For got to add that perhaps it a financial version of a plunge on a horse on the part of the powers that be.

China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

It's also important to remember that about 141 companies have had their shares frozen, so they can't drop. So this drop is artificially made to appear less severe than it really is.

I wonder if this is irreversible?

It seems that the list of corporations-1400(?)141? are blocked from trading. Also assuming that a high portion of them are foreign based, why would anyone outside China remain in a market that forces them to eat continued losses and let the locals off with lesser losses?

I wouldn't. I'd bail as soon as I could.

If I'm outside those 1400/141, I'd be selling, perhaps slowly, but selling none the less.

Any further actions by the gov't and it's looks like they'll have no choice if this continues and I wonder how they re-establish credibility???

originally posted by: crazyewok
China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

Good thing they have all those empty cities to move people into.

originally posted by: OccamsRazor04

originally posted by: crazyewok
China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

Good thing they have all those empty cities to move people into.

Good thing they have all those gold bars so they can pay their margin call.

a reply to: crazyewok

Really? What's your solution to the 'mistake' of 'growing too fast'?

At least China has the power to arbitrarily change the rules.

originally posted by: TheChrome

originally posted by: OccamsRazor04

originally posted by: crazyewok
China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

Good thing they have all those empty cities to move people into.

Good thing they have all those gold bars so they can pay their margin call.

$3 trillion and counting so far. That's a lot of gold, how much gold do you think they actually have?

Hint, it's about $80 billion maybe.

originally posted by: crazyewok
China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

It is more related to buying or margin which was the same issue as 1929.

China's investor class numbers over 300 million so when a number of people larger than the United State's population purchases stock on spec it leads to serious issues when there is any type of correction.

originally posted by: nwtrucker
a reply to: crazyewok

Really? What's your solution to the 'mistake' of 'growing too fast'?

At least China has the power to arbitrarily change the rules.

One way is to make sure labor rights keep up and wealth inequality is low.

A country that economy is growing so fast and influential on the world cant sustain a situation were one segment is living like kings and another on the equivalent of a few dollers a day in practically slave labor.

Eventually it catches up and the economy stalls. Especially when a big segment is based around manufacturing as there is only so much you can sell before the market becomes saturated.

The solution is a varied and diverse economy that provides opportunitys.

originally posted by: AugustusMasonicus

originally posted by: crazyewok
China is makeing the same mistakes the USA made back in 1929 and have been for awhile.
Economic growth was going faster than its socity could handle.

It is more related to buying or margin which was the same issue as 1929.

China's investor class numbers over 300 million so when a number of people larger than the United State's population purchases stock on spec it leads to serious issues when there is any type of correction.

Well uncontrolled margin buying is what turns a problem into a global catastrophe.

A economy stall and when the margins are called in it all goes to pot.

originally posted by: nwtrucker
a reply to: crazyewok

Really? What's your solution to the 'mistake' of 'growing too fast'?

At least China has the power to arbitrarily change the rules.

O and growth is to fast if its using unsustainable methods.