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Can't the Chinese bring down the value of the stocks in a structured way? For example, forcing some groups to buy out others off-market, hence pushing the loss on them?
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Jul 9, 2015 03:58
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Jul 9, 2015 04:05
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meristem posted:Can't the Chinese bring down the value of the stocks in a structured way? For example, forcing some groups to buy out others off-market, hence pushing the loss on them? That's what the Federal Reserve did after Lehman Brothers. Bear Stearns went to JP Morgan. Merrill Lynch wen to Bank of America. But that's because the Federal Reserve provided a lot of...lubrication. I'm sure the CCP could provide the same. But with the 2007/8 example JP Morgan & Bank of America weren't as hosed as everyone else so they could "handle" the burden of the buyouts. Whether similar entities exist in China capable of taking it on isn't something I'd know.
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Jul 9, 2015 04:42
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Crashrat posted:That's what the Federal Reserve did after Lehman Brothers. Bear Stearns went to JP Morgan. Merrill Lynch wen to Bank of America. China would need to bail out Banana Cart Man, and if they did it would just end up being a big arbitrage opportunity. Which means that it is probably Plan K.
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Jul 9, 2015 05:02
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ocrumsprug posted:China would need to bail out Banana Cart Man, and if they did it would just end up being a big arbitrage opportunity. Which means that it is probably Plan K. Could you elaborate on your hypothetical arbitrage opportunity?
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Jul 9, 2015 09:07
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.. aaand SHCOMP:IND is now up 5.76%.
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Jul 9, 2015 12:03
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uncleTomOfFinland posted:.. aaand SHCOMP:IND is now up 5.76%. Are the suspended stocks back in play? Or is this just institutional investors buying blue chips?
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Jul 9, 2015 13:09
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Can someone explain how an entire market can move up 6% when basically 90% of the stocks are essentially frozen.
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Jul 9, 2015 14:01
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jm20 posted:Can someone explain how an entire market can move up 6% when basically 90% of the stocks are essentially frozen. Please respect Chinese culture.
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Jul 9, 2015 14:02
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fits my needs posted:Please respect Chinese culture. The western financial media seems to be: quote:MarketWatch: Chinese stocks make biggest daily gain in 6 years
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Jul 9, 2015 14:15
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Marketwatch is always horseshit, don't take any tips from them: http://www.marketwatch.com/story/contrarians-say-chinese-stocks-could-rally-29-in-three-months-2015-07-09 quote:CHAPEL HILL, N.C. (MarketWatch) — Rarely are investors served up as ideal a buying opportunity as currently provided by the Chinese stock market.
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Jul 9, 2015 14:17
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quote:月份炒股：我吃什么，狗吃什么。6月份炒股：狗吃什么，我吃什么。 7月份炒股：把狗吃了
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Jul 9, 2015 14:21
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Welp, Chinese stock crisis is over! Wrap it up, Chinailureailures
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Jul 9, 2015 14:36
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fits my needs posted:Please respect Chinese culture. The Chinese cat is very insulted by you claiming that it is being supported by wires and insinuating a lack of vital signs.
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Jul 9, 2015 15:31
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I see Marketwatch has never heard of a bull trap. Excellent!Crashrat posted:Could you elaborate on your hypothetical arbitrage opportunity? No bailout in the history of the world has included the likes of Mr. Banana Cart. If the Chinese set up a system where some people got to offload their shares at more than current market value, those lucky people would buy out banana cart investors to flip to the bailout buyer. Since China is China party insiders would likely be first in line.
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Jul 9, 2015 17:32
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ocrumsprug posted:I see Marketwatch has never heard of a bull trap. Excellent! This is only workable if you have insider information to let you buy out Mr. Banana Cart before the bailout is offered to Mr. Banana Cart. Being China I'm sure there'd be no shortage of people with that insider information, but it's not strictly arbitrage.
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Jul 10, 2015 01:00
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Crashrat posted:This is only workable if you have insider information to let you buy out Mr. Banana Cart before the bailout is offered to Mr. Banana Cart. If you think everyone would get a bailout in those circumstances, and not just a very small elite subset of people, you would be the person that the Chinese crisis measures are tailored for.
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Jul 10, 2015 01:59
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The stock market was tailspinning and then literally overnight it posts the biggest gains in six years? I know that it's a potemkin market but can someone explain precisely how so that I understand it better?
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Jul 10, 2015 03:54
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The government shoveled enough of people's pension money into the market to keep it afloat. It will probably prolong the bubble a few weeks/months and make the crash even bigger
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Jul 10, 2015 03:59
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icantfindaname posted:The government shoveled enough of people's pension money into the market to keep it afloat. It will probably prolong the bubble a few weeks/months and make the crash even bigger I thought that the government literally froze most stocks and removed the worst performing ones from the market? If that's the case then why should literally anyone take the Chinese stock market seriously? Why should it be listed next to New York, London, and Tokyo as though it's equally legitimate?
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Jul 10, 2015 04:05
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You're getting real close to hurting the feelings of the Chinese people.
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Jul 10, 2015 04:09
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Vladimir Putin posted:Imagine you have a painting done by Picasso when he was at age 3. This painting ultra rare and considered by many tone a window into his developmental phase as an artist. It's considered by many to be worth hundreds of millions of dollars. The market for the paintings absolutely zero because there is a limited number of people with 100 million dollars who want to spend it on a Picasso. Therefore the painting at any time is if extremely high value but highly illiquid. There are simply no buyers. There you go. How is it worth 100 million if nobody is going to buy it at 100 million?
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Jul 10, 2015 04:12
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Soviet Space Dog posted:How is it worth 100 million if nobody is going to buy it at 100 million? It's highly illiquid, that's all he's saying. There's probably a handful of people who would be willing to pay that price and you have to get them at the right time and place for them to be willing to make that kind of purchase.
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Jul 10, 2015 04:22
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Are the frozen stocks still frozen? Or did they join back up again for today's 5% rally?
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Jul 10, 2015 04:23
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Freezer posted:Are the frozen stocks still frozen? Or did they join back up again for today's 5% rally? They're frozen for like 6 months IIRC.
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Jul 10, 2015 04:30
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EngineerJoe posted:It's highly illiquid, that's all he's saying. There's probably a handful of people who would be willing to pay that price and you have to get them at the right time and place for them to be willing to make that kind of purchase. Yes the problem with the Chinese stock market is "illiquidity" and not "this thing is worthless". If your hypothetical Picasso turned out to be made of paper produced in the 1980s and drawn in crayon with "by Billy Smith" scribbled in the corner and the idiot who bought it last is willing to sell it in exchange for a bus ticket home, it's not worth 100 million no matter how many experts claim otherwise.
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Jul 10, 2015 04:32
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Shanghai is up 5.68%, Shenzhen is up 4.something%, seems like you Foreign Dogs don't understand capitalism as well as you thought, it takes an inscrutable people to understand inscrutable markets
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Jul 10, 2015 04:33
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Fojar38 posted:I thought that the government literally froze most stocks and removed the worst performing ones from the market? If that's the case then why should literally anyone take the Chinese stock market seriously? Why should it be listed next to New York, London, and Tokyo as though it's equally legitimate? And yeah they did that too. I guess they're hoping that when they unfreeze them in a few weeks/months they won't plummet immediately?
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Jul 10, 2015 04:42
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This can only be good for Bitcoin.
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Jul 10, 2015 05:12
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EngineerJoe posted:It's highly illiquid, that's all he's saying. There's probably a handful of people who would be willing to pay that price and you have to get them at the right time and place for them to be willing to make that kind of purchase. So when talking about prices, time is a key component. A better question might be, what is that paintings market value now, or in the next 24 hours?
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Jul 10, 2015 05:25
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Fojar38 posted:I thought that the government literally froze most stocks and removed the worst performing ones from the market? If that's the case then why should literally anyone take the Chinese stock market seriously? And you very well know that they will.
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Jul 10, 2015 05:32
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Fojar38 posted:The stock market was tailspinning and then literally overnight it posts the biggest gains in six years? I know that it's a potemkin market but can someone explain precisely how so that I understand it better? It even has a very funny name: https://en.wikipedia.org/wiki/Dead_cat_bounce See also: catching the falling knife. You also saw the same thing with housing in the US during the crash period, there were always brief recoveries where people though the market had "bottomed out". tsa fucked around with this message at 05:41 on Jul 10, 2015 |
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Jul 10, 2015 05:36
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McDowell posted:This can only be good for Bitcoin. Under the wreckage of the Chinese economy......something has survived. Dogecoin is BACK. 
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Jul 10, 2015 06:13
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People mentioned a bailout for select investors. If state-owned-enterprises and investors backed by state-owned-enterprises, who have nearly unlimited lines of credit with the Bank of China, bought shares at face value while most other trades were suspended... what would you call that? Who are selling the shares that institutional investors have been ordered to buy? To clarify, somebody is getting cash for almost certainly overvalued stocks. Who is receiving the cash and unloading stock on institutional investors? They sound like the recipients of a bailout, and a generous one too. Arglebargle III fucked around with this message at 06:45 on Jul 10, 2015 |
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Jul 10, 2015 06:28
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tsa posted:It even has a very funny name: As Deng xiaoping would say. It doesn't matter what colour the cat is if it's dead.
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Jul 10, 2015 06:28
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http://www.ft.com/cms/s/0/a24c6f0e-264f-11e5-bd83-71cb60e8f08c.html#ixzz3fSFt8wae on Sunday, the new graduates of Tsinghua University are set to gather in their smartest attire to celebrate degrees from one of China’s most prestigious institutions, a place that has fostered generations of political leaders. Just after the ceremony starts — according to a written agenda — the graduates must “follow the instruction and shout loudly the slogan, ‘revive the A shares, benefit the people; revive the A shares, benefit the people’.” …“In China, the markets are operated by the state, regulated by the state and legislated by the state, and raise funds for the benefit of the state by selling shares in enterprises owned by the state,” wrote Carl Walter and Fraser Howie in Privatizing China, a look into how Beijing has perverted the market to make stocks serve socialism. …The near 30 per cent slump in the Shanghai and Shenzhen stock indices — which has wiped some $3tn off the value of all listed companies in three weeks — comes from a collapse in confidence that the Communist party can continue to effectively manipulate the market. It is a sharp indictment of the party’s prestige. Not only has Beijing orchestrated a propaganda blitz over months to drive stock prices higher, it also fostered a surge in margin lending that lured millions of retail investors to leverage up their exposure to a share bubble.
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Jul 10, 2015 06:31
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Arglebargle III posted:People mentioned a bailout for select investors. If state-owned-enterprises and investors backed by state-owned-enterprises, who have nearly unlimited lines of credit with the Bank of China, bought shares at face value while most other trades were suspended... what would you call that? This sort of thing is oftend used to inspire confidence in the market so the connected could get their money out. I really have no idea if that is what is happening here or if the government is just flailing. Jumpingmanjim posted:http://www.ft.com/cms/s/0/a24c6f0e-264f-11e5-bd83-71cb60e8f08c.html#ixzz3fSFt8wae This sort of stuff is nuts. Trying to form a weird hybrid of the old command economy and a standard market economy is just going to be a complete disaster. You can't force prosperity by waving your hands. tsa fucked around with this message at 06:42 on Jul 10, 2015 |
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Jul 10, 2015 06:39
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I wonder if they've considered putting up some kind of banner, maybe white letters on red? I'm just throwing out ideas.
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Jul 10, 2015 06:52
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Y'all tripping balls. China had more money than good right now and they will pull through this.
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Jul 10, 2015 07:26
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tsa posted:This sort of stuff is nuts. Trying to form a weird hybrid of the old command economy and a standard market economy is just going to be a complete disaster. You can't force prosperity by waving your hands. Going to be? Like 40% of all the food in the country is poisoned with cadmium already
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Jul 10, 2015 07:27
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