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The Chinese Stock Market Crash

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  1. #31

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    HSI has dropped pretty spectacularly today.

    I don't get this whole trading suspension. Can companies turn their stocks on and off as they please? So theoretically, HSBC could go "we will only allow investors to trade our stock on the 1st of every month"?


  2. #32

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    Quote Originally Posted by shri:
    HSI has dropped pretty spectacularly today.

    I don't get this whole trading suspension. Can companies turn their stocks on and off as they please? So theoretically, HSBC could go "we will only allow investors to trade our stock on the 1st of every month"?
    I'm with you on this. Surely a market where you can not buy or sell is not a market? I go back to my previous so far unanswered question, how long can a "temporary" suspension be? One week, one month, one year?

  3. #33

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    The Chinese Stock Market Crash

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    So what's the yield on capital invested (incl. fees ) and after tax, if any, for the stock you just bought?


    Sent from my iPhone using GeoClicks
    Last edited by Morrison; 08-07-2015 at 03:45 PM.

  4. #34

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    Blue line is Hong Kong market, Red China...

  5. #35

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    however, the PRC regulator is unlikely to do anything about it as it helps them stabilize the market.
    A number of HK listed Chinese companies have also suspended. Is that automatic following mainland suspensions or does the Hang Seng also have a mechanism where a company can request voluntary suspension of trading?

  6. #36

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    Beyond the immediate investor panic about the stock market, let's get something straight here about the fundamentals of the Chinese economy. Some commentators are even comparing China to Greece and saying China is the more serious of the two.

    That to me is utter and complete nonsense. China still has a growing economy. Its slowing for sure but it is not a crisis, and certainly can't be compared to Greece.

    Few Chinese hold equities and they rely on traditional income growth through salary and savings. So to say the market crash will crimp Chinese consumption is a gross exaggeration.

    So before any of you fall for the "Chinese economic crisis" bs, look at the underlying conditions of China instead.

    Last edited by Cho-man; 08-07-2015 at 04:34 PM.

  7. #37

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    Quote Originally Posted by Cho-man:

    That to me is utter and complete nonsense. China still has a growing economy. Its slowing for sure but it is not a crisis, and certainly can't be compared to Greece.

    Few Chinese hold equities and they rely on traditional income growth through salary and savings. So to say the market crash will crimp Chinese consumption is a gross exaggeration.
    In March of this year alone almost 6 million NEW Chinese retail investors entered the market.
    Bloomberg categorized nearly 6% of new Chinese stock investors as “illiterate.”
    2/3rds never attended high school.
    It is guys like this (not the smart money) that are getting smoked this week and to think that this sort of move in the markets wont have an effect on consumption is naive.

  8. #38

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    Quote Originally Posted by rathunt:
    In March of this year alone almost 6 million NEW Chinese retail investors entered the market.
    Bloomberg categorized nearly 6% of new Chinese stock investors as “illiterate.”
    2/3rds never attended high school.
    It is guys like this (not the smart money) that are getting smoked this week and to think that this sort of move in the markets wont have an effect on consumption is naive.
    As a proportion of the total Chinese population, that is a tiny number. I don't buy the doomsayers talk about the Chinese economy.

    The fact is, most Chinese do not own stocks. To say consumption will fall apart because of this is irrational and betray ignorance of the real Chinese economic conditions.
    Last edited by Cho-man; 08-07-2015 at 05:11 PM.

  9. #39

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    But then you could say that unless you are selling chopsticks and rice bowls, most Chinese do not matter in a consumption economy.

    Effects of trickle down can be severe to those who are living on the fringe.

    rathunt likes this.

  10. #40

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    Quote Originally Posted by Cho-man:
    Beyond the immediate investor panic about the stock market, let's get something straight here about the fundamentals of the Chinese economy. Some commentators are even comparing China to Greece and saying China is the more serious of the two.

    That to me is utter and complete nonsense. China still has a growing economy. Its slowing for sure but it is not a crisis, and certainly can't be compared to Greece.

    Few Chinese hold equities and they rely on traditional income growth through salary and savings. So to say the market crash will crimp Chinese consumption is a gross exaggeration.

    So before any of you fall for the "Chinese economic crisis" bs, look at the underlying conditions of China instead.

    This is far from over yet, sit back & enjoy the show

    Last edited by Open Casket; 08-07-2015 at 05:19 PM.
    shri and 7jai like this.

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