Chinese stock markets have proposed “circuit breakers” to freeze trading if stocks rise or fall too fast, after recent fluctuations on its bourses [sic] spooked global markets, a news report said Tuesday, dpa reports.
The Shanghai and Shanzhen exchanges would see trading stopped for 30 minutes if a key index rises or falls by 5 per cent within a day.
An intra-day change of 7 per cent would cause trading to be stopped for the rest of the day, the South China Morning Post reported, citing the exchanges. Continue reading
When there’s no other investor to turn the market around other than the government, which nine times out of ten compounds the problem, you know it’s done.
China has spent $144 billion (€132bn) to bolster the country’s fragile stock market since June, Goldman Sachs has estimated, but still has more than that amount in reserve to deploy if stocks resume their sharp descent.
The coalition of state financial institutions – the “national team” – has a war chest of roughly $322 billion at its disposal to support the market, the bank believes.
INVESTORS in Britain and around the world have been sent into panic today after China’s stocks plummeted by 8.5 per cent – the largest one-day fall in almost eight years.
The FTSE 100 was in the red this morning after share indices in the world’s second-largest economy suffered their worst drop since 2007.
The fall in China is part of a wider slump in the country’s stocks that first began in mid-June, amid fears the China’s finance bubble had burst.
Previously China’s indices had almost doubled in the space of just a year.
The country’s Government had managed to briefly calm nerves with a raft of support measures, but today investors appeared to have lost all faith in official efforts to prop up values. Continue reading
China’s stock market had what traders call a “Dead Kitty” bounce on Thursday as the communist authorities dispatched police and security personnel to “encourage” insider-buying and to arrest short sellers. With the Chinese market still highly inflated even after falling $3 trillion in value, China took action last night to “nationalize” about $6 trillion in losses.
China is about to show its third straight quarter of negative real (after inflation) GDP growth. The nation had been relying on a stock market boom to play a “decisive role” in funding the nation’s “Silk Road” reforms to transition to a consumer economy.
But as Breitbart News warned in “China’s Lehman Brothers Weekend Begins,” the “Red Dragon” has suffered a financial collapse equivalent in degree to the U.S. stock crash in 2008-9. Unlike the U.S., which used a formal government bailout to stabilize markets, the Communist Party instructed the nation’s banks to use their own balance sheets to guarantee the current $8 trillion stated value of all of China’s 2800 listed stocks. Continue reading
China looks like it is heading for its version of the 1929 stock market crash
While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.
In any normal summer, a 30pc fall in the Chinese stock market – a loss of value roughly equivalent to the UK’s entire economic output last year – after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.