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China

Started by Old Tusk, July 10, 2015, 10:39:27 am

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Old Tusk

July 10, 2015, 10:39:27 am
Does anyone believe the Chinese stock market is really a market? Is it really an investment option at this point?
The Democrats are the party that says government can make you richer, smarter, taller and get the crabgrass out of our lawn. Republicans are the party that says government doesn't work, and then they get elected and prove it....P.J. O'Rourke

HawgWild

July 10, 2015, 12:15:23 pm #1
One of the morning shows did a segment about the China market from one of their trading establishments earlier this week after trading was halted. The set-up reminded me of an off track betting parlor: people watching the trading boards, studying their "forms", walking to the screens to place their bets.

Did you see the 60 Minutes segment a couple of years back where the Chinese were investing in real estate development? They'd created entire communities, shopping malls, apartments, etc. that were unoccupied. At that time the regular Joe couldn't invest in stocks, so this is how they invested. Both of these scenarios scream bubble!
 

aristotle

July 17, 2015, 07:48:24 am #2
Half a trillion in direct government purchasing of equities and banning of short selling. China's market is something all right...but definitely not an organic free market where price discovery is found in the balance of supply, demand, and future expectations based on any consistent model.

http://www.bloomberg.com/news/articles/2015-07-17/chinese-bazooka-xi-readies-483-billion-to-end-stock-selloff

Old Tusk

July 17, 2015, 10:10:56 am #3
This also makes me suspicious of there metrics like GDP
The Democrats are the party that says government can make you richer, smarter, taller and get the crabgrass out of our lawn. Republicans are the party that says government doesn't work, and then they get elected and prove it....P.J. O'Rourke

hog.goblin

July 17, 2015, 10:34:38 am #4
China's market depends on Trump.  He beats the Chinese.  But they like him.  He's really a nice guy.  He doesn't need their money becuase he is rich.


But seriously, I wouldn't touch the Chinese market.  Like many of their cities I'm afraid it's just empty, propped up, government spending.

Old Tusk

July 17, 2015, 11:28:25 am #5
Their housing bubble is probably worse than their market.
The Democrats are the party that says government can make you richer, smarter, taller and get the crabgrass out of our lawn. Republicans are the party that says government doesn't work, and then they get elected and prove it....P.J. O'Rourke

aristotle

July 27, 2015, 08:27:40 am #6
http://www.bloomberg.com/news/articles/2015-07-27/chinese-stock-index-futures-drop-before-industrial-profits

Ouch. 8% drop today alone. So much for half a trillion in equity boosting from the government. The government just lost $38B of the people's money in one session.

Time to fire up that next bazooka.

hog.goblin

July 27, 2015, 07:18:51 pm #7
Quote from: aristotle on July 27, 2015, 08:27:40 am
http://www.bloomberg.com/news/articles/2015-07-27/chinese-stock-index-futures-drop-before-industrial-profits

Ouch. 8% drop today alone. So much for half a trillion in equity boosting from the government. The government just lost $38B of the people's money in one session.

Time to fire up that next bazooka.
The Donald effect...  ;)
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