The People's Bank of China (PBOC) also rolled over 250 billion yuan of medium-term loans to banks late on Friday to ensure adequate liquidity in the system.
"The government must rescue the market, not with empty words, but with real silver and gold," said Fu Xuejun, strategist at Huarong Securities Co, before the CSRC and PBOC announcements, adding that a market crash would hurt banks, consumption, companies and even trigger social instability. "It's a disaster. If it's not, what is it?"
SeaGypsy wrote:If there was a POTUS like you, who actually grasped the dynamics of international relations, I doubt there would be half the crap going on at that level right now.
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Exchange data shows the balance of outstanding margin loans has fallen more slowly than the market drop and that leveraging has consequently increased to a record proportion of the market, creating a vicious cycle of pressure to sell.
Global investors have grown increasingly concerned that a full-blown crash could destabilise the world's second-biggest economy.
Commodities markets are also taking fright at what the slump says about the underlying economy, with prices of copper, coal, natural gas and iron ore falling toward their 2015 lows.
Pops wrote:Kind of interesting to me how little interest there seems to be here about the slowdown in China. A big part of the shortage of spare oil capacity last decade was to do with China's crazy growth rate, and now that it's growth is cooling it is an obviously large part of overall demand decline in commodities.
Pops wrote:Kind of interesting to me how little interest there seems to be here about the slowdown in China. A big part of the shortage of spare oil capacity last decade was to do with China's crazy growth rate, and now that it's growth is cooling it is an obviously large part of overall demand decline in commodities.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
NPR's Anthony Kuhn reports that over the past three weeks, the markets have lost some $4 trillion.
Pops wrote:hmmm, not sure what "structural" demand is T. If "structural" means what happened last week, I'm pretty sure that things have to be the same for the to happen again this week.NPR's Anthony Kuhn reports that over the past three weeks, the markets have lost some $4 trillion.
http://www.npr.org/sections/thetwo-way/ ... ets-plunge
I read that the stock markets there are not as big a deal as here as far as where people have their money. Still 4T is a chunk of change.
As well, the market is highly leveraged. What dawns on me is that whenever one issue falls in value and the margin call comes, it isn't just one person who loses, it is the guy who is underwriting him, and the guy who is on the other end of that guy's hedge, and the clients he represents, etc, etc...
I guess that is the definition of contagion.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
China’s securities regulator banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months, its latest effort to stop the nation’s $3.5 trillion stock-market rout.
Investors with stakes exceeding 5 percent must maintain their positions, the China Securities Regulatory Commission said in a statement. The rule is intended to guard capital-market stability amid an “unreasonable plunge” in share prices, the CSRC said.
Timo wrote:China's stock market was built on debt. That debt was financed by ponzi schemes.
Outcast_Searcher wrote:I'm amazed how clueless the Chinese seem to be about "managing" their stock market. For example:
http://www.bloomberg.com/news/articles/ ... six-monthsChina’s securities regulator banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months, its latest effort to stop the nation’s $3.5 trillion stock-market rout.
Investors with stakes exceeding 5 percent must maintain their positions, the China Securities Regulatory Commission said in a statement. The rule is intended to guard capital-market stability amid an “unreasonable plunge” in share prices, the CSRC said.
1). Stopping capital markets from being freely traded capital markets MAINLY serves to make investors lose confidence in a market when capital is no longer freely traded, but traded at the whim of the powers that be.
2). It's not like people with enough wealth to own 5% of a major company (and access to expert advice commensurate with that wealth) can't find a way to trade or place hedges on some other exchange in some other part of the globe.
3). This is after several other measures, which have cumulatively stopped trading on thousands of Chinese companies. For all intents and purposes, they've practically shut down the entire market, so people can't trade. Now THAT should inspire confidence. (Funny how they weren't trying to inject caution or place limits on trading while the market was booming month after month).
As a long term trader (who has never owned Chinese funds or ETF's), this makes me NOT want to consider doing some buying of those if the market goes down 90% or so -- as a matter of principle AND as a matter of practicality.
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