>china ends it's circuit breakers
>hey guys china is fixed markets stabilized
>up 2%!!!!
>meanwhile, the sell ban is still in place for most investors after being extended another six months yesterday
>investors can't liquidate assets to pay bank loans
china's banks will need cash infusions in 4 months just watch
2% is hardly a sign of anything good, given the 7% fall beforehand. Dead cats will bounce.
>>1031831
It doesnt make sense to me. If the market tsnked +5% yesterday in the first 20 min of trading, why would those same sellers not want to sell the next day? I'm calling shenanigans.
>>1031838
because those sellers already sold, the bagholders are individual chinese citizens who aren't allowed to sell their shares for anothers six months
http://www.ft.com/intl/cms/s/0/150fc4aa-b426-11e5-aad2-3e9865bc6644.html#axzz3weNht2j3
The sell ban is separate from the circuit breaker, we would have had the sell off six months ago if the first ban was not put into place. That one was supposed to expire today but was extended to June. China is artificially constraining it's markets, because the CCP politburo seriously thinks this will somehow stop a crash.
Either China has a stock crash now and a mortgage meltdown (since in China people commonly use their homes as collateral for margin calls), or they cause citizens to go bankrupt and cause a mortgage meltdown as people go bankrupt and cause a bank confidence crisis.
>>1031847
Oh shit that's what I get for not reading. I thought that all the stops were pulled. What a joke of a free market
>>1031853
>china
>free market
They were always communist, but people believed their lies about their "miracle of state capitalism". Now that the markets are falling due to powers outside their control (dropping US consumer spending, leading to dropping factory output) they are completely clueless and don't know what to do.
The worst part for them is that just now the truth of their botched books is starting to come out:
http://www.telegraph.co.uk/finance/economics/11930766/The-truth-behind-Chinas-manipulated-economic-numbers.html
http://www.economist.com/blogs/freeexchange/2015/10/chinas-data-doubts
http://www.ft.com/intl/cms/s/0/cb446e10-6057-11e5-97e9-7f0bf5e7177b.html#axzz3weNht2j3
China is in for a really bad year.
>>1031857
Very interesting, I don't know much about Chinese markets but I know.enough about mainland Asians to agree with your sentiments of the people and the government. What are the geopolitical ramifications?
>>1031862
depends entirely on how stupid the ccp is, right now they're starting a pissing match in the south china sea with the US and all their neighbors (vietnam and the phillipines, mostly)
if they stop doing that and print yuans they'll devalue their currency to the point where they will become palatable to foregin companies again, compared to cheaper countries (like malaysia, vietnam, the phillipines, india and bangladesh)
or they could continue being stupid and have the US end free trade with them, especially if the GOP obtain full control in a year
related:
http://fortune.com/2016/01/07/china-stock-market-crash-2/
