china stockexchange sse
- Thread starter Peter
- Start date
Mainland Chinese shares continued to plunge on Wednesday, falling over 8% at one point despite more moves by regulators to stabilise the market.
The Shanghai Composite was down 5.9% to 3,506.22 in early trade.
That came despite the insurance regulator raising the limits for insurers to invest in blue chip stocks to 10% of their total assets, from 5%.
Hong Kong's Hang Seng index was down 5.1% to 23,710.97, following the mainland's fall.
The country's securities regulator said on Wednesday that its state-backed margin finance firm will provide adequate liquidity for brokerages to try to ease the "panic sentiment" in the market.
Greece worries
The rest of Asia was lower as investors remained cautious about the uncertainty over Greece's position in the eurozone and the lack of a resolution to the debt crisis
Bbc
The Shanghai Composite was down 5.9% to 3,506.22 in early trade.
That came despite the insurance regulator raising the limits for insurers to invest in blue chip stocks to 10% of their total assets, from 5%.
Hong Kong's Hang Seng index was down 5.1% to 23,710.97, following the mainland's fall.
The country's securities regulator said on Wednesday that its state-backed margin finance firm will provide adequate liquidity for brokerages to try to ease the "panic sentiment" in the market.
Greece worries
The rest of Asia was lower as investors remained cautious about the uncertainty over Greece's position in the eurozone and the lack of a resolution to the debt crisis
Bbc
Down 4% at moment.
Politics not economics
Some analysts dismiss the fear that a full blown stock market collapse could precipitate a wider economic shock.
"The stock market is too small, too tiny, completely irrelevant," Chen Long, China economist at Gavekal Dragonomics tells me. "It accounts for just 5% of Chinese household wealth and anyway the market is still up on where it was last year."
Much more could yet be wiped off the value of Chinese shares, it would follow, before anyone needs to panic, least of all the government. So perhaps, if this view is correct, Beijing's actions are motivated by the need to contain the political fallout, rather than the economic.
In the middle of an already tricky slowdown in GDP growth the last thing it needs is hordes of mom and pop stock traders taking to the streets. And so far, at least, that part of the strategy might be working with little sign of any anger.
Despite her already heavy losses, Lin Jinxia's plan is to hang onto her massively devalued stock in the hope it rises again. "I believe the government will come up with the right strategies," she tells me.
...........
In China, unlike in the European or US markets, individuals make up around 80% of the investors.
Many of them are new and inexperienced, often following whim and rumour to make decisions and so the market is arguably more vulnerable to quick turnarounds in herd behaviour.
Having been marching share prices up the hill for well over a year, on 12 June the crowd suddenly veered back down again and three weeks later almost a third of the value - $3.2 trillion - had been wiped away in three short weeks.
'I knew there were risks'
Confident investor
BBC news
Politics not economics
Some analysts dismiss the fear that a full blown stock market collapse could precipitate a wider economic shock.
"The stock market is too small, too tiny, completely irrelevant," Chen Long, China economist at Gavekal Dragonomics tells me. "It accounts for just 5% of Chinese household wealth and anyway the market is still up on where it was last year."
Much more could yet be wiped off the value of Chinese shares, it would follow, before anyone needs to panic, least of all the government. So perhaps, if this view is correct, Beijing's actions are motivated by the need to contain the political fallout, rather than the economic.
In the middle of an already tricky slowdown in GDP growth the last thing it needs is hordes of mom and pop stock traders taking to the streets. And so far, at least, that part of the strategy might be working with little sign of any anger.
Despite her already heavy losses, Lin Jinxia's plan is to hang onto her massively devalued stock in the hope it rises again. "I believe the government will come up with the right strategies," she tells me.
...........
In China, unlike in the European or US markets, individuals make up around 80% of the investors.
Many of them are new and inexperienced, often following whim and rumour to make decisions and so the market is arguably more vulnerable to quick turnarounds in herd behaviour.
Having been marching share prices up the hill for well over a year, on 12 June the crowd suddenly veered back down again and three weeks later almost a third of the value - $3.2 trillion - had been wiped away in three short weeks.
'I knew there were risks'
Confident investor
BBC news
-j-p-shmorgan
New Member
Just heard on the news.....
Over 1400 stocks have been suspended in order to suppress the downfall.
(Over 50% of stocks)
They have lost $3Trillion already, and the government has been buying stocks to stop the downfall to no avail.
So much for China being the next economic powerhouse. lmfao
Over 1400 stocks have been suspended in order to suppress the downfall.
(Over 50% of stocks)
They have lost $3Trillion already, and the government has been buying stocks to stop the downfall to no avail.
So much for China being the next economic powerhouse. lmfao
silver kook
Active Member
Wow declining so rapidly and short selling is outlawed.
millededge
Active Member
love that. 5pc of Chinese wealth.
China's regulators are taking fresh steps to try to quell volatility in the country's financial markets.
Investors holding stakes of more than 5% are not allowed to sell shares in the next six months.
The new rule from the country's securities regulator is intended to relieve pressure on the stock market.
Despite efforts to stem the losses, the dramatic sell-off in China's main stock market continued on Wednesday, with the Shanghai Composite plunging 6.8%.
That took share values nearly 30% below their June peak.
On Wednesday, another 500 listed firms said they would stop trading their shares in an effort to insulate themselves from the meltdown.
Around 1,300 firms have halted trading, almost half of China's main shares.
IG chief market strategist Chris Weston dubbed the sell-off "Black Wednesday".
"For the first time, The China Insurance Regulatory Commission (CIRC) has admitted there is genuine 'panic selling' underway.
"When we see around 90% of the market suspended or falling by their daily limit (while further measures have been taken to limit the
influence seemingly exerted by futures traders) you know things are becoming less rational," he said.
'Market stability'
Chinese regulators made a string of pledges on Wednesday to try to ease the "panic sentiment
BBC News
..
Dow down 1.5% wed
Investors holding stakes of more than 5% are not allowed to sell shares in the next six months.
The new rule from the country's securities regulator is intended to relieve pressure on the stock market.
Despite efforts to stem the losses, the dramatic sell-off in China's main stock market continued on Wednesday, with the Shanghai Composite plunging 6.8%.
That took share values nearly 30% below their June peak.
On Wednesday, another 500 listed firms said they would stop trading their shares in an effort to insulate themselves from the meltdown.
Around 1,300 firms have halted trading, almost half of China's main shares.
IG chief market strategist Chris Weston dubbed the sell-off "Black Wednesday".
"For the first time, The China Insurance Regulatory Commission (CIRC) has admitted there is genuine 'panic selling' underway.
"When we see around 90% of the market suspended or falling by their daily limit (while further measures have been taken to limit the
influence seemingly exerted by futures traders) you know things are becoming less rational," he said.
'Market stability'
Chinese regulators made a string of pledges on Wednesday to try to ease the "panic sentiment
BBC News
..
Dow down 1.5% wed
