China - Shanghai Stock Exchange SSE

[chops_a_must]

The Chinese markets are pricing in the possibility of further tightening ahead of stronger than expected growth figures.

Cheers,

I agree with Halba here. And this growth figure certainly does not give me reason to think we are going to have a change in the status quo for a little while yet.

And as a counter to Buffettology on the other thread. The China stock market has absolutely zero correlation to the underlying economy. Fluctuations in that market are meaningless to us.

What will be interesting to see, is if the Chinese decide to get rid of their US currency. Will be interesting to see what happens to gold overnight.

 

[CanOz]

The China stock market has absolutely zero correlation to the underlying economy. Fluctuations in that market are meaningless to us.

Exactly my point, they are reacting to internal information, not to the reaction of the more traditionally rational Asian market declines, Japan, Hong Kong, Taiwan, Singapore, Korea and India.....and the ASX of course.

Cheers,

 

[bigdog]

http://www.theaustralian.news.com.au/story/0,20867,21702862-643,00.html

Chinese shares break through 4000 as punters pile in

May 10, 2007

SHANGHAI: Chinese share prices closed up 1.6 per cent yesterday, breaking through the psychologically important 4000-mark for the first time, dealers said.

They said the sustained Chinese advance is being driven by massive inflows of fresh funds as smaller investors take their money out of low-return bank deposits and punt on stocks.

At the same time, a slow but steady appreciation in the yuan offers all investors an additional incentive to increase their exposure to Chinese stocks as the economy roars along at double-digit growth rates.

The Shanghai Composite Index, which covers A and B shares, closed up 63.07 points at a fresh record of 4013.09, after moving between 3875.38 and 4015.22 throughout the day, they said.

Turnover rose to 255.33 billion yuan ($40 billion), also a new record, from 205.19 billion yuan in the previous session.

The Chinese yuan closed at 7.6954 yuan to the dollar on Tuesday after China's central bank set the parity rate at 7.6951 yuan, the first time it has broken the critical barrier of 7.70.

The Shanghai market is now sitting on gains of well over 200 per cent since January last year while Shenzhen A shares are up more than 280 per cent.

At the end last month, China's total stockmarket capitalisation hit 16 trillion yuan, according to the Shanghai Security News.

In the first quarter of 2007, 4.78 million stock accounts were opened in China and in April alone another 4.5 million new accounts were set up, according to an earlier report by the official Xinhua news agency.

Further evidence of the booming east Asian markets came yesterday with the operator of the Hong Kong stock exchange, Hong Kong Exchanges & Clearing, announcing that first-quarter profit jumped 93 per cent.

Net income rose to $HK922.5 million ($1.42 million) from $HK478.8 million a year earlier on a 64 per cent gain in revenue, the company said.

 

[CanOz]

This has got to be the understatement of the year!!!!! From Bloomberg:

Chinese Stocks May Have `Correction,' Goldman Says (Update2)

By Darren Boey

May 10 (Bloomberg) -- China's stocks may face a ``correction'' as valuations have exceeded earnings prospects after the benchmark index tripled in the past year, according to Goldman Sachs Group Inc.

The CSI 300 Index has climbed 86 percent in dollar terms this year, the best performance among 90 stock benchmarks tracked by Bloomberg. It more than doubled in 2005.

``Current valuations are demanding and seem to have outpaced the improvement in market fundamentals,'' analysts at Goldman including Thomas Deng wrote in a report today. The ``risk of market euphoria is building.''

Goldman's comments come less than a week after central bank Governor Zhou Xiaochuan expressed concern about the rally, which has made China's stocks the most expensive among the world's major markets. The gains have drawn investors in record numbers and made the nation's stock markets the busiest in Asia, ahead of Japan and Hong Kong.

The CSI 300, which tracks yuan-denominated A shares listed on the country's two exchanges, rose 0.9 percent to 3,734.02 as of 2:01 p.m. in Shanghai, set for the highest close since the measure was introduced in April 2005. It's valued at 42 times reported earnings, more than double the Morgan Stanley Capital International Asia Pacific Index's 19 times.

Earnings, Deposit Rates

Shares such as China Merchants Bank Co. and Citic Securities Co. are surging as economic growth that's topped 10 percent for the last four years boosts corporate earnings. Profits at Chinese companies listed in the A-share market grew 82 percent in the first quarter from a year earlier, beating analyst estimates, Goldman said.

China Merchants, the nation's seventh-largest lender, has gained 190 percent in the past 12 months and Citic Securities, the biggest publicly traded brokerage, has quadrupled. First- quarter earnings at China Merchants jumped 72 percent, while Citic Securities reported a 10-fold surge in profit. The two stocks are the biggest contributors to the CSI 300's increase in the past year.

Government restrictions that keep bank deposit rates below the rate of inflation and property-tax increases announced over the past two years are also helping steer more of the nation's 17.2 trillion yuan ($2.2 trillion) of household savings into equities.

Record Account Openings

China's investors opened 385,121 new accounts at brokerages on May 8, the highest daily tally since records were first published by the China Securities Depository and Clearing Corp. in June 2005. The value of trades on the nation's two bourses yesterday totaled $48.96 billion, almost matching the combined turnover of $48.98 billion recorded on the Asia-Pacific region's other exchanges, according to data compiled by Bloomberg.

``There's a huge amount of wealth looking for a home in China and they're not happy with putting it in the bank,'' said Robert Lutts, who manages about $500 million as president of Cabot Money Management in Salem, Massachusetts.

A net 175 billion yuan of cash flowed in to Chinese stocks in April, according to a report published yesterday by the research arm of Shanghai-based Shenyin & Wanguo Securities Co. China's mutual fund assets jumped 33 percent to 1.14 trillion yuan in the first quarter, according to industry researcher Z- Ben Advisors Ltd., which is also based in Shanghai.

The stock market ``could develop into a bubble if speculative activity continues to spread among retail investors,'' the Goldman analysts wrote. ``If the negative real interest rates are left unchecked, asset inflation may soon advance into unsustainable territories.''

Clampdown?

The China Securities Regulatory Commission on March 20 barred companies from using share-sale proceeds to invest in stocks. The regulator may step up efforts to cool the rally by tightening share-buying restrictions further and imposing taxes on stock-market gains, Jonathan Anderson, UBS AG's Hong Kong- based chief economist, said in a report today.

A slump in China's stocks may be felt beyond its borders. A record 9.2 percent plunge in the CSI 300 on Feb. 27 triggered a five-day rout that wiped more than $3.3 trillion from the market value of equities worldwide.

 

[Captain_Chaza]

Ahoy there

For what it is worth?

I would just like to remind everyone that "Gambling" is Illegal in China
However, Investing in the Stockmarket is Legal

Salute and Bon Voyage

 

[nizar]

Damn SSEC is up 20-fold in the last 16 years.
Makes the ASX look like bearmarket LOL.

(note: now its at 4000. Chart is not uptodate)

 

[CanOz]

Some profit taking on the SSE today, closed down 3.6%

Cheers,

 

[bigdog]

http://www.sse.com.cn/sseportal/en_us/ps/home.shtml

2007-05-15- 15:05
Indexes-PrevClos-Last ---High---- Low ----Change%
SSE 180 8322.88 8004.54 8353.39 7995.15 -3.82
SSE 50 2885.51 2770.66 2895.32 2768.93 -3.98
SSE Composite 4046.39 3899.18 4069.85 3891.36 -3.64
SSE New Composite 3417.89 3291.24 3435.16 3284.15 -3.71
SSE Dividend 3489.16 3347.87 3500.09 3339.20 -4.05
SSE A Share 4241.44 4086.45 4263.07 4077.78 -3.65
SSE B Share 316.79 310.68 344.93 310.37 -1.93
SSE Fund 2964.27 2892.74 2975.23 2886.41 -2.41
SSE Government Bond 111.24 111.16 111.24 111.14 -0.07
SSE Corporate Bond 121.41 121.32 121.45 121.23 -0.07

 

[bigdog]

http://www.theaustralian.news.com.au/story/0,20867,21744203-643,00.html

China index soars
Rowan Callick, China correspondent
May 17, 2007

THE Chinese share market continued its roller-coaster ride yesterday when stocks in Shanghai climbed 2.2 per cent, erasing investor angst that the bubble was about to burst.
On Tuesday, the market fell 3.6 per cent, following a record close on Monday.

The government-owned China Securities Journal reported yesterday that retail buyers were responsible for 65-70 per cent of all share sales on the country's two exchanges, in Shanghai and Shenzhen - well above the international average.

Tuesday's share slide now appears to have been caused principally by profit taking as the Shanghai index hit the psychological barrier of 4000 points. It closed yesterday on 3845.

More than 30 shares yesterday reached the Chinese stock market limit of a 10 per cent rise or fall in any one day, and turnover was a strong $26 billion.

Meanwhile, JP Morgan announced it had sacked Tang Jian, a senior fund manager in its Shanghai-based asset management business, following an official probe into share trading.

The statement said Mr Tang, the first fund manager to be removed in this way since the mutual fund industry began to boom in China, was suspected of insider trading and "did not report to the company about his family's investment activities, which seriously violated our company's rules".

 

[>Apocalypto<]

Down again today -4 to -5%

 

[Kimosabi]

China's Stocks Post Record Drop; Extend Rout Past $350 Billion

By Zhang Shidong

June 4 (Bloomberg) -- China's key stock index plunged by a record number of points after the government's main securities daily signaled officials won't try to halt a slump that's erased more than $350 billion of market value in four days.

The CSI 300 Index dropped 292.52, or 7.7 percent, to close at 3511.43. The measure, which doubled in the past six months, has plunged 16 percent from its May 29 peak after the government tripled the tax on share trades to 0.3 percent.

The speed that stock prices soared by was ``extremely unusual'' and highlighted ``structural bubbles'' in the market, the state-owned China Securities Journal wrote in an editorial.

More than half of the stocks included in the CSI 300 plunged by the 10 percent daily limit, including Huaneng Power International Inc., the nation's largest electricity producer, and Air China Ltd., the biggest international carrier.

``There's panic selling,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages about $517 million. ``Investors are convinced the government won't do anything to support the market.''

China Vanke Co. led declines among property developers after a newspaper report said the government will soon announce measures to cool the real estate market, including increasing the supply of land.

Even after the recent declines, the CSI 300, which tracks yuan-denominated A shares listed on China's two exchanges, is up 72 percent this year.

`Unsustainable'

Volatile price moves within each trading day reflected the ``weak sentiment'' among investors and the fact that the rally was ``unsustainable,'' China Securities Journal, which is affiliated to Xinhua News Agency, said. The CSI 300 today gained as much as 0.5 percent and fell as much as 7.8 percent.

China's increase in stamp duty is a ``proper forward- looking adjustment'' to avoid greater ``systemic risks'' in the market and to ensure its healthy development, the paper said.

Concern that the government will further lift taxes on share trading was heightened on June 1, after figures showed the increase in stamp duty failed to deter investors from opening accounts.

More than 420,000 brokerage accounts were set up on May 30, exceeding this quarter's average of about 300,000, official figures show. The number of accounts last week topped 100 million for the first time.

Huaneng Power plunged 1.60 yuan to 11.89, while Air China slid 1.07 yuan to 9.68. They've lost 19 percent and 13 percent, respectively, since stamp duty was raised last week.

China Petroleum & Chemical Corp., Asia's biggest oil refiner, dropping 1.52 yuan to 13.65.

Low-Cost Housing

China Vanke, the nation's biggest property developer, retreated 1.82 yuan, or 10 percent, to 16.38. Poly Real Estate Group Co., China's third-largest developer by market value, dropped by the daily limit, sliding 3.94 yuan to 35.51.

The government also plans to build more low-cost housing, the Economic Times reported, citing unidentified sources.

China has stepped up measures to curb lending that's fueling a surge in real estate prices, seeking to maintain social stability. The government in February tightened tax rules on property gains, after it earlier raised interest rates and taxes and restricted lending to developers. Average prices in China's 70 largest cities rose 5.4 percent in April from a year earlier, according to the country's top planning body.

The drop in Chinese shares had little effect on the rest of the region today, with benchmarks in Australia, Japan and Hong Kong all posting gains. The Morgan Stanley Capital International Asia-Pacific Index added 0.6 percent to 152.30 as of 4:18 p.m. in Tokyo, extending a two-day, 2 percent rally.

A 9.2 percent decline on the CSI 300 on Feb. 27 sparked a global sell-off that wiped out about $3.3 trillion of stock market value. The index's fall, triggered by a crackdown on investments with borrowed money, was its biggest decline since the measure was introduced in April 2005.

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, slid 8.3 percent to 3670.40. The Shenzhen Composite Index, which covers the smaller one, lost 7.9 percent to 1039.90.

http://www.bloomberg.com/apps/news?pid=20601087&sid=au9qV8VcFjO8&refer=home

Well it looks like the Chinese Government's intervention has worked. A 16 percent fall will start feeding on itself going down.

I wonder how long it will be before the US announces across the board Trade Sanctions against China to hammer the final nail in the Coffin.

 

[bigdog]

http://www.sse.com.cn/sseportal/en_us/ps/home.shtml#

SSE was down well and truly today big time!!

2007-06-04- 15:05
Indexes Prevclos--Last----High ---Low ----Change%
SSE 180 8416.49 7768.52 8483.98 7746.97 -7.70%
SSE 50 2906.59 2695.77 2935.88 2685.73 -7.25%
SSE Composite 4000.74 3670.40 3987.27 3659.09 -8.26%
SSE New Composite 3384.64 3101.97 3374.22 3092.10 -8.35%
SSE Dividend 3394.94 3098.74 3409.42 3078.79 -8.72%
SSE A Share 4197.08 3850.38 4182.01 3838.41 -8.26%
SSE B Share 282.33 260.32 290.28 259.85 -7.80%
SSE Fund 3190.14 2994.34 3240.75 2982.21 -6.14%
SSE Government Bond 110.62 110.49 110.65 110.44 -0.12%
SSE Corporate Bond 119.99 119.89 119.99 119.77 -0.09%

 

[CanOz]

This is weird. This is the intraday chart of the SSE, check out that big spike!

1 billion shares, in 1 minute....no announcements, looks like it might have been the Chinese PPT!!

What a turn around...must be a historical 1 day turnabout.

Cheers,

 

[>Apocalypto<]

This is weird. This is the intraday chart of the SSE, check out that big spike!

1 billion shares, in 1 minute....no announcements, looks like it might have been the Chinese PPT!!

What a turn around...must be a historical 1 day turnabout.

Cheers,

that's the power of all those people Can nothing supprises me there I am now thinking 5-10% anit even a shiver in the chinese mind set.

good point though looks like some one stepped in to do something!

 

[Captain_Chaza]

I often tell my kids

I have never lost a ship

"Except for Twice"!

Once in the Asian crisis in the latter part of the 20th century
and then Secondly in the Russian crisis

Fortunately I told my mother we were in it for the long term and
so I still stand before you!

Most storms develop many miles off-shore of Australia and many thousands of miles away from our shores

As I see it?
The trick is to face the seas with all her rage and not to lose anotrher Ship?

Salute and Gods Speed

 

[Pat]

I often tell my kids

I have never lost a ship

"Except for Twice"!

Once in the Asian crisis in the latter part of the 20th century
and then Secondly in the Russian crisis

Fortunately I told my mother we were in it for the long term and
so I still stand before you!

Most storms develop many miles off-shore of Australia and many thousands of miles away from our shores

As I see it?
The trick is to face the seas with all her rage and not to lose anotrher Ship?

Salute and Gods Speed

You've lost 2 ships
So you mean hold tight hey, and you held through 87 crash? Whats this russian crisis? 1960's?

 

[Captain_Chaza]

The Russian Crisis was only a small one as I remember

A Nuclear power station Blew up and contaminated the the Northern Hemisphere

It did not effect us as much Down-under in the Southern Hemisphere as it did in the Northern hemisphere

Why should this effect us ?

We Down-Under revolve around our planet quite "Differently"

Salute and Gods' speed

 

[>Apocalypto<]

The Russian Crisis was only a small one as I remember

A Nuclear power station Blew up and contaminated the the Northern Hemisphere

It did not effect us as much Down-under in the Southern Hemisphere as it did in the Northern hemisphere

Why should this effect us ?

We Down-Under revolve around our planet quite "Differently"

Salute and Gods' speed

Cap,

from reading your other post you have a negative look toward CFD's, sure you did not lose a third ship in a margin storm??

 

[Captain_Chaza]

Cap,

from reading your other post you have a negative look toward CFD's, sure you did not lose a third ship in a margin storm??

Ahoy Officer Trade-it

With my rotten luck if I had ever gone into Margin / High leveraged IOU type Huge Interest Rated contracts and promisory notes that could hit the sky
I doubt very much I would be here totay to talk about it and
Even laugh about it!

Salute and Gods Speed

 

[>Apocalypto<]

Ahoy Officer Trade-it

With my rotten luck if I had ever gone into Margin / High leveraged IOU type Huge Interest Rated contracts and promisory notes that could hit the sky
I doubt very much I would be here totay to talk about it and
Even laugh about it!

Salute and Gods Speed

Cheers Captian Chaza,

Just a harmless dig!