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"Different this time"?
Yep, it's a bubble all right. Those 3 words are all you need to know - when the public says that it's time to look at selling.
China to Take Down World Financial Markets
- Thread starter Kimosabi
- Start date
Yep, it's a bubble all right. Those 3 words are all you need to know - when the public says that it's time to look at selling.
Small corection yes,....but the crunch will come AFTER the olympic games...the Chinese will manage their economy as much or as good as possible...as THE CHINESE do not wish to lose face...I see good rises till after the OLYMPIC GAMES...maybe I am wrong.... I have Chinese friends...and saving face is one of their customs...and money is to the CHINESE very important part of their life....so I for one will stay invested.....but we all have to decide what is best for us....IMHO
chops_a_must
Printing My Own Money
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I agree Chicken.
There are a number of factors that people need to take into consideration as well. Firstly, less than 10% of all chinese savings are in the share market (according to Lateline tonight), so even if their share market tanks, it's really not going to have a huge impact, as it would in other places. Secondly, the chinese share market has absolutely no correlation to the chinese economy. This is because chinese residents have incredibly limited choices when it comes to investment. Thirdly, they will end up owning the world, so in the long run it isn't going to matter anyway.
No, seriously. A 7 seven year commodities bull run will make it the shortest in history. I cannot see how this could be when we have the two most populous nations industrialising at the same time. Japanese industrialisation changed world markets forever, and I don't see why this time around it would be any different.
Any weakness in commodities, and there will be, in my mind will just encourage state sponsored development projects. Maybe it is in the interests of the chinese to tank world markets so they can get things done on the cheap... who knows?
CanOz
Home runs feel good, but base hits pay bills!
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Yanks didnt care about Chinese markets.
I think that proves my point well.
And China thought they were soooo important....
Can you remember a time when they really cared about anybody?
Cheers,
Can you remember a time when they really cared about anybody?
Cheers,
You're 100% correct and i agree.
But then why was everybody expecting them to follow China if it corrected?
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Can you remember a time when they really cared about anybody?
Cheers,
the US poured a massive amount of money and effort into germany and japan after the wars, laying the basis for the stability we see in those areas today. unfortunately they seem to now be run by corporate whores of the worst kind which isn't doing anybody any favours, least of all themselves (as in their wider society, not their elite. elites always do well)
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People have taken Chinese share market too seriously. Indeed, the share market has little relevance to the overall economic development and trend in China.
Share market has been in China only less than two decades. Due to the untransparency and immature accounting and auditing systems, the listed companies rarely provide authentic information to public. The market has been used by comany onwers to get funds for expansion while take little accountability and responsibility for the operation of the companies. It's currently still a largely speculative market where fund managers and big players manipulate the market to profit.
Of course in the long run, the market will be more efficient and will be play a more substantial role in the national economy, but currently it provides little function as indication for the total economy performance.
Share market has been in China only less than two decades. Due to the untransparency and immature accounting and auditing systems, the listed companies rarely provide authentic information to public. The market has been used by comany onwers to get funds for expansion while take little accountability and responsibility for the operation of the companies. It's currently still a largely speculative market where fund managers and big players manipulate the market to profit.
Of course in the long run, the market will be more efficient and will be play a more substantial role in the national economy, but currently it provides little function as indication for the total economy performance.
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Yeh US down in the morning then up to 6year highs - guess it was shrugged off.
As someone suggested above, seems like more than any global reaction to their market is more a people-getting-scared thing than an actual - how to say this - real reasons? (like actual economic reasons).
I just keep thinking - if someone had put $50K in there 2yrs ago, they could possibly have $200K now..
If someone offered me a 400% return in under 2yrs Id laugh haha
PS: Can - where you at in china?
As someone suggested above, seems like more than any global reaction to their market is more a people-getting-scared thing than an actual - how to say this - real reasons? (like actual economic reasons).
I just keep thinking - if someone had put $50K in there 2yrs ago, they could possibly have $200K now..
If someone offered me a 400% return in under 2yrs Id laugh haha
PS: Can - where you at in china?
Kauri
E/W Learner
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Over 10% in 2 days... Not a bad pullback all the same...
Index Value: 3,862.67
Trade Time: 10:04PM ET
Change: -190.42 (-4.70%)
Prev Close: 4,053.088
Open: 4,006.28
Day's Range: 3858.04 - 4077.74
52wk Range: 1,541.41 - 4,283.93
Index Value: 3,862.67
Trade Time: 10:04PM ET
Change: -190.42 (-4.70%)
Prev Close: 4,053.088
Open: 4,006.28
Day's Range: 3858.04 - 4077.74
52wk Range: 1,541.41 - 4,283.93
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Another exponential chart - too scary for words
NEW YORK (MarketWatch) -- China's booming A-share market could turn into a bubble if speculation among exuberant domestic retail investors is not curbed, Goldman Sachs warned Thursday, as the Shanghai Composite Index hit yet another intraday record high.
"Market trading statistics, liquidity indicators, and anecdotal evidence all point to optimistic, if not exuberant, sentiment in the domestic market," said Thomas Deng, analyst at Goldman Sachs, in a Thursday research report.
"As speculation continues to be nurtured among domestic retail investors, we see genuine risks of market euphoria materializing if regulators fail to step up their efforts to contain market irregularities," Deng said.
Other financial firms, including UBS Securities, as well as Governor Zhou Xiaochuan of the People's Bank of China have also expressed concern in recent days about the possibility of a bubble forming in the stock market.
Well done Uncle Festivas, you were only out by 100 points.
The question now, is will it keep going up after a temporary pull back, stabilise or go down as quick as it went up, only time will tell I guess.
On a side note, don't be surprised if we see an announcement out of the US in the next week or so regarding a ratcheting up of more Trade Sanctions, I suspect the US will see this as an opportunity to sink the boot in.
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Ohhhh, this is so true here from a Chinese's point of view here as well. (though living in Aus for too long)
Creating wealth is like....OUR PURPOSE FOR LIVING, and SAVING FACE is definitely one of our custom. We "naturally" do WHATEVER it takes to create wealth, even if it means indirectly harming someone else in the process. A little off topic.
However, I would say the same human psychology of fearing to lose by rapidly selling if the situation becomes untenable will still occur. How much more drop before we see massive selling? I have no idea...
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Read in the Shanghai Daily last week that many Shanghainese were becoming unhappy with their ayis.
Ayis are chinese domestic helpers, mostly with little education. Apparently many are spending too much time on their mobile phones talking to their stockbrokers and are not doing their jobs properly.
Scarey stuff!
Ayis are chinese domestic helpers, mostly with little education. Apparently many are spending too much time on their mobile phones talking to their stockbrokers and are not doing their jobs properly.
Scarey stuff!
how about the opinion on:China government increase in stamp duty from .1 to .3% in Midnight
i am chinese, now people are curse their goverment and a big chaos will be happen! I have got -30% in my credit card . **** son of beach
perhaps we will be good friends
i am chinese, now people are curse their goverment and a big chaos will be happen! I have got -30% in my credit card . **** son of beach
perhaps we will be good friends
wayneL
VIVA LA LIBERTAD, CARAJO!
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ebing,
It's not a good idea to put your email address in a public forum, you will get spammed mercilessly. I will delete it if you want. Let me know.
Cheers
Nizar, what surprises me about the bears carrying on about the fact that the Chinese market is going to bring down world financial markets is the fact that the Chinese market has gone ballistic during the past couple of years whereas the Aussie market and most other markets haven't gone up anywhere near as much. Hence, as we're seeing, each time the Chinese market falls significantly we only catch a very small dose of a cold, definitely not the flu.
DYOR
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