From the AFR:
The chief executive of Platinum Asset Management said in a market update to investors that the government might have exacerbated the selling that has seen the Shanghai market fall 30 per cent from its peak over recent weeks.
“The disturbing feature is the government’s apparent loss of poise,” Mr Neilson said. “Several measures have been rolled out in quick succession including the suspension of IPOs, easier margin regulations and direct market intervention.
…Like many investors still positive about Chinese growth, Mr Neilson admitted that the firm is still grappling with the question of whether this is a dip worth buying.
Here is some advice, Kerr, sell the rebound. I have no idea whether the Chinese Communist Party will able to force up stock prices at the point of a gun. What I can say is that the prospect of it is so completely perverse that nobody else has any clue, either. As such it presents an entire universe of unknown unknowns and is very obviously not a good investment (whether it goes up or not).
