Shanghai opens and crashes…again

by Chris Becker

Early indications were an open in the -5 to -6% range and that’s what we’ve got, down 6% to just over 3000 points:



ASX200 is brushing it aside as the buy the dip crowd continue to step in, the banks are all up 2% or more (Westpac up 4%!)


Again, this sort of volatility (we’re already above the 95 point, two week average true range or ATR level) is to be expected.

Indeed I would suggest a 5-10% rally on the ASX200 cannot be discounted in the following days on oversold exhaustion, particularly if the AUDUSD weakens from here.

But for Chinese stocks…..

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    • Josh MoorreesMEMBER

      slowly coming back, maybe the pension funds are being deployed today after writing yesterday off. If they keep this pace they’ll be in the black by lunch, maybe. Dalian seems to be enjoying some of the same sentiment as well nearly even for the day. RIO is up 3.5% and climbing. If SSE keeps this up maybe we’ll see all of yesterdays losses erased.

      Edit: Sorry we’ve actually already reversed yesterdays losses for the ASX. Another 60 points and we’re back to Friday close.

      • SSE just over 3072 and not going anywhere now. Maybe SSE will finish in the black, but can’t see any significant portion of yesterday being reversed.

      • Josh MoorreesMEMBER

        yeah does seem pretty steady at this price but when it comes to the SSE nothing is over until the close.

      • Broken down to 3025 – another very poor result seems on the cards unless a well resourced cavalry come to the rescue, and even then, seems like it will be about being less negative more than actually finishing positive.

  1. I’m calling the bottom for Shanghai at around 3000. Mind you I’ve never taken my own advice.

  2. Apparently, around two thirds of China’s millionaires have emigrated or plan to do so. My guess is that very the number of millionaires created this year in China will either be very small or more likely have a negative sign. Not good times for anyone whose business model requires an endless conga line of undiscerning mainlanders looking to stash their cash ABC (anywhere but China)

  3. Nikkei still meh, but off lows. National Team not having much impact. Hang Seng, Korea, Tapei all rallying. Aussie banks flying to the moon.

    ASX could be anywhere from up 5% to down 5% by 4pm today.

  4. Back in the Dark Ages, if you had big sell order to execute, the first thing you did was hit the offer and get the market buying. Then…..

  5. Our stocks are probably temporarily rising on the expectation of cancellation of the FED rate hikes and possibly more QE type of stimulus. Keep inflating the bubble 🙂

  6. Nikkei has joined the party now. National Team still can’t get things moving, but for today at least the world doesn’t care.

  7. It did not crash… I give you permission to use the below phrase
    ” it matched expectations, infact it slightly improved from negative 5% to negative 6%”

  8. Chris B, what ticker do you use in Google Finance for the Chinese share-market? I’ve found it somewhat temperamental as to whether the CSI 300 appears in Google Finance.