Last day of the China stock market rout

by Chris Becker

Closed on Thursday and Friday for celebrations and a big-ass military parade (because why not), today is the last day to trade Chinese shares for the week, which may give overseas traders some breathing room.

Although the Shanghai Composite looks set to open down over 4% this morning, so maybe not…

In other news, authorities have started to ban 3rd party margin lending accounts (i.e outside the official brokerage houses) and have started to re-finance many brokerages in anticipation of further reinvestment in blue chip stocks to halt the terminal slide of the bourse.

Yep, that’ll work. All praise the A-shares!

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Comments

  1. National Team will ensure glorious A-shares finish on a positive note before glorious victory day parade!

    • Josh MoorreesMEMBER

      I’ve never understood why they didn’t just manipulate the futures market like the US does? way less liquid so much more bang for your buck.

  2. Josh MoorreesMEMBER

    haha they’ll have to get it green for the day no matter the cost. Crazy thing is it was getting close to fair value before they stepped in again last week. Instead throw good money after bad for appearances.

  3. Josh MoorreesMEMBER

    epic vertical ramp into the break to get SSE green for the day after being more than 4% down. Japan and the US markets clearly think this is great news. Lets hope they get a nice ramp out of it all since everything going to plan there should be no more buying come Monday (although I’m sure they’ll backtrack on that too).

  4. Quote of the day…

    Why is China finding it hard to fight the markets? Because there are no markets. – h/t Susan the other

  5. 10 minutes (i.e. after post-lunch resumption) to get back on the wrong side of yesterday’s close.
    Hmmm….

    • Josh MoorreesMEMBER

      yeah this is why I’m expecting fireworks come Monday. If they follow through and stop supporting they will be straight back to limit down days I think. At least until they backflip again.

      • They’re only 800-900 points up on where they were a year ago, which is presumably the gains delivered by the bubble. Given they’ve already lost 2000 points, why not pack it in and let the last bit fall away?
        Could be over in a week of limit down days.

      • Josh MoorreesMEMBER

        I think it just comes down to incompetence, for a non democratic country they are very sensitive to public mood as they know rising living standards are the only thing keeping the CCP around. Mix in a little corruption and you’ve got a great mixture to simply make things worse.