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China Down another 5.8%

scott
edited July 2015 in Off-Topic
http://seekingalpha.com/news/2612635-the-chinese-bear-keeps-growling

"Following a slump of nearly 30% in Chinese stocks since mid-June, China Securities Regulatory Commission has now set up a team to look at "clues of illegal manipulation across markets."

--------------------------
"Today, I want to share with you an excerpt from a New York Times article that was published in April 2008. At that time, the Chinese stock market crash was already well underway, but U.S. stocks were still in great shape…

The Shanghai composite index has plunged 45 percent from its high, reached last October. The first quarter of this year, which ended Monday with a huge sell-off, was the worst ever for the market.

Suddenly, millions of small investors who were crowding into brokerage houses, spending the entire day there playing cards, trading stocks, eating noodles and cheering on the markets with other day traders and retirees, are feeling depressed and angry."

http://seekingalpha.com/article/3301725-guess-what-happened-the-last-time-the-chinese-stock-market-crashed-like-this

---

No, I'm not saying there's another 2008 coming, but I will say that I didn't recall the Shanghai market dropping like that before our market did.

Comments

  • catch22catch22
    edited July 2015
    Hi @scott
    An add-on related story from an Indian source that I read eariler today.

  • Sven
    China Securities Regulatory Commission (CSRC) was probing investors who used stock index futures to short the market.
    Shorting an index is a common trading practice in stock markets, so NOT sure that is the only cause of the steep decline. There are reports that few large state run companies are manipulating their earnings.
  • rjb112
    "Suddenly, millions of small investors who were crowding into brokerage houses, spending the entire day there playing cards, trading stocks, eating noodles and cheering on the markets with other day traders and retirees, are feeling depressed and angry."

    The two human emotions that move markets: fear and greed.....
  • scott
    "Suddenly, millions of small investors who were crowding into brokerage houses, spending the entire day there playing cards, trading stocks, eating noodles and cheering on the markets with other day traders and retirees, are feeling depressed and angry."

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