Monday, July 6, 2015

Samuel Shen — Chinese stocks rise after Beijing unleashes emergency support

In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
China cuts the margin rate, supplies liquidity, temporarily  suspends IPOs, and re-instutues the specialist function. Markets stabilize.
On Sunday, China state-owned investment company Central Huijin said it had recently been buying exchange-traded funds and would keep doing so.
The aim was to signal to China's army of retail investors, who conduct around 85 percent of share transactions, that the government is standing behind the market.
Analysts cautioned, however, that the latest policy moves may only bring short-term relief.
"The government measures are only aimed at stabilizing the market, and providing an exit for those who want to get out," said Liu Li, analyst at Shanxi Securities Co.
"Theoretically, the central bank's money is unlimited, but you cannot expect the government to use public money to buy shares which are still expensive, such as ChiNext shares."
The headline should be, "China conducts orderly correction to prevent panic."

Wasn't that what the US government did at the time of the GFC? Why are Westerners mocking China for it now?

Reuters
Chinese stocks rise after Beijing unleashes emergency support
Samuel Shen

10 comments:

mike norman said...

Whoever shorts the Chinese market is a fool. I hope they carry Jim Chanos out on a stretcher.

Malmo's Ghost said...

Our ES 30+ gap fill wasn't too shabby either, absent emergency support of any kind I'm sure. :)

Matt Franko said...

Tom we let it crash... hence the "C" in "GFC"...

I think you may have put your finger on it with these "ordo" people.... they like the "pain" or something... pretty f-ed up people... I'd throw Bernanke and Paulson into this camp based on their inaction when we needed intervention

I was looking into it... there are apparently arch. records at Gobekli Tepe of this kind of behavior...

This is what Graeber should be looking into if he is an anthropologist... stop studying chimpanzees and "debt"... he's way off track...

They seem to be bred out of the Asians... they are definitely in the West... right now VERY prominent in Europe but they are here in the US too... always trying to become more influential...

This may ultimately be what we are up against... "ordo-libertarians" as I might term them...

Matt Franko said...

Tom:

https://en.wikipedia.org/wiki/Göbekli_Tepe

Round up the usual suspects:

" It has been excavated by a German archaeological team..."

"The site was first noted in a survey conducted by Istanbul University and the University of Chicago in 1963...."

Coincidence? I think not... rsp,

Tom Hickey said...

Tom we let it crash... hence the "C" in "GFC"...

That's true, Matt, but they quickly couldn't stomach it. Paulson had to excuse himself to go barf he was so scared when he saw that the wheels were starting to come off.

Maybe the Chinese learned from the US experience and decided to act more promptly. But they don't have politics to deal with and the economic liberals that dogmatically believe in liquidationism.

Matt Franko said...

That's like putting on the hair shirt for these ordo people Tom... or what is termed a 'cilise'...

https://en.wikipedia.org/wiki/Cilice

"There is some evidence, based on analyses of both clothing represented in art and preserved skin imprint patterns at Çatalhöyük in Turkey, that the usage of the cilice predates written history. This finding has been mirrored at Göbekli Tepe, another Anatolian site, indicating the widespread manufacturing of cilices. Ian Hodder has argued that "self-injuring clothing was an essential component of the Catalhöyük culturoritual entanglement, representing 'cleansing' and 'lightness'."

Then we see the Germans and UofChicago people going back there to f-ing dig it up!... can you believe it!!!! they cant stand it being buried!

WEIRD-O-RAMA!!!!

Ignacio said...

It's a degeneration of Christianity. Calvinism etc.

OFC this is always recommended to others, not to self. So it's not really masochism, but sadistic, they like to see others suffer and punish them. Maybe a part of the population has some sociopathic traits, who knows, maybe not enough love when they were childs?

But the worst part is when this behaviours is institutionalized through economic ideology and spread like a mind poison through education. The Chinese may be in big trouble as the young western-educated economists come back home and start to take places of power, they suddenly may start thinking than they have run out of money and they have to collectively suffer for their sins.

P.S: This fatalism has been within certain segments of the North-European descendent since the time of the Vikings if you ask me.

Matt Franko said...

I, we have to figure out how to jettison this shit.... rsp

Matt Franko said...

I, also it looks to predate Christendom by a long shot....

I look at Gobekli Tepe as probably ruins of a pre-flood construction. ..... so this goes way back to the beginning imo...

Rsp

Matt Franko said...

maybe not enough love when they were childs?

That's the idea I get with Merkel... growing up in East Germany. . Father a Lutheran minister there probably pissed off all the time.... etc...

PTSD.... rsp