Chinese stock market crash; has the bubble finally burst?

[Ideologue]

devalue drahma

That's your solution to everything.

[Duque de Bragança]

devalue drahma

That's your solution to everything.

What do you expect from a drahma queen?

[Crazy_Ivan80]

and factories and logistic centers moved there from the Rich North.

that won't happen until they seriously reform their state-apparatus. And it's far from sure they'll be able/willing to do that. Greece defaults on average every 30 years or so (or about 5 times since independence)

[jimmy olsen]

$4 Trillion!? Holy crap!

http://www.abc.net.au/news/2015-07-05/china-freezes-share-offers-as-market-plunges/6596186

China freezes share offers as market plunges in threatening blow to economy

Updated about 3 hours ago

China has frozen share offers and set up a market-stabilisation fund, as Beijing intensified efforts to pull stock markets out of a nose-dive that is threatening the world's second-largest economy, according to Wall Street Journal reports.

Beijing's reported suspension of initial public offers (IPOs) came a few hours after extraordinary announcements by major brokers and fund managers which collectively pledged to invest at least $25 billion of their own money into stocks.

China's government, regulators and financial institutions have waged a concerted campaign to prop up the nation's two main share markets, amid fears that a meltdown would rock the financial system and inflict heavy losses across an economy where annual growth is already running at a 24-year low.

Almost $4 trillion in market value — more than the entire economic output of Brazil — has been wiped out since markets went into reverse last month, posing a bigger headache for many global investors than even the Greek debt crisis.

The main Shanghai Composite Index has lost around 30 per cent of its value in three weeks — a dramatic end to an equally breathtaking rally that saw it more than double in just seven months, fuelled by official interest-rate cuts.

The sell-off is especially worrying because the bull market had been built on a mountain of speculative loans.

Some analysts have suggested total margin lending, both formal and informal, could add up to around $858 billion.

The stock markets are dominated by retail investors.

China's top brokerages said on Saturday they would collectively buy at least 120 billion yuan ($26.6 billion) of shares — a pledge that, according to the Wall Street Journal, would form part of Beijing's new stabilisation fund.

Separately on Saturday, 25 Chinese mutual funds announced they too would put their own capital into stocks.

The fund managers did not give a figure but said they would invest into their own funds, alongside their customers.

Reuters

[Drakken]

And those millions of small-time investors who, to finance themselves buying stocks and profit from the bull market, used margin trading and speculative loans will face total ruin and bankrupcy.

[Monoriu]

And those millions of small-time investors who, to finance themselves buying stocks and profit from the bull market, used margin trading and speculative loans will face total ruin and bankrupcy.

I don't think there is personal bankruptcy in China.  You owe people money, you repay them.  No way out of it.  It is ok for your children to help if you die though 

[Siege]

Well, I really hope the chinese bubble keeps going. We all know is a effing fake as can possibly be bubble, but the burst will hurt every body. (My family have a few shekels invested in Chinese assets).

[Tonitrus]

Well, I really hope the chinese bubble keeps going. We all know is a effing fake as can possibly be bubble, but the burst will hurt every body. (My family have a few shekels invested in Chinese assets).

Lolz, you've just validated every CdM "Siege is selling us out to the Chinese" joke ever made. 

[Razgovory]

I am ready to buy when it hits bottom.  I can't wait 

Maybe they'll try austerity and fire a bunch of civil service employees.

[Monoriu]

I am ready to buy when it hits bottom.  I can't wait 

Maybe they'll try austerity and fire a bunch of civil service employees.

Once again you fail to distinguish between Hong Kong and China.  Our public finances are separate, our stock markets are separate, and our civil service systems are separate. 

[Admiral Yi]

Plus the connection between a popping stock market bubble and austerity is tenuous to nonexistent.

[Siege]

Well, I really hope the chinese bubble keeps going. We all know is a effing fake as can possibly be bubble, but the burst will hurt every body. (My family have a few shekels invested in Chinese assets).

Lolz, you've just validated every CdM "Siege is selling us out to the Chinese" joke ever made. 

Whoa, whoa, having some minute investment in china does not equal favoring a communist dictatorship.

Right is right, and China ain't right.
All my chips are clearly on the American side.
And if I ever had any ideas,  my wife would smack me on the head with an American made frying pan.
Our two boys are Americans.

Shit. Did I tell you guys we have two boys?
I remember I told you about Yonatan, how I had to go through fertility treatment to get my sperm count up. Well, Yonatan is 3 years old. And my wife wanted another kid. A girl. So I went through the same shit again for her, but it was a boy. Hadriel will be a year old on August.
When im done with this stupid drill sergeant school I will post a few pics of the boys. They are amazing. Hyperactives like me.

[Razgovory]

Plus the connection between a popping stock market bubble and austerity is tenuous to nonexistent.

Popping stock market will result in lower revenues, lower revenues result in defict spending, and we cure deficit spending by austerity.  Or at least theoretically.

[Admiral Yi]

Popping stock market will result in lower revenues, lower revenues result in defict spending, and we cure deficit spending by austerity.  Or at least theoretically.

Are you sure China has a capital gains tax?

[Siege]

Corporate taxation is double taxation.