Chinese stock market crash; has the bubble finally burst?

[Monoriu]

Has Xi lost his mandate of heaven?

It takes a lot more than stock market crashes to lose mandates of heaven.

[jimmy olsen]

Has Xi lost his mandate of heaven?

It takes a lot more than stock market crashes to lose mandates of heaven.

A lot of these retail investors have no doubt loaned money from the shadow banking system to trade on margin, what happens when millions of them can't pay back what they owe? The over-leveraged, under-regulated banking system collapses, that's what.

[Admiral Yi]

A lot of these retail investors have no doubt loaned money from the shadow banking system

Physician, heal thyself.

[Monoriu]

Has Xi lost his mandate of heaven?

It takes a lot more than stock market crashes to lose mandates of heaven.

A lot of these retail investors have no doubt loaned money from the shadow banking system to trade on margin, what happens when millions of them can't pay back what they owe? The over-leveraged, under-regulated banking system collapses, that's what.

Is this wishful thinking, or realistic assessment?  This isn't the first time stock markets have crashed in China.  The party has survived these.  They can and will support the shadow banking system if necessary.

[Valmy]

Is this wishful thinking, or realistic assessment?  This isn't the first time stock markets have crashed in China.  The party has survived these.  They can and will support the shadow banking system if necessary.

This is Tim, Mono, the 'DISASTER AND APPALLING' guy. He sees disaster everywhere. I wouldn't be so presumptuous to assume he wishes for disaster to occur though

[Monoriu]

Is this wishful thinking, or realistic assessment?  This isn't the first time stock markets have crashed in China.  The party has survived these.  They can and will support the shadow banking system if necessary.

This is Tim, Mono, the 'DISASTER AND APPALLING' guy. He sees disaster everywhere. I wouldn't be so presumptuous to assume he wishes for disaster to occur though

He, like countless others, wants to see the end of the Chinese communist party.  I think that helps cloud his judgement. 

[Admiral Yi]

I think the repercussions could be serious.  A trillion people wiped out by doing what the Party told them to.

[Valmy]

He, like countless others, wants to see the end of the Chinese communist party.  I think that helps cloud his judgement. 

Party propaganda paranoia. He just loves train-wrecks. The CCP has certainly been good to the United States. Why would we want some insane populist group take over?

[Monoriu]

Trading of half the stocks on the Shanghai Stock Exchange has been suspended.  Major shareholders (those with 5% stakes or higher) have been forbidden to sell.  All state owned companies have been asked to buy shares, and any selling is strictly forbidden.  Important shareholders who have sold shares in the previous few months have been...invited to talks with party officials.  The People's Bank of China has promised unlimited ammunition for securities companies in their patriotic duty in supporting the stock market. 

[frunk]

Trading of half the stocks on the Shanghai Stock Exchange has been suspended.  Major shareholders (those with 5% stakes or higher) have been forbidden to sell.  All state owned companies have been asked to buy shares, and any selling is strictly forbidden.  Important shareholders who have sold shares in the previous few months have been...invited to talks with party officials.  The People's Bank of China has promised unlimited ammunition for securities companies in their patriotic duty in supporting the stock market.

And I thought it was a stock market.

[Monoriu]

Trading of half the stocks on the Shanghai Stock Exchange has been suspended.  Major shareholders (those with 5% stakes or higher) have been forbidden to sell.  All state owned companies have been asked to buy shares, and any selling is strictly forbidden.  Important shareholders who have sold shares in the previous few months have been...invited to talks with party officials.  The People's Bank of China has promised unlimited ammunition for securities companies in their patriotic duty in supporting the stock market.

And I thought it was a stock market.

This has become a battle to prove to the world that the party has control over everything.  At least everything that goes on in China. 

[Valmy]

According to you everything is that in the eyes of the party 

[Admiral Yi]

Mono, do you know if one can trade options on Chinaman markets?

[frunk]

This has become a battle to prove to the world that the party has control over everything.  At least everything that goes on in China.

Which is fine, it just isn't a stock market.

[Monoriu]

In other news, the HK stock index has also fallen sharply.  None of the Chinese state's policies apply to us, and our valuations are a lot lower (yes, shares of the same companies that are listed on both the HK and Shanghai stock exchanges have lower valuations in HK).  So, for a lot of Chinese companies, one of the few ways to sell shares for cash is Hong Kong. 

I am stockpiling ammunition to buy later.