• Saturday, December 15, 2018

Chinese stock exchange collapses.

Discussion in 'Central & South Asia' started by TACDE_IAF, Oct 11, 2018.

  1. TACDE_IAF

    TACDE_IAF BANNED

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    [​IMG]
     
  2. Peaceful Civilian

    Peaceful Civilian ELITE MEMBER

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    Due to increase in oil prices I Think.
     
  3. TACDE_IAF

    TACDE_IAF BANNED

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    No all markets fell as US Fed Reserves tightened rates.
     
  4. Yaseen1

    Yaseen1 SENIOR MEMBER

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    chinese economy run independently of stock market
     
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  5. Beast

    Beast ELITE MEMBER

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    India better worry about yourself. You do not have USD 3 trillion foreign reserve to cushion any fall... Rupee diving towards 75 vs 1 USD :yahoo:
     
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  6. Handshake

    Handshake FULL MEMBER

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    Patwari la ilaj will be on here like.
    Imran khan is responsible for that stock market instability in china.
     
  7. TACDE_IAF

    TACDE_IAF BANNED

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  8. Hassan Guy

    Hassan Guy SENIOR MEMBER

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    upload_2018-10-11_0-44-48.jpeg
     
  9. TACDE_IAF

    TACDE_IAF BANNED

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    Johnny Sins DP

    Futures of Shanghai composite is pegged at 2500.
     
  10. AndrewJin

    AndrewJin ELITE MEMBER

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    Chinese stock market is not parallel to Chinese economy....unlike other stock markets which usually reflect local economies.
     
  11. GeraltofRivia

    GeraltofRivia FULL MEMBER

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    If you want to troll, at least try to use some current photos. These are decades OLD photos, hmm:o:
     
  12. AyanRay

    AyanRay FULL MEMBER

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    So on what basis does the investors invest in Chinese stock markets, if not the state of the economy?

    Nowhere in the world the stock market runs the economy, its the other way round.
     
  13. bobsm

    bobsm FULL MEMBER

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    Why the drop in China's stock market might not reflect its economic reality

    National Economic Council Director Larry Kudlow raised eyebrows when he said in a Cabinet meeting with President Trump that China's economy "looks terrible."

    Kudlow may simply have been looking at the decline in the Shanghai stock market.
    But the Chinese stock market is not very efficient and does not necessarily reflect underlying economic realities.

    Bob Pisani | @BobPisani
    Published 7:52 AM ET Fri, 17 Aug 2018 Updated 8:47 AM ET Fri, 17 Aug 2018
    CNBC.com

    China's stock market is in terrible shape, but it may not reflect the state of the Chinese economy.

    National Economic Council director Larry Kudlow raised eyebrows Thursday when he said in a Cabinet meeting with President Donald Trump that China's economy "looks terrible."

    But does it really? Most estimates for China's 2018 economic growth remain near 6.5 percent. That doesn't mean there aren't concerns. New U.S. tariffs on Chinese goods are making it more costly for companies there to operate, and China's central bank has recently been pumping money into its economy.

    Kudlow simply may have looked at the Chinese stock market. The Shanghai exchange is down 25 percent from the high it hit at the end of January. He may have assumed that the decline reflects a dramatic deterioration in the Chinese economy.

    That, some traders said, would be a mistake.

    "I think our dear friend Larry Kudlow is off the mark," UBS' Art Cashin said on CNBC on Thursday. "In highly efficient full-production places like the U.S., the stock market is reflective somewhat to what the economy is doing. But there's almost a total disconnect in China," he said.

    Nick Colas, who runs market analysis firm DataTrek Research, agreed. "The Chinese stock market actually tells us very little about the country's economic welfare and doesn't play anywhere near as dominant a role in the lives of its citizens as the US equity market does in America," he wrote in a recent note to clients.

    Colas backed up his assertion by noting that the Shanghai Composite trades for less than half its October 2007 peak, yet China's economy in the 11 years since then has more than tripled to $13 trillion.

    The Shanghai market staged a huge rally from 2014 into 2015, more than doubling in value, but again collapsed and is trading 45 percent lower since 2015.

    "This decline has had no discernible impact on consumer spending or business investment over the last 3 years," Colas said.

    Colas also cited a September 2017 Bloomberg article noting that retail investors account for 80 percent of the trading volume on the Shanghai exchange. Colas said those traders can cause individual stock prices to swing wildly on arbitrary and noneconomic information.

    He agreed with Cashin's point that the Chinese stock market is not very efficient and does not necessarily reflect underlying economic realities.

    Finally, Colas noted that the allocation of household wealth to stocks in China is relatively minuscule: 4 percent versus 23 percent in the U.S.

    In China, households have far more of their wealth in cash (20 percent versus 4 percent in the U.S.) and real estate (65 percent versus 45 percent).

    And what about the super rich? Colas noted that they tend to invest in private equity and venture capital rather than having their core holdings in stocks.

    The fact that China's stock market does not necessarily reflect the state of China economy's has important policy implications: "Further declines in Chinese equities are unlikely to push the country's leaders into an unfavorable trade deal with the US," Colas said. "Stocks are just not a large enough part of household net worth there, and the country has a long history of growth despite equity market volatility."


    https://www.cnbc.com/2018/08/17/chinas-stock-market-drop-might-not-reflect-its-economic-reality.html
     
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  14. AndrewJin

    AndrewJin ELITE MEMBER

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    Only low-IQ people will think like that those fake western MSM....

    China continues to add entire indian economy every 2-3 years,
    no matter how the stock market performs.



    屏幕快照 2018-10-11 16.09.37.png
     
  15. 大汉奸柳传志

    大汉奸柳传志 FULL MEMBER

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    it's been collapsing for a while now....