Chinese share market: Stocks plunge, half of listed stocks suspended from trading

[cnleio]

Are you sure about this? Can you explain what reasons you think gold will be higher in 5/10 years when gold price had drop consecutively recently. I have a couple reasons and it has to do with China but I want to know the people in the "known" if they get the same feeling as I do. I know I miss out the late 90s gold buying spree when it was $250 per oz. Now it is $1,200. I could have made a huge profit back then had I bought gold...

I do have a lot of cash that I don't know what to do but think of investing in gold for long-term.

Well u need ask a professional investor for help ... just in China due to high house price & falling down stock market, most ppl around me buying gold for long-term investment, and currently 240+ RMB/g is not a high price as far as i knew.

But for me ... i prepare for buying 2nd house for my family, according to past experience after stock market crash, it will soon or later affect house price in city ... i have some cash but not a lot, ready for a reasonable time to buy. I believe the opportunity is waving to me.

 

[Maxtini]

Are you sure about this? Can you explain what reasons you think gold will be higher in 5/10 years when gold price had drop consecutively recently. I have a couple reasons and it has to do with China but I want to know the people in the "known" if they get the same feeling as I do. I know I miss out the late 90s gold buying spree when it was $250 per oz. Now it is $1,200. I could have made a huge profit back then had I bought gold...

I do have a lot of cash that I don't know what to do but think of investing in gold for long-term.

That is relative to what currency you're buying the gold. If you bought gold with currency with high inflation/volatile exchange rate, gold is the choice of investment to shield you away from inflation and currency volatilty in the long run.

But relative to USD and other stable currencies~ gold is not a good investment.
In fact, no investors treat gold as investment vehicle and expect positive return every year. They treat gold only as stored value against inflation and economic uncertainties. When the economy is good, they will liquidate gold to invest in better market.

 

[Economic superpower]

I put the blame on the lack of implementation of important reforms. We read about great plans but what good are those plans if they are not implemented.

Read this:
Major investment projects still caught up in red tape - Business - Chinadaily.com.cn


Chinese stock market is like 90% retail investors and they use the stock market like gambling in a casino instead of investing based on corporate fundamentals. I can't think of any stock market where the retail investors are so dominant.

That's why Chinese stock market has extreme swings both up and down. When it goes up, it goes up crazy and when it goes down, it crashes like crazy. It's a herd mentality.

China needs a full overhaul of its entire financial system including banking system, stock market, bond market, etc.

The lack of a proper bond market is the biggest problem for companies to raise funding.
Small and medium companies cannot get a loan from state-owned banks as they only lend to big state-owned companies due to them being 'safe' loans. Even when a small or medium size company gets a loan, it gets horrible terms with very high interest rates and the maturity is very short plus you need a collateral. There are hardly any private banks in China. And the bond market is underdeveloped as red tape such as approval procedures take way too much time.

These are all problems because of lack of reforms and proper implementation of these reforms.

CPC will only learn the hard way. If this crash brings much needed reforms, then so be it.

 

[Bussard Ramjet]

Soon after 2~3 days, u will hear XinHua news the head of CSRC: XiaoGang be replaced ... I believe the China stock market will back to 1-year ago level:2000~3000... the most lost will be many smaller shareholders, BeiJing also will pay for this stupid lesson.

Those guys inside CSRC who trust West free economic market will get badly punishment, and this time such free China Stock Market taught BeiJing a good lesson. One thing told us, China doesn't prepare for West free market, at least now not good for China development.

It is not western free market, for western markets are very strict regarding insider trading, market manipulation, and the like.

As the guy said, the CSRC was simply sitting, when the Stock market was going nuts, and didn't notice this is market manipulation to gather cattle first, later on to be sheared. It is Chinese regulators at fault who allowed this brazen manipulation, along with indiscriminate margin lending. Also, they also used the state owned media to create a stock hype, so that people, including farmers, students, waiters, and the like, started not only putting their money, but borrowed money, and expected some magical results.

Indian markets are also trading 1.5% lower, might be a big red day

For Chinese it is green. In China, red is prosperous, and hence is used when markets go up!
An intriguing fact.

 

[Styx]

For Chinese it is green. In China, red is prosperous, and hence is used when markets go up!
An intriguing fact.

what, so Chinese charts higher close candles are red and lower close green ?

 

[Providence]

The point here is what kind of fool allowed the market to go up so fast in the first place when speculators were running riot and the market left unregulated.

That's the job of the CSRC. They failed. The head of the CSRC must be fired as a minimum punishment. Execution is my preferred form of punishment for a fool that was asleep at the wheel.

People are responsible for the money they are investing. Not some govt. appointed official. What govt should have done is repeatedly warn of an impending crash which ofc. they couldn't have done since they are not supposed to criticise the govt.

 

[Economic superpower]

People are responsible for the money they are investing. Not some govt. appointed official. What govt should have done is repeatedly warn of an impending crash which ofc. they couldn't have done since they are not supposed to criticise the govt.

What an idiotic comment.

No government will tell the world the stock market is going to crash and cause panic among investors. Every sane government will come out and reassure investors. Only a truly moronic government would warn of an impending crash. You will never see the US regime warn of impending crash even if the market is crashing like in 2008. It's about confidence, you don't want to lose that because then investors trade on fear.

It's the regulators job to raise margin requirements when margin trading has gone out of control. CSRC is a market regulator and they should have done their job to stop the speculative trading in its initial trading. The problem wouldn't have started if the regulators did their job properly.

 

[Providence]

What an idiotic comment.

No government will tell the world the stock market is going to crash and cause panic among investors. Every sane government will come out and reassure investors. Only a truly moronic government would warn of an impending crash. You will never see the US regime warn of impending crash even if the market is crashing like in 2008. It's about confidence, you don't want to lose that because then investors trade on fear.

It's the regulators job to raise margin requirements when margin trading has gone out of control. CSRC is a market regulator and they should have done their job to stop the speculative trading in its initial trading. The problem wouldn't have started if the regulators did their job properly.

Of course they will not dish it out explicitly. They are not stupid. But they can say something like "current levels are not sustainable in short term"; "expect a correction before the market moves forward"

But no one said nothing..

Common people do not understand about margin trading. They take impulsive buying decisions based on their limited understanding of wether the index would go up or down.

 

[vinay]

China on Wednesday said it was banning major shareholders, executives and directors of listed companies from selling any of their stakes for six months - the latest in long line of measures the country has introduced in recent days to stop a brutal market sell-off that has wiped more than $3 trillion of value off its main exchange

China imposes 6-month ban on stock sales - fastFT: Market-moving news and views, 24 hours a day - FT.com
.

 

[Jlaw]

My friend if you were of any economic knowledge you hadn't said that.
It takes time you know getting back 4 trillion plus inn pocket is not an easy job friend.

The $3 trillion is still there, it just changed hands.

Buy low, sell high is a good practice now. However I am interest in invest in gold? Anybody knows what the prospect on the price of gold will be in the next 5-10 years?

gold is golden. Wait until China get the Shanghai gold composite running later this year. You will see gold start to climb.

Buy low, sell high is a good practice now. However I am interest in invest in gold? Anybody knows what the prospect on the price of gold will be in the next 5-10 years?

Depends on inflation. Higher inflation gold goes higher. 1 oz of gold in 1971 was $35. $35 in 1971 buy you a very nice suit. Gold is $1200/oz now. Still can buy you a nice suit.
What will $35 buy you now?

 

[Jlaw]

Ok but i will tell you frankly that i never expected such a downfall. i am grateful that i didn't invest in China otherwise i would have became a beggar. Actually why i am so surprised is that Japan is struggling for so long but still there was neither such downfall in stocks in the past nor currently. India was also struggling with economy but still i didn't see such downfall. I hope they get that money back. But as you also know and i know too that it will take quite sometime.

Well you should stay away if you do not have disposable income to play. I can tell you I made the best gains during 2008 financial crisis.

 

[TruthSeeker]

Wow! What a surprise! The Commies can't run a stock market. The Commies can't run ANY market. At least not for very long. Anyone who is not, himself, an insider, who, nevertheless, invests in a market controlled by Commie insiders, is nuts.

 

[Mr.Nair]

China’s Stock Plunge Is Scarier Than Greece - WSJ

China’s 90 million retail investors outnumber the 88 million members of its Communist Party. Two thirds of new investors lack a high school diploma. In rural villages, farmers have set up mini stock exchanges, and some say they spend more time trading than working in the fields.

Chinese billionaires hit hard by stock market plunge - China.org.cn

 

[qwerrty]

chinese like to gamble as japanese men like to sniff womens dirty underpants. you can beat china easily in war by just creating as many casinos as you can in battlefields. i guarantee no chinese soldier can resist

 

[TaiShang]

chinese like to gamble as japanese men like to sniff womens dirty underpants. you can beat china easily in war by just creating as many casinos as you can in battlefields. i guarantee no chinese soldiers can resist

Let's hope people learned some lessons. Without getting one's hands dirty (well, mostly for regular folks), there is no free lunch. People start to realize that. I have been watching news all across the media and even the losers tend to accept they are somewhat carried away. This is a matter of personal control as well as regulations and oversight. Hopefully, with this experience, both will be placed rightly. Explosive development has never been steady; there will be ups and downs, as former WTO chair Leamy says.