Chinese Stock Markets Are in the Middle of an ‘Unprecedented’ Slide

[tranquilium]

I hope USA is not doing the same what they did to USSR. Growing China is fine to them but not threatening China

You do, of course, realize that the main reasons for USSR disintegration is because 1. USSR spent about 20% of its GDP on an arm race 2. USSR leadership screwed up its economic reforms? In comparison, China spent about 1.4% of its GDP on military and has one of the best economic performance in the world. Frankly, in the present world, for military spending to collapse the country, nations like USA, India and Vietnam is a lot more likely to go before China. In fact, the only country that is large enough to matter and spend less military budget per GDP is Japan.

You do, of course, also realize that by the end of the cold war, USA's own economy is strained heavily and it only got through because USSR buckled first.

The current Chinese-USA situation is nothing like the cold war scenario and China is nothing like the USSR.

 

[Emilly David]

Chinese econmomy is a bubble which was going to burst out. This is just a start. If you talk about debt (including everyting) then it is more than Greece.

 

[tranquilium]

Chinese econmomy is a bubble which was going to burst out. This is just a start. If you talk about debt (including everyting) then it is more than Greece.

Please, if you talk about "debt (including everything)", USA and Greece both have way more than China. I don't why people would compare "all debts" in China with only public debt of USA or Greece and then manage to say China is more in debt with a straight face. Shouldn't even an elementary school child know that you are suppose to compare the same thing?

 

[Providence]

Chinese econmomy is a bubble which was going to burst out. This is just a start. If you talk about debt (including everyting) then it is more than Greece.

Are you talking from your extensive experience ? or the unparalleled expertise which you have that you summarised a 10 trillion worth economy in one single sentence ?

Preventing people from jumping off balconies due to stock market losses.

What ? That's crazy. I know the stocks got hammered like sh!t but taking your life as repentance is down right retarded.

 

[Matrixx]

You do, of course, realize that the main reasons for USSR disintegration is because 1. USSR spent about 20% of its GDP on an arm race 2. USSR leadership screwed up its economic reforms? In comparison, China spent about 1.4% of its GDP on military and has one of the best economic performance in the world. Frankly, in the present world, for military spending to collapse the country, nations like USA, India and Vietnam is a lot more likely to go before China. In fact, the only country that is large enough to matter and spend less military budget per GDP is Japan.

You do, of course, also realize that by the end of the cold war, USA's own economy is strained heavily and it only got through because USSR buckled first.

The current Chinese-USA situation is nothing like the cold war scenario and China is nothing like the USSR.

You are right but most of the US company invested in China so US may have some kind of control over Chinese economy...BTW India spend only 2 % of its GDP on military.....

 

[tranquilium]

You are right but most of the US company invested in China so US may have some kind of control over Chinese economy...BTW India spend only 2 % of its GDP on military.....

Erm, no. US investor's main investment targets are Mexico, Canada, then Europe, South America. Also, FDI accounts for about 5% of the fixed assets of in China and among that 5%, most comes from Hong Kong, Taiwan, Japan, Europe.

If you think about it, instead of taking the stereotype, It makes sense. A country is always more likely to invest close to its native region because not only their country has more influence in the area, the other associate costs, such as transportation, is also lower. Historically, China also doesn't get along that well with US and the feeling is mutual. So it would be strange if either China or US pick the other one as their main investment target.

Now, both China and US have large markets, hence it can potentially attract more investment simply because it is larger than some of the closer, but smaller markets. This is also why Europe as whole is a good investment target for China and US, because it is both large enough and doesn't really have any political conflicts with either China or US.

 

[Hamartia Antidote]

What ? That's crazy. I know the stocks got hammered like sh!t but taking your life as repentance is down right retarded.

It happens...things get out of control when people see money...people fully leverage 10% margin, toss in all their savings, take out loans at x% figuring the market can easily give them x% + y%, use their home as collateral. Then the worst happens.

 

[Götterdämmerung]

What you are talking about is currency which is not same as worth. Currency is just one-form of representation of worth.

When you lose money, it means the worth has been diminished. Doesn't mean someone flicked it.

What matters is that the share is measured in currency. When you lose money is somebody else's gain, the one who sold you an overvalued share, products (you name it). And it's also very likely that the same person who sold you the shares will buy up the shares that you sell in panic to avoid further loss for a penny and dime and bamboozles you twice.

 

[Emilly David]

Are you talking from your extensive experience ? or the unparalleled expertise which you have that you summarised a 10 trillion worth economy in one single sentence ?



What ? That's crazy. I know the stocks got hammered like sh!t but taking your life as repentance is down right retarded.

Obviously my experience. The China stock market is turning out to be a fraud. Prices of equities are completely manipulated by the government and the ultimate grease comes from government approved rising margin levels (you can use your house as of last week) and direct government-ordered buying. Many IPO' are occuring....so the debt/margin driven investments go to the IPO's at inflated prices just to pay off other debt. Not my kind of market.China cannot let go of its totalitarian nature and their market is a cr@p shoot.I think there is a lack of understanding of what a "stock market" actually is on the part of Chinese authorities. See, there are these things called valuation models that are based on discounting the expected future cash flows to arrive at the intrinsic value of the company. Infusing capital into the market for no reason won't change any inputs into the model - the companies' cash flows, growth rates, or discount rates. If the index is worth 3000 then no amount of capital infusion will change that.

 

[Aepsilons]

It happens...things get out of control when people see money...people fully leverage 10% margin, toss in all their savings, take out loans at x% figuring the market can easily give them x% + y%, use their home as collateral. Then the worst happens.

Very sobering. I hope that it won't be as severe as reports are saying.

 

[Emilly David]

@FaujHistorian Sir your view on this.

 

[FaujHistorian]

And I was crying for loosing $700 dollars in stock market.

Bhai jaan

you are obviously "small fry" hahahah.

Sorry you lost $700

@FaujHistorian Sir your view on this.

It is terrible in the short run.

But then my view of stock market is long term. Like 7-10 years cycle.

 

[Emilly David]

Bhai jaan

you are obviously "small fry" hahahah.

Sorry you lost $700


It is terrible in the short run.

But then my view of stock market is long term. Like 7-10 years cycle.

7-10 years in stock ?? Whoever is going to put his money in Chinese stock market is going to bankrupt for sure

 

[Aepsilons]

7-10 years in stock ?? Whoever is going to put his money in Chinese stock market is going to bankrupt for sure

Pessimistic much?

 

[Emilly David]

Pessimistic much?

Studying market from last 6 years and I give couple of hours daily to explore about it. I know when and where to put my money Just stating the facts,