Government cannot be market’s babysitter

[AndrewJin]

i've been investing in stock markets since 2000, learned some hard lessons but after four years start making consistent returns. All my friends not in market anymore because they all got slaughtered in 2000 tech bust, 2001 9/11, and 2008 financial crisis.

good for you that you sold it before this.

They stepped in at the wrong timing. I bought my shares at 10yuan, sold at 33yuan(highest at 35). Now it's 20yuan. Most people buy at 20-30yuan, no doubt they lost.

 

[Economic superpower]

Chinese stock market is massive but highly underdeveloped due to government interference. 90% of the Chinese stock market is retail investors. This is because of excessive regulation on institutional investors and all kinds of unnecessary regulations.

Biggest problem with the Chinese economy as a whole is the large amount of government interference.

 

[Jlaw]

Chinese stock market is massive but highly underdeveloped due to government interference. 90% of the Chinese stock market is retail investors. This is because of excessive regulation on institutional investors and all kinds of unnecessary regulations.

Biggest problem with the Chinese economy as a whole is the large amount of government interference.

what type of interference? Even US markets have a lot of government interference. Without gov't interference it would been worse. Look at great depression of 1929 US. No govt intervention. Look what happened.

 

[Economic superpower]

what type of interference? Even US markets have a lot of government interference. Without gov't interference it would been worse. Look at great depression of 1929 US. No govt intervention. Look what happened.

Compared to other countries, the US market is free.

China has too much interference in everything from stock market to economy. This creates distortions which has resulted in overcapacity and underdeveloped stock market.

 

[TaiShang]

They stepped in at the wrong timing. I bought my shares at 10yuan, sold at 33yuan(highest at 35). Now it's 20yuan. Most people buy at 20-30yuan, no doubt they lost.

I think because most of these small investors had very little knowledge/insight of the inner workings of stock market. They have way too much savings and interest rates apparently did not entice them well enough.

One way for future could be collective (holding) investments in real business -- like coming together and setting up a small company and do real business.

That's a hard lesson but hopefully people will act more wisely from now on.

 

[Jlaw]

I think because most of these small investors had very little knowledge/insight of the inner workings of stock market. They have way too much savings and interest rates apparently did not entice them well enough.

One way for future could be collective (holding) investments in real business -- like coming together and setting up a small company and do real business.

That's a hard lesson but hopefully people will act more wisely from now on.

Or just buy hard assets like gold coins/ bars. Those always have value.

 

[ChineseTiger1986]

what type of interference? Even US markets have a lot of government interference. Without gov't interference it would been worse. Look at great depression of 1929 US. No govt intervention. Look what happened.

The market always needs to be babysitted, and the Reaganomics won't work.

After this, the Chinese government will strengthen the financial supervision.

Now no one trusts those liberal economists anymore.

 

[Jlaw]

The market always needs to be babysitted, and the Reaganomics won't work.

After this, the Chinese government will strengthen the financial supervision.

Now no one trusts those liberal economists anymore.

contrary to what most people think, It's because of government interference in stock markets that result in a better environment. The US, Canada, EU have strong government regulations and will interject at anytime should needed. China doesn't have as much market interference thus something like this will happen more in the future.

 

[ChineseTiger1986]

contrary to what most people think, It's because of government interference in stock markets that result in a better environment. The US, Canada, EU have strong government regulations and will interject at anytime should needed. China doesn't have as much market interference thus something like this will happen more in the future.

I think the crash of the stock market is a good sign for the long term.

If everyone can become millionaire by gambling at the stock market, then who is going to work hard?

Only the manufacturing is the truly tangibility for the economic growth, while the rests are just fishy.

China needs to focus on manufacturing, that's really matter to us the most.

"Made in China 2025" plan unveiled to boost manufacturing
- Xinhua | English.news.cn

 

[Jlaw]

I think the crash of the stock market is a good sign for the long term.

If everyone can become millionaire by gambling at the stock market, then who is going to work hard?

Only the manufacturing is the truly tangibility for the economic growth, while the rests are just fishy.

China needs to focus on manufacturing, that's really matter to us the most.

"Made in China 2025" plwihan unveiled to boost manufacturing
- Xinhua | English.news.cn

I've always discouraged people i know from entering the market because it is a gamble. Even professionals lose out. During 2008, most of the hedge fund managers got slaughtered. But the worse part was older people losing their entire retiring savings on the market in 2008. The worse thing was , if they had not sold they would have made money six months after that. Many had to because they borrowed on margin.

 

[ChineseTiger1986]

I've always discouraged people i know from entering the market because it is a gamble. Even professionals lose out. During 2008, most of the hedge fund managers got slaughtered. But the worse part was older people losing their entire retiring savings on the market in 2008. The worse thing was , if they had not sold they would have made money six months after that. Many had to because they borrowed on margin.

I think this event will be a huge blow to the liberal economists in China.

In the recent years, China has also been plagued by the de-manufacturization, but this finance bubble just blow up too earlier, so it allows to people to wake up earlier as well.

Now, the primary task for China is to move up its manufacturing base towards the high end, and forget about the stock market gamble.

 

[Hamartia Antidote]

This crazy trend should be stopped, even the doorman of my apartment has bought some.

Chinese Stock Markets Are in the Middle of an ‘Unprecedented’ Slide | Page 5

Words of wisdom by Joe Kennedy.

 

[TaiShang]

Now, the primary task for China is to move up its manufacturing base towards the high end, and forget about the stock market gamble.

The drop has been a constructive wake up call for many dreamy stock experts, hopefully. And yes, the losers should not be babysit, but, the market should be further regulated: Liberated for greater insight and regulated for greater public control and oversight.

 

[TaiShang]

China stocks open up more than 7% Monday
July 6, 2015

Chinese stocks opened higher on Monday, with the benchmark Shanghai Composite Index up 7.82 percent to open at 3,975.21.

The Shenzhen Component Index opened 7.30 percent higher at 13,140.14.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, opened 7.31 percent higher at 2,795.67 points.

 

[Aepsilons]

Chinese Stock Markets Are in the Middle of an ‘Unprecedented’ Slide | Page 5

Words of wisdom by Joe Kennedy.

lol