Who is the idiot drawing China's fiscal and investment Policies?

[Bussard Ramjet]

Just recently China allowed its Pension funds to invest as much as 30% in equities to shore them up.

This is equivalent to gambling the future of the nation, and people's savings to shore up prices at a time when foreign investors and domestic investors are pricing out.


The whole stock market has been made a grand mess of in China.

 

[70U63]

Pension fund can invest for the domestic investors (indirectly, unless those investors don't have pension fund), so no issue here as everyone share the risk.

This is equivalent to gambling the future of the nation, and people's savings to shore up prices at a time when foreign investors and domestic investors are pricing out.

 

[Bussard Ramjet]

Pension fund can invest for the domestic investors (indirectly, unless those investors don't have pension fund), so no issue here as everyone share the risk.

But without telling people what you are doing with their money.

 

[Guynextdoor2]

Just recently China allowed its Pension funds to invest as much as 30% in equities to shore them up.

This is equivalent to gambling the future of the nation, and people's savings to shore up prices at a time when foreign investors and domestic investors are pricing out.


The whole stock market has been made a grand mess of in China.

The same is happening in India BTW.

 

[Bussard Ramjet]

@AndrewJin

Any comments on the Chinese stock market rout?

 

[S10]

The market value, despite the massive drop recently, is still 60% higher compared to previous year. Part of the bubble was deflated. Real estate sales have been sluggish for two years now, and I'm surprised it took this long for the market to deflate.

 

[Star Wars]

 

[cirr]

Just recently China allowed its Pension funds to invest as much as 30% in equities to shore them up.

This is equivalent to gambling the future of the nation, and people's savings to shore up prices at a time when foreign investors and domestic investors are pricing out.


The whole stock market has been made a grand mess of in China.

You sound desperate？

Pls take care of your own bloody mess first。

Or if you prefer，call it ”hitting where it hurts your enemy the most“

The US started it all back in 2007，and it is now China's turn。

When China sneezes，the world trembles。

 

[大汉奸柳传志]

Indians calling Chinese policy makers idiots？

FYI ideas from these policy making idiots worked so far for more than 30 years. what about their indian counterparts？

 

[kawaraj]

I heard in Chinese market the stocks are traded overnight settlement while the index future are traded instant settled.

I never heard such ridiculous market. It's made to benefit sophisicated or instutional trades and hurt small investors. This the battlefield to shift wealth from small investors to large institutions or investors.

Is that Idiotic enough?

 

[Keel]

The same indian and other et al are bashing China for a free-ride on easy learning
This time it is on Economics - 101 again

 

[TaiShang]

The only thing China needs to learn from an Indian is to not be like India.

That statement almost sums up PDF China&Far East section.

 

[Bussard Ramjet]

You sound desperate？

Pls take care of your own bloody mess first。

Or if you prefer，call it ”hitting where it hurts your enemy the most“

The US started it all back in 2007，and it is now China's turn。

When China sneezes，the world trembles。

Not trembles, but yes there is a lot of effect, after all it is the second largest economy.

Indians calling Chinese policy makers idiots？

FYI ideas from these policy making idiots worked so far for more than 30 years. what about their indian counterparts？

I am not calling ALL of them idiots.

If that is what it meant to you, I apologize.

What I am saying is that Chinese policy on stocks and Investments has been very very dubious, and it should have been seen.

And it is not only me, it is everyone, including your own government sources. There is news that after the markets stabilize, the whole regulatory team will be fired.

Indians calling Chinese policy makers idiots？

FYI ideas from these policy making idiots worked so far for more than 30 years. what about their indian counterparts？

Also, no doubt they have been successful in the past, but past success doesn't necessarily mean future success.


Japanese Policy makers were as respected as China's today, earlier in 1980s, but then they did pretty serious mistakes.

Overconfidence can lead one to do very big mistakes.

The only thing China needs to learn from an Indian is to not be like India.

Spoken like a true pathetic nutjob.

With no capability to engage in intellectual, objective discourse.

 

[Makaramarma]

The same is happening in India BTW.

In India they invest only up to 1% in equitym which can go up to 5% in the future.

Investing 30% to shore up a falling market is insanity.

 

[Bussard Ramjet]

See Let me summarize what China did wrong, and tell me what do you not agree on:


Right now market and investor confidence in China is very very high.

1. China starts encouraging stock entry. Campaigns for MSCI inclusion, and to get foreign funds in the market.

2. Chinese indices start roaring up.

3. They keep roaring up. Largely retail investors keep coming in, buying up. (Mistake 1)

4. On seeing, market grow so rapidly, more retail investors and other pile in. With no knowledge of markets, they start margin trading. (Mistake 2)

5. The markets reach sort of a peak. Intelligent investors start taking profits.

6. Then slowly more investors take profit, and stocks decline.

7. Panic strikes, and things turn ugly specially due to added burden of margin lending.

8. China then institutes many laws, like banning all big shareholders from selling their physical stake, arresting people spreading "rumors," starting buying up in own market to shore up shares. (Mistake 3)

9. But that is not enough, people especially retail investors keep selling their stuff. The above methods keep intensifying.

10. China starts further program to bring more funds like Pension funds in. (Mistake 4)

In the end, Chinese policy makers have lost quite a bit of their respect in the eyes of the world.

Ray Dalio is a billionaire investor, who was on record saying earlier that Chinese policy makers are very good and smart.

After the stock fiasco, he commented that perhaps Chinese were not that smart, and he overestimate them.


If any one knows anything about financial markets, then investor sentiment, and confidence are the biggest currencies, and China has lost some of it.