China’s stock-market crash is just beginning
(MarketWatch) Since the Shanghai Composite index dropped from a 52-week high around 5,178 on June 12, it’s been downhill all the way.
In just three weeks, stocks listed on mainland China’s most prominent exchange tumbled 30% from their seven-year highs. The even more speculative ChiNext Index has lost 42% of its value over 21 days.
Investors and traders who piled into Chinese shares over the past year, causing Shanghai to rise 150% and other markets to catapult even more dramatically, faced margin calls on their highly leveraged positions and started selling with both hands and both feet.
It was the biggest rout in this volatile market since 1992, and it prompted the Chinese government to take strong measures.
Last week, the Bank of China cut short-term interest rates for the fourth time this year. Regulators relaxed margin requirements and cracked down on short sellers, while state-run media tried to calm jittery investors with happy talk. That did little to stanch the hemorrhage. .....................(more)
http://www.marketwatch.com/story/chinas-stock-market-crash-is-just-beginning-2015-07-08?dist=tbeforebell
= new reply since forum marked as read
U.S.-traded Chinese stocks plunged the most in four years as the rout that’s wiped $3.2 trillion from the value of mainland equities spreads.
Chinese American depositary receipts tumbled 5.1 percent as of 12:42 p.m. in New York, extending their slump to 18 percent from this year’s high. Alibaba Group Holding Ltd. tumbled to the lowest since its initial public offering, while JD.com Inc. sank as much as 12 percent.
“Investors are fleeing anything associated with China,” Brendan Ahern, chief investment officer at Krane Fund Advisors LLC in New York, said by phone on Tuesday. “They don’t want to have anything related to China in their portfolio. Investors are reading the risks around China, and there is a spillover effect in the U.S.-listed stocks.”
Stocks fell in the U.S. after the Shanghai Composite Index sank for the fourth time in five days as government measures to stabilize mainland markets failed to stop a retail investor selling spree. Even after the median price-to-earnings ratio in China dropped to 55 from 108 at the height of the rally in June, valuations are more than twice as high as those on the Standard & Poor’s 500 Index.
http://www.bloomberg.com/news/articles/2015-07-08/china-trading-halts-leave-43-of-entire-stock-market-frozen?cmpid=yhoo
Just a bit scarey for me! No thanks Wall Street casino.
Don't fool yourself, there have been some huge losses already since mid-June.
Not good, not good at all!
