China Economy Forum

[William Hung]

When did i deny i didn't say that? Vietnamese or indian logic strikes again....

In the other thread you insist you can't remember that discussion. lol

anyway, Offtopic.

 

[bolo]

In the other thread you insist you can't remember that discussion. lol

anyway, Offtopic.

I just could not remember it when you mention it the first time because I do not care for PDF as much as some people. You are just putting more feces in your mouth.

Off topic.

 

[StarCraft_ZT]

BEIJING - China's stock market set a new world record for daily turnover on Friday, breaking a previous high reached only two days ago, as a boom trend that started in late November continued.

Combined daily turnover of the Shanghai and Shenzhen bourses totaled 1.07 trillion yuan (175 billion US dollars) on Friday, surpassing the previous record of 914.9 billion yuan on Wednesday.

Transactions on the two exchanges reached 639.19 billion yuan and 434.85 billion yuan respectively.

The record high turnover was reached amid rising shares on the A share market. The benchmark Shanghai Composite Index closed up 1.32 percent to finish at 2,937.65 points on Friday, and the Shenzhen Component Index closed at 10,067.28 points, up 0.37 percent.

Over 60 stocks on the two bourses surged by the daily limit of 10 percent on Friday.

Heavyweights lead rise

The remarkable performance of Chinese shares was mainly led by formerly quiet heavyweights, such as those in the banking and oil sectors.

China's four major banks jumped on Friday. China Construction Bank soared by the 10-percent daily limit to close at 5.7 yuan per share, while the Industrial and Commercial Bank of China finished at 4.59 yuan per share, up 7.49 percent.

Two oil giants, PetroChina and Sinopec, also witnessed strong growth amid a continued drop in oil prices in the international market, with their shares closing 9.88 percent and 4.96 percent higher, respectively.

Stock brokerages were winners in the bullish market, either hitting or approaching the daily changing limit.

Other sectors with strong performance included aviation, futures and the military and weapons industry.

However, majority shares of smaller companies lagged behind. Shares of 1,951 companies declined on Friday, over 75 percent of all companies listed on the A-share market.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, closed 2.46 percent lower on Friday.

Cut-triggered bull

Analysts believe recent interest rate cuts were the trigger for the booming market.

The People's Bank of China (PBOC), China's central bank, cut rates for deposits and lending on Nov. 21 for the first time in more than two years, followed by an increase in the Shanghai Composite Index of over 15 percent so far.

Qiu Yanying, investment director of China Fortune Securities, said the cuts signalled that the central government is resolved to stimulate growth, which brightened market expectations.

The rise was also helped by heavyweights and stock brokerages, the strong growth of which lured numerous individual investors into the capital market, Qiu said.

Yang Delong, analyst with China Southern Fund, noted policy makers' determination to reduce the cost of financing also reversed market sentiments, which were weighed down lately by relatively weak economic indicators.

"Both risk-free interest rates and risk premiums stayed on a downward streak after the cuts, which contributed to a hot A share market," Yang said.

China's economy expanded by 7.3 percent in the July-Sep. period, lower than the first two quarters. But the growth rate is expected to slightly recover in the fourth quarter due to reform dividends and pro-growth measures.

China's stock markets daily turnover hits 1t yuan - Business - Chinadaily.com.cn

 

[powastick]

High turnover is bad for stockmarket. It means too many speculation (hot money) churning rather than real investment. To me as a long term investor, i sell and avoid the stockmarket for months and will be my wait and see period.

 

[StarCraft_ZT]

Asian Shares Advance As Shanghai Trading Volumes Hit Record

By GREGOR STUART HUNTER
Updated Dec. 5, 2014 4:42 a.m. ET

Chinese trading volume hit a record level as the Shanghai Composite Index swung wildly before closing higher on Friday, while other Asian stock indexes made gains.

The Shanghai Composite veered between gains and losses on Friday as a recent rally survived a series of short-lived selloffs to cap a weekly gain of 9.5%. The value of shares traded in Shanghai hit a daily record of 639 billion yuan ($103.8 billion).

“Things have gone a little bit crazy in the market recently,” said Wilfred Sit, chief investment officer for Asia at Baring Asset Management, which has 36 billion euros in assets under management.

The index rose as much as 2.7% before plunging 3% in the space of 30 minutes in morning trading. The benchmark closed up 1.3% at 2,937.65.

“Looking ahead, we forecast the stock market to make more headway, but don't expect it to remain on a tear,” said Capital Economics in a research note. “If the recent signs of mania—such as the frenzied pace of new equity account openings—trigger a further substantial rally in the market, we would be surprised if it didn’t largely unwind further down the road.”

The Hang Seng China Enterprises Index, which tracks Hong Kong-listed stocks of mainland companies, rose 1% to 11,600.48, the highest level since February 2013. The broader Hang Seng Index rose 0.7% to 24,026.29.

The gains over the past month for the Chinese market, which have seen the Shanghai Composite turned from one of the region’s perennial laggards into the year’s best performer, may help lift investor confidence for the rest of the region, Mr. Sit added. “The sentiment is turning in China, I think it will uplift sentiment in Asia as a whole,” he said.

The Nikkei Stock Average reversed early losses to close up 0.2% at 17,920.45, with a six-day streak of gains putting the index at a seven-year high. The U.S. dollar, which rose above ¥120 for the first time since 2007 on Thursday, was last at ¥120.27.

Meanwhile, oil prices continued to fall after Saudi Arabia cut the price of crude sales to the U.S., sending Brent crude futures down 45 cents to $69.19 a barrel, the lowest in more than four years.

In Australia, stocks fell as resources companies declined before the release of U.S. jobs data. The S&P ASX 200 index was down 0.6% at 5,335.30. Elsewhere, South Korea’s KOSPI closed flat at 1,986.62.

http://online.wsj.com/articles/asia...0257638415083894258404580317770032914084.html

 

[Keel]

I heard it has set the record as the largest trading by volume of the world

But yes largest doesnt mean too much for serious investors

 

[TimeTraveller]

Congratulations To China....

 

[Keel]

This guy is happy with his make-shift "currency exchange" business and thinking " Holding RMB will get me rich hahaha! "
He has enough RMB stock on the table for a day's trade perhaps
It wise for him to hold a strong currency.

When did i deny i didn't say that? Vietnamese or indian logic strikes again....

indian logic

 

[ChineseTiger1986]

I am a Vietnamese?

According to the Vietnamese logic, all South Chinese are actually the brainwashed Vietnamese by the evil Han Empire.

 

[bolo]

According to the Vietnamese logic, all South Chinese are actually the brainwashed Vietnamese by the evil Han Empire.

Yes that is why so many Vietnamese cross over to China every year illegally and don't ever want to go back to Vietnam. I know they're trolling, but there's smart trolls like Gambit and the rest like Eastsea and Black flag. My advice to these other Viet trolls-- Try harder--

 

[ChineseTiger1986]

Yes that is why so many Vietnamese cross over to China every year illegally and don't ever want to go back to Vietnam. I know they're trolling, but there's smart trolls like Gambit and the rest like Eastsea and Black flag. My advice to these other Viet trolls-- Try harder--

They can keep trolling on the Internet all they want, but the reality remains unchanged.

China will keep growing stronger than ever, whereas Vietnam will always be a peanut compared to the mighty giant from its northern border.

 

[EastSea]

A man provides private forex trading at the China-Vietnam border, May 15. (Photo/CNS)

China has opened a currency trading center on the border with Vietnam, the first of its kind in the country that has effectively reduced rampant and illegal private foreign exchange trading there, Shanghai's China Business News reports.

In Vietnam, it requires tens of thousands of Chinese yuan to obtain the government's approval for the establishment of a bank, the main reason behind the rampant illegal private forex trading at the border, according to the report.

Before 2009, exchanges between the two currencies had to be conducted via US dollars in local banks, contributing to the rise of "bank stalls" that provided the illegal service of direct exchanges between the Chinese yuan and the Vietnamese dong in the cross-border region.

Merchants in Dongxing in southern China's Guangxi Zhuang autonomous region near the border with Vietnam had to conduct currency conversions through such "bank stalls," where there could a huge difference currency exchange rates from one stall to the next, the report said.

Since there was no official exchange rate from yuan to dong, the market price was determined by local "bank stalls" and the conversion process was simple and underdeveloped.

Since China established a currency trading center on the China-Vietnam border in April though, the situation of rampant illegal private currency trading has improved significantly.

The ASEAN (Association of Southeast Asian Nations) Currency Business Center, initiated by the Agricultural Bank of China in Dongxing, allows direct convertibility of yuan and dong by both individuals and companies.

China was Vietnam's largest trade partner in 2013 with its total turnover reaching US$50 billion, up 22% year-on-year, according to Vietnam customs authorities.

In 2013, Vietnam spent US$ 37 billion on imports from China, up 28.4%, while it exported US$ 13 billion worth of goods to China, up 7% year-on-year.

After it began promoting the yuan's globalization in 2009, China launched a series of programs to promote usage. These included a pilot program to expand the investment quota under its renminbi qualified foreign institutional investors (RQFII) that allows foreign investors access to stocks traded on China's mainland. They also liberalized the yuan's capital account in Shanghai's free trade zone.

The government has also launched a pilot scheme to boost the cross-border use of yuan and a scheme to connect the Shanghai stock exchange to its counterpart in Hong Kong, among others.

it financed for smugglers in border of two country. we cannot collect import tax from such consumer goods.

 

[longyi]

Time for us Asians to pick up our prides. What kind of nonsense is that China and Vietnam, neighbors for tens of thousands of years, have to use the American dollar as middle man to exchange their respective currencies (as mentioned in the OP's article).

If Vietnam doesn't make a deal with China on currency swaps she'll forever indirectly controlled by the west financially. If she joins, at the least, she has one more alternative when the big SANCTION comes down hard on her from either side (see Russia).

 

[TaiShang]

Time for us Asians to pick up our prides. What kind of nonsense is that China and Vietnam, neighbors for tens of thousands of years, have to use the American dollar as middle man to exchange their respective currencies (as mentioned in the OP's article).

If Vietnam doesn't make a deal with China on currency swaps she'll forever indirectly controlled by the west financially. If she joins, at the least, she has one more alternative when the big SANCTION comes down hard on her from either side (see Russia).

I agree. China's neighbors should show some political willingness. China has little to do when its neighbors are unwilling at least.

 

[xesy]

Funny how a currency post turned into a VN bashing one. Most of you guys don't live near the border so you both Chinese and Vnese have little ideas how people there react to the tension. Aside from the military and police personels, normal people feel pretty normal about it. With or without a govt supporting exchange center, there are plenty of ways in the market to exchange VND and RMB directly. Some VNese shops even accept RMB as payment. Sirs, all you guys can go on and on bragging about politics and stuffs, we still feel pretty convenient for common folks living in the VN-China border to have such exchange center.