China Halts Trading After Market Tumbles More Than 7 Percent

[Economic superpower]

what is interest rate for debt fund presently in china ?

4.3% I think.

 

[naveen mishra]

4.3% I think.

very less ,this may be one of reason people find more attractive treading market ,and takings more risk

but you may have more advantage in home loan, i guess it should be less than 4.3 %

 

[C130]

from boom to bust

spend a decade plus of building and building just to keep growth going. when are they finally going to move their middle income citizens into these ghost cities


the only thing that will save China is domestic consumption and not export driven economy, but is China ready for that transition??

 

[Economic superpower]

a proper stock market. you do know other markets have crashed plenty of times. this China's first taste of it


instead of letting it hit rock bottom China keeps trying to save it with half measures that will just push the problem down the road a few months.

reward and risk you know

Here is how I see it.

China's property market has been in a downturn which is very closely linked to the performance of major state-owned companies like banks, steel, coal, glass, aluminium, etc. So to bail out these state-owned companies due to losses from property downturn and export market downturn, they need cheap funding. That's where the stock market comes in.

China wants the stock market to go up so that poorly performing state-owned companies are bailed out by getting easy finding in the stock market which relieves their burden.

Chinese private companies are doing pretty well, but state-owned companies are facing major problems.

Last I checked, profits of private companies were UP 6-7% in 2015. Profits of state-owned companies were DOWN 25% in 2015.

This is why China is desperate to see the stock market go up because state-owned companies make up a significant portion of the Chinese stock market. So the biggest beneficiary of a strong stock market are the state-owned companies.

China needs to reform the state-owned companies by allowing M&A and selling some of their assets to private Chinese companies.

 

[C130]

Here is how I see it.

China's property market has been in a downturn which is very closely linked to the performance of major state-owned companies like banks, steel, coal, glass, aluminium, etc. So to bail out these state-owned companies due to losses from property downturn and export market downturn, they need cheap funding. That's where the stock market comes in.

China wants the stock market to go up so that poorly performing state-owned companies are bailed out by getting easy finding in the stock market which relieves their burden.

Chinese private companies are doing pretty well, but state-owned companies are facing major problems.

Last I checked, profits of private companies were UP 6-7% in 2015. Profits of state-owned companies were DOWN 25% in 2015.

This is why China is desperate to see the stock market go up because state-owned companies make up a significant portion of the Chinese stock market. So the biggest beneficiary of a strong stock market are the state-owned companies.

China needs to reform the state-owned companies by allowing M&A and selling some of their assets to private Chinese companies.

interesting you want to take away from the state and give to private companies.


time to shed what communism you all got left. if you would follow the system of Taiwan,South Korea, and Singapore you would be miles further along the capitalist road.

 

[Economic superpower]

interesting you want to take away from the state and give to private companies.


time to shed what communism you all got left. if you would follow the system of Taiwan,South Korea, and Singapore you would be miles further along the capitalist road.

CPC is realising that non-strategic sectors need to go private.

Only strategic sectors need to have state control.

 

[C130]

CPC is realising that non-strategic sectors need to go private.

Only strategic sectors need to have state control.

the one party system in china seems to be doing good. I couldn't imagine China giving the people the option of voting for a President like the states.

what strategic sectors do you mean?

 

[lightoftruth]

World Bank sees global growth sputtering along amid China slump - Livemint

World Bank Again Cuts Global Growth Forecasts - WSJ

 

[Ankit Kumar]

Just wanted to know that is it in China or all over the world that the stock markets are closed if it falls 7% in a day?

 

[Keel]

Nope this time it is started by Chinese market. Japan showed some improvement so it is not the cause for this slump.

There are many reason for this fall, one was mentioned by @Economic superpower , the chinese investor are too naive, they should invest for long time with some logic.

It was started and compounded by many things
The Chinese stock market and investors sentiments are just some of those
I have mentioned the issues at one time or another in these 2 days somewhere on the forum

It is evident that China's impact on the world is getting stronger each passing year. Do you want it to collapse?

The effect of the US sub-prime mortgage crisis which led the world into financial disasters has just barely done and dusted. During that time who have been the "bankers" so to speak for the usa? Where are the tourists from spending crazily in Japan and elsewhere in the world helping their tourism industries? Who are the biggest overseas investors in real estate? Which nation is among those doing much of the M and A in the world these days saving their own companies and people from liquidations and unemployment? Who has been driving the world's economies steering them away from further harm? Whose currency has resisted the fogging wholesome QEs that flooded the world with cheap paper money and it stayed in position until a small step devalustion of just 3% not too long ago? Which country has been helping the world to buck against inflation with generous supply of affordable and reasonable quality products during the last 3 decades thereby maintaining their quality of lives?

And for the Indian members please answer the question on who are the NRIs? who have been sending money to save your government's chronic C/A and budget deficits and the dropping rupees? Where do the NRIs get their money from? What measures have the indian government adopted in the past so as to prevent the INR from sliding into the abyss, time and again?

Hurting us you are hurting yourselves too!

.

 

[C130]

It was started and compounded by many things
The Chinese stock market and investors sentiments are just some of those
I have mentioned the issues at one time or another in these 2 days somewhere on the forum

It is evident that China's impact on the world is getting stronger each passing year. Do you want it to collapse?

The effect of the US sub-prime mortgage crisis which led the world into financial disasters has just barely done and dusted. During that time who have been the "bankers" so to speak for the usa? Where are the tourists from spending crazily in Japan and elsewhere in the world helping their tourism industries? Who are the biggest overseas investors in real estate? Which nation is among those doing much of the M and A in the world these days? Who has been driving the world's economies steering them away from further harm? Whose currency has resisted the fogging wholesome QEs that flooded the world with cheap paper money and it stayed in position until a small step devalustion of just 3% not too long ago? Which country has been helping the world to buck against inflation with generous supply of affordable and reasonable quality products during the last 3 decades?

Hurting us you are hurting yourselves too!

.

both China and U.S fail. it really doesn't matter which one fails first which causes the other fail. Just that it will happen it's inevitable. you can only hold if off buy creating more debt. It's a giant ponzi scheme. both are two too big fail along with the EU.

the next depression is around the corner and I don't think this generation of humans can handle it.

 

[Jlaw]

China should shut down its stock market for about 1 year until it becomes a proper stock market. This is not a stock market. 90% are old people pretending to be investors.

Chinese stock market has become a national embarrassment. Every few weeks this thing crashes like 20% in 1 week. Then goes up again 15% the next week. Then crashes again. It's worse than a casino.

Shameful. The regulators should be arrested for their incompetence.

People say Chinese stock market is not representative of the real economy but when it crashes every few weeks it further damages China's economic and financial reputation and shows the regulators have absolutely no idea what the hell they are doing. People won't even buy the renminbi as Chinese financial markets are incredibly volatile.

3% movement is considered massive.

it's a simple fix. JP Morgan and his friends did it in 1929. The Chinese gov't just need to purchase the good falling stocks, hold it to stabilize the price. Than over one year increase the price of the stocks they hold. US govt does this today. By this time you will eliminated all the old people from the market as they will be sorry they sold for no valid reason than just gambling. You will hear a big "Aiyahh!" from them but that's ok.

I think you are aware the stock markets are manipulated, right?

 

[Viper0011.]

it's a simple fix. JP Morgan and his friends did it in 1929. The Chinese gov't just need to purchase the good falling stocks, hold it to stabilize the price. Than over one year increase the price of the stocks they hold. US govt does this today. By this time you will eliminated all the old people from the market as they will be sorry they sold for no valid reason than just gambling. You will hear a big "Aiyahh!" from them but that's ok.

I think you are aware the stock markets are manipulated, right?

Stock markets run on news and market health. The Chinese market health sucks at this time to say the least. The last sentence about "markets are manipulated", you are absolutely wrong. The only manipulation was in the Chinese currency!! It was previously stopped due to G-20 and US's push. But then, they were let lose, and here are the results, the debt has come out to be a monster and has impacts all across the globe!!

China is world's number two economy, and if you think your leaders can be irresponsible in running your economy and it won't cause the entire world to feel the heat, I don't know how to teach you economy 101!!

The Yuan, as of yesterday, has hit the lowest since 2011!! There was another devaluation again yesterday. So if you want to blame elsewhere for an INTERNAL Chinese economy management issue, tough luck. The world is suffering right now because of what's happening within the Chinese economy. Not manipulation being done elsewhere. Its very easy to point fingers on "Ghosts" for your problems. Its hard to understand "how the hell did China accumulate SO MUCH DEBT"? and is now devaluating Yuan like kids keep eating Candy!!

 

[Audio]

Here is how I see it.

China's property market has been in a downturn which is very closely linked to the performance of major state-owned companies like banks, steel, coal, glass, aluminium, etc. So to bail out these state-owned companies due to losses from property downturn and export market downturn, they need cheap funding. That's where the stock market comes in.

China wants the stock market to go up so that poorly performing state-owned companies are bailed out by getting easy finding in the stock market which relieves their burden.

Chinese private companies are doing pretty well, but state-owned companies are facing major problems.

Last I checked, profits of private companies were UP 6-7% in 2015. Profits of state-owned companies were DOWN 25% in 2015.

This is why China is desperate to see the stock market go up because state-owned companies make up a significant portion of the Chinese stock market. So the biggest beneficiary of a strong stock market are the state-owned companies.

China needs to reform the state-owned companies by allowing M&A and selling some of their assets to private Chinese companies.

Additionally, while i aplaud the sincerity of the post, so rare from others on this particular subject, state owned enterprises are also saddled up with most debt.

 

[Jlaw]

Stock markets run on news and market health. The Chinese market health sucks at time to say the least. The last sentence about "markets are manipulated", you are absolutely wrong. The only manipulation was in the Chinese currency!! Its stopped due to G-20 and US's push, and here are the results, the debt has come out to be a monster and has impacts all across the globe!!

China is world's number two economy, and if you think your leaders can be irresponsible in running your economy and it won't cause the entire world to feel the heat, I don't know how to teach you economy 101!!

The Yuan, as of yesterday, has hit the lowest since 2011!! There was another devaluation again yesterday. So if you want to blame elsewhere for an INTERNAL Chinese economy management issue, tough luck. The world is suffering right now because of what's happening within the Chinese economy. Not manipulation being done elsewhere. Its very easy to point fingers on "Ghosts" for your problems. Its hard to understand "how the hell did China accumulate SO MUCH DEBT"? and is now devaluating Yuan like kids keep eating Candy!!

You obviously don't know what the **** you're talking about. Go get an education and stop wasting my time

go troll in the Indian forum--something you're good at