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

[Economic superpower]

No, that's not the translation.

What is says is, a statement from a Chinese regulatory commission denying any foreign short selling has to do with this....stock market tumble. On the other hand, there's a herd of 90 million fresh investors as of late in China.

Goldman is ALWAYS involved. They are denying for diplomatic reasons.

 

[Jlaw]

This is a very interesting paradigm for investors. Worrying definitely. @LeveragedBuyout @Shotgunner51 @cnleio @Edison Chen --- Gentlemen, id like to hear your conjecture on this.

Do you invest in US market? Wasn't it a great opportunity back in 2001 and 2008? All the doom and gloom people started to doubt the market. Well the Dow is hovering around 18000 much higher than 2008.

 

[Audio]

Goldman is ALWAYS involved.

While that may be true, i doubt that's the catalyst of this.

 

[ito]

List of asset management firms - Wikipedia, the free encyclopedia

Are you saying Blackrock cannot short sell and do the work of Washington to hurt China?

Blackrock is a very big group. They have 100's of funds under their management. If any fund by Blackrock is built with private money, they can do short selling or for that matter they can use any risky investment strategy.

 

[Economic superpower]

While that may be true, i doubt that's the catalyst of this.

Washington using its big financial boys to hurt China.

 

[Aepsilons]

Goldman is ALWAYS involved. They are denying for diplomatic reasons.

Good to see you got your flags changed.

 

[Edison Chen]

Stop joking with me mate.



传高盛南方基金裸空股指引股灾 南方否认传闻|股指期货|A股市场|基金_新浪财经_新浪网

What does it say? Tell us.

Some investment bank and fund management company, like China Southern Fund Management and Goldman Sachs is shorting stock index these days. They were doing naked shorting selling, which means they sell nonexistent stocks, when the index fell to a certain low point level, they buy in again. This is very risky and will cause unexpected turbulence to China's A Share Market. Actually, as far as I know, there are more institutions doing this. SSE Composite has fell by 20% in a single week due to short selling, and the short selling is due to the consistent bullish Chinese A Share Market since late 2014, many CEOs and big shareholders were cashing out, since their earnings could reach more than 100%. So this is one reason that the institutions do the short selling.

 

[Aepsilons]

Some investment bank and fund management company, like China Southern Fund Management and Goldman Sachs is shorting stock index these days. They were doing naked shorting selling, which means they sell nonexistent stocks, when the index fell to a certain low point level, they buy in again. This is very risky and will cause unexpected turbulence to China's A Share Market. Actually, as far as I know, there are more institutions doing this. SSE Composite has fell by 20% in a single week due to short selling, and the short selling is due to the consistent bullish Chinese A Share Market since late 2014, many CEOs and big shareholders were cashing out, since their earnings could reach more than 100%. So this is one reason that the institutions do the short selling.

Are there any policies, specific corporate law aspects that prevent short selling? This is something that should be addressed....

 

[Jlaw]

@AndrewJin @TaiShang

start to buy once this end and you see it trending up. Hope you took some profits

 

[Shoonya]

Western short sellers fault.

Big Western banks involved.

Chinese regulators were blind to not see this.

Still, the stock market cap of China is $7 trillion. Still the 2nd largest in the world despite losing nearly $3 trillion in 3 weeks.

This is a coordinated move by Western governments and Western banks and Western asset management companies to destabilise the Chinese economy by destabilising the Chinese financial system. Just like they did to Russia. Because Russia and China are getting close and China is humiliating the US in the SCS.

There is massive short selling going (especially on Wednesday in the last hour) by the big Western banks like Goldman Sachs and other big Western hedge funds and mutual funds.

This is not just an ordinary stock market crash, this is a Western attack on the Chinese financial system.

China's stock market is more than double the entire Indian stock market even with $3 trillion lost

This is an attack on China by the West using their powerful assets management companies and big banks to punish China for the SCS construction and helping Russia.

Short selling can be done by anyone. The more money you have, the bigger bets you can make.
The West always use their big banks to do their dirty work. Big banks and big Western asset management companies and big investors like Soros are involved.

This is to destabilise China for supporting Russia economically.

West using its financial power to hurt China for helping Russia.

Goldman is always involved. Always doing Washington's dirty work.
Innocent Chinese investors have lost a lot of money due to China supporting Russia.

Who was supporting your Markets when it has risen from 2000 to 5000 in 12 months in spite of Chinese economy in Downturn ???

Western FII has artificially jacked up your stock markets to EXIT, if you can not understand the rules of the game then it is better to avoid Stock Markets

 

[LeveragedBuyout]

This is a very interesting paradigm for investors. Worrying definitely. @LeveragedBuyout @Shotgunner51 @cnleio @Edison Chen --- Gentlemen, id like to hear your conjecture on this.

This is the result of several factors:

-poor accounting standards (fraud)

-poor regulation (fraud, allowing investors to take risks unsuitable for their risk profile)

-excessive leverage (unprecedented levels of margin as a percent of float, and now putting up houses as collateral, dear G-d)

-lack of market depth (contrary to the propaganda, due to capital controls and misguided nationalism, foreign qualified investors are insignificant participants, and local institutional investors comprise too small a percent of ownership)

-incompetent economic leadership by the CCP (China was supposed to move away from debt-funded investment after the real estate market fell, but instead of encouraging consumption, the leadership has chosen the quick fix of inflating a different asset bubble--stocks, and China is suffering the same outcome that the US did in solving its dot-com bust by inflating the real estate bubble, only in reverse)

-that bit by the propagandist telling the huddled masses to invest even if they lose every penny is absolute insanity. The CCP's legitimacy since Tiananmen rests on prosperity for the people, not national glory. If the CCP is seen as destroying the populace's life savings, we will see many more "mass events" going forward.

The market will eventually recover from this, but I have to admit that I am increasingly disillusioned with the Xi/Keqiang economic management decisions. A lot of talk of reform, not nearly enough action.

 

[Edison Chen]

其实现在基本面并不好，很多上市公司没有业绩支撑，改革的政策诸如一带一路，亚投行，国企改革等并未开始显现出来效果，此轮牛市更多体现的是政府的态度，基本都是靠两融和场外配资实现的，很难持久。

Are there any policies, specific corporate law aspects that prevent short selling? This is something that should be addressed....

Good question....Today's situation, to some extent, is exactly caused by improper regulation by CSRC.

When SSE composite reached from 2000 to 5000, those regulators start to clean and stop excessive capital flow-in, which cause the fund chain broken, and fear among individual investors.

 

[Audio]

Some investment bank and fund management company, like China Southern Fund Management and Goldman Sachs is shorting stock index these days. They were doing naked shorting selling, which means they sell nonexistent stocks, when the index fell to a certain low point level, they buy in again. This is very risky and will cause unexpected turbulence to China's A Share Market. Actually, as far as I know, there are more institutions doing this. SSE Composite has fell by 20% in a single week due to short selling, and the short selling is due to the consistent bullish Chinese A Share Market since late 2014, many CEOs and big shareholders were cashing out, since their earnings could reach more than 100%. So this is one reason that the institutions do the short selling.

I see, auto translation from Chinese is horrible..., i have a question though, who buys non existant shares?
How do you buy non existant shares? I mean this is implying someone pulled a number on you, completely lied to you and you still intrusted him with your money without doing your homework of inspecting what it is that you're buying.

 

[Edison Chen]

I see, auto translation from Chinese is horrible..., i have a question though, who buys non existant shares?

In China financial institutions do this.

The Truth About Naked Short Selling

 

[Audio]

Are there any policies, specific corporate law aspects that prevent short selling? This is something that should be addressed....

China Stock Watchdog to Investigate Market Manipulation - People's Daily Online

Some suspensions started

https://twitter.com/x/status/616807484569710592