Chinese Stock Market Crash

[burn_this_city]

Starting to wonder if the 150% pump and dump in China isn't a bigger deal than the Greek sideshow. Almost half the stocks trading in Shanghai have a trading halt by the government to prevent a panic drop. This to me has a much larger implications to the world economy than 10M Greeks grifting the EU.

The biggest problem is the flood of mom and pop retail investors flooding the market. If these people get crushed there goes any chance for a soft landing to their slowing economy. China needs people to start switching the economy to a consumer driven one, hard to do when they lose their savings.

http://www.bloomberg.com/news/articl...rgin-debt-drop

[Regorium]

It's crazy all the things they've done to prop it up, even going to the big investment banks and warning them not to sell their stocks.

So shady, and really sounds like more of a ponzi scheme than an actual market.

[Oil Stain]

I've been debating on whether to short the market.

It has already dropped considerably, but it seems like there is still room to fall.

The Chinese are notorious for their fads. The rush into the stock market looks like one of them.

[Phanuthier]

Originally Posted by burn_this_city

The biggest problem is the flood of mom and pop retail investors flooding the market. If these people get crushed there goes any chance for a soft landing to their slowing economy. China needs people to start switching the economy to a consumer driven one, hard to do when they lose their savings.

well...

[CASe333]

It is a really interesting situation. Why has the Chinese economy faltered so badly in 2015?

From a short term point of view they are not really that exposed to Greece and cheap oil should be a godsend to a developing industrial giant such as China. So what is the problem?

[Jackpot_Smooth]

Originally Posted by Regorium

It's crazy all the things they've done to prop it up, even going to the big investment banks and warning them not to sell their stocks.

So shady, and really sounds like more of a ponzi scheme than an actual market.

In north america, wouldn't this qualify as manipulation of a stock price?

[polak]

Implications on Canadian Investments by the Chinese?

[pylon]

Originally Posted by Jackpot_Smooth

In north america, wouldn't this qualify as manipulation of a stock price?

LOL, we're talking about a country that basically allows intellectual property theft on a National scale, and the existence of the biggest online counterfeit market on the face of the earth (Alibaba).... and you think something as petty as stock manipulation is going to be a concern?

[CASe333]

Originally Posted by Jackpot_Smooth

In north america, wouldn't this qualify as manipulation of a stock price?

umm no we would just call that kind of manipulation quantitative easing... I know its different but is it?

[Slava]

Originally Posted by burn_this_city

Starting to wonder if the 150% pump and dump in China isn't a bigger deal than the Greek sideshow. Almost half the stocks trading in Shanghai have a trading halt by the government to prevent a panic drop. This to me has a much larger implications to the world economy than 10M Greeks grifting the EU.

The biggest problem is the flood of mom and pop retail investors flooding the market. If these people get crushed there goes any chance for a soft landing to their slowing economy. China needs people to start switching the economy to a consumer driven one, hard to do when they lose their savings.

http://www.bloomberg.com/news/articl...rgin-debt-drop

Its definitely a much bigger deal than Greece. The worst part here is that the Chinese pulled out the "bazooka" a couple days ago to try to stem the drop and it basically did nothing. Just grim.

[Johnny199r]

Good thing for Canadians is I wouldn't imagine many of us have much exposure to the Chinese market. A small percentage of a few global etfs or mutual funds at the most.

[FlameOn]

Originally Posted by Johnny199r

Good thing for Canadians is I wouldn't imagine many of us have much exposure to the Chinese market. A small percentage of a few global etfs or mutual funds at the most.

No but the economy is very interdependent these days. Crashes have the potential to cascade across investors world wide as investors panic. Canadian markets being hammered by resource and oil price slowdown in Asian demand and over-supply. Europe is being hammered by Greece. Other Asian markets are getting dragged down because of China.

Canadian markets have dropped ~7% from their peak in mid April. Not the 30% drop the Chinese markets have seen in the last month, but not unsubstantial either. Then again the Canadian market was not up 77% for 1 year period prior to the crash like the Chinese market was.

[Johnny199r]

Originally Posted by FlameOn

No but the economy is very interdependent these days. Crashes have the potential to cascade across investors world wide as investors panic. Canadian markets being hammered by resource and oil price slowdown in Asian demand and over-supply. Europe is being hammered by Greece. Other Asian markets are getting dragged down because of China.

Canadian markets have dropped ~7% from their peak in mid April. Not the 30% drop the Chinese markets have seen in the last month, but not unsubstantial either. Then again the Canadian market was not up 77% for 1 year period prior to the crash like the Chinese market was.

The 77% gain was ridiculous. I get what you're saying about the domino effect on other countries, but the Canadian stock market tends to rise and fall by natural resource prices regardless of a Chinese market correction.

I think the U.S has some bull market left in it, but Europe, Canada and Asia May have finished theirs...

[burn_this_city]

Looks like the crash has accelerated and there is fallout in all global markets. Today will be ugly by the looks of things.

[FlameOn]

Australia lost something like $23 billion today off their markets in one day. Oi... this will be bad.

[Top Shelf]

Sweet, the Dow is down over 1000 points at open

[chemgear]

Thanks NDP!

[username]

Yikes.....might be time to move into gold.....

[OMG!WTF!]

Not good for real estate in Vancouver and Toronto. Or maybe it is good news...I would imagine the big money has to go somewhere.

[nik-]

Originally Posted by chemgear

Thanks NDP!

Oh good, I was worried we wouldn't get this post ... but here it is.