It seems that the slide continues despite all what the government has done.
finance.yahoo.com/[...]
How do you see this playing out? It seems China is no longer the 'darling' of investors and other countries are cheaper to open up factories. What do you think?
Bet they've been cooking the books for years. Would like to see what the REAL numbers are.
good!
I just hope the Yuan will drop so I can recover what I lost of my Canadian pension when the dollar took a dive.
rising price with shrinking volume, couple with strange RSI, it is going to be interesting time. 30th of this month will be the critical moment when the singapore FTSE china A50 closes it book for the month. i dont see china can influence the singapore market with its State Council directives telling investors how to trade there. so what happen on that date would be a good indicator.
As for the Yuan, the central government said just now, it would allow it to trade in a wider range of +/-3%. that is a significant signal. think going south.... :-)
How do you see this playing out? It seems China is no longer the 'darling' of investors and other countries are cheaper to open up factories. What do you think?
The tide has changed for China. It's downhill from here.
the stock market is just a small part of the 'war' in china. it is the debt market that is the real battle ground that make or break china's economy. i suspect, the 'power' is trying to use the stock market to balance the debt market woe and that stock market strategy played badly. put simply, it backfires. given the equity market, a capital market, is no longer serving its intended purpose, any business needing capital to survive will be in trouble. not good. btw, a circuit breaker of 10% fall floor limited daily is going to prolong the tumbles. in short, i wouldnt be standing anywhere too close to the debt market in case it implodes. :-)
So, I went to Google Finance, and I clicked a chart of the Shanghai Composite Index.
Guess what I discovered. It's still up +1535.95 points (72.22%) as of today's closing Tuesday July 28, 2015 for a one year time frame.
If you bought this index of Chinese stocks one year ago, fell into a coma, and just woke up today, you are still 72% richer than before.
@AlexKMG: You do have a point, if there really was a market. With trading suspended in 50% of listed stocks and a significant number of listed stocks hitting the 10% loss limit, you might have a problem converting being "richer" into cash.
the 72% profit is just a illusion. if one knows how ETF and Mutual Fund (either open end or closed ended fund) work, you would find that the entry/redemption value will be either at a discount or at a premium depending on the market condition. some times, at a very deep discount if you are trading in ETF, because the AP( authorized Participant) simply can not perform redemption/creation process as per usual due to market condition.
to be fair tho, if one invester enter and exit the fund at the right moment, a 40% profit is a profit one can not refuse. but not everyone has a crystal ball........:-) bear in mind that if everyone wants to exit the fund then the discount will be huge. i can see the central government will buy unlimited quantity of ETF/Mutual fund too? can you? :-) the government so far only protects the 'blue chips.' so...........scratching my head. :-)
