*Official* General Market Chit Chat Thread

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haremdevil

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I still don't get why China have to support at 3000 level, last time china government don't really care how the stock market perform, they just focused on how the real economy grew.
Seems like it has changed.

6.8% on such a huge base is quite impressive, it is definitely not the same as 7% few years ago.

I let you see a picture, current salary for graduate in CHina:
photo.php.jpg

The only logic that I can think of why 3,000 is needed...maybe to protect their own investment?

By showing a mini recovery, those CCP ppl vested in those stocks can sell off before they abandon ship?
If so, I will be very surprised that it took them > 6 months and still can't dump finish? :eek:
 

Tooi Kono Machi De

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10 years tuition can buy 4 property and 200k stocks
going to be tuition teacher now! hehehehe

btw I did a restructing of portfolio today

sold off my 7000 sti etf to hoot more of
ARA, M1 & UOB

as these 3 fell more than the index, think I have more value rotating to them... even if it means losing like 0.6% on commission to broker

Why sell ETF wor...Thot ETF is to hold long term de? Besides..now sell u lugi isnt it?

But I think your ETF purchase is impulse buy last year also la :s13:
 

OngHuatHuat

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The only logic that I can think of why 3,000 is needed...maybe to protect their own investment?

By showing a mini recovery, those CCP ppl vested in those stocks can sell off before they abandon ship?
If so, I will be very surprised that it took them > 6 months and still can't dump finish? :eek:

No lah, chinese are born gambler, especially so in china stock market.
They all use margin account d.
Can short the market also mah. :D
 

kage

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I recall that some fund mangers mentioned stuff about electricity usage in China. That's partly why official numbers need to be taken with a grain of salt.

You are good, infact some china officials suggest using rail transportation to gauge their exports of goods and manufacturing, but got shot down ... :s13:
 

Maeda_Toshiie

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I have this suspicion that the support for the SSE is primarily for CNY. All hell might break loose after that...

If they want to keep the prices so high (paper valuation wise) for upward of 6 months, they might as well freeze the entire board. All the retail owners will then get to stare at the paper gains which they cannot convert. Meanwhile the People's Armed Police are on standby for 暴民
 
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OngHuatHuat

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I have this suspicion that the support for the SSE is primarily for CNY. All hell might break loose after that...

i hold the opposite view, current sell off is due to CNY, coz a lot of people need to raise cash to go back hometown, buy gifts for parents, give money to parents and travel expenses. All need money. :D
 

gamerx

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I still don't get why China have to support at 3000 level, last time china government don't really care how the stock market perform, they just focused on how the real economy grew.
Seems like it has changed.

6.8% on such a huge base is quite impressive, it is definitely not the same as 7% few years ago.

I let you see a picture, current salary for graduate in CHina:
photo.php.jpg
Because of their recently conceived strategy for economic growth. The PRC govt wants their economy to be less dependent on foreign investments and recognized the importance of the stock markets for businesses to raise capital. Also, can't afford to let their markets collapse, or millions will go bankrupt since a lot of their retail investors are heavily leveraged.
 

hindsight

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I have this suspicion that the support for the SSE is primarily for CNY. All hell might break loose after that...

If they want to keep the prices so high (paper valuation wise) for upward of 6 months, they might as well freeze the entire board. All the retail owners will then get to stare at the paper gains which they cannot convert. Meanwhile the People's Armed Police are on standby for 暴民

The CCP wants to keep the stock market from collapsing because they need it to raise capital for highly indebted companies. Chinese companies have been "robbing paul to pay peter" for quite a while now, it is unsustainable in an environment of overcapacity, plunging corporate profits and negative cash flows, interest payments alone will overwhelm these companies in no time. The only way to get out of this is to trade debt for equity, but Chinese investors are not going to want equity unless the stock market is in a raging bull market so the only way is to prop up the stock market, giving people the illusion that its still in a bull market.

The main problem with China is that SMEs simply have no access to credit, banks primarily only lend to the largest SOEs in China because they are perceived to be TBTF. SMEs have no choice but to turn to shadow banking, where interest rates are far higher and defaults more common, the stock market is the only place where they can raise capital cheaply.
 

hindsight

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Because of their recently conceived strategy for economic growth. The PRC govt wants their economy to be less dependent on foreign investments and recognized the importance of the stock markets for businesses to raise capital. Also, can't afford to let their markets collapse, or millions will go bankrupt since a lot of their retail investors are heavily leveraged.

"Wealth effect" of the Chinese stock market is way overblown. Stocks only represent a mere 15% of total household financial assets in China, cash is a whopping 60% in comparison to that.
 

Genosis

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Sold off all my STI ETF and have used the proceeds to add more of M1, ARA & UOB as all these 3 have declined way more than the index. I think I would get more value in the long run this way, even if it meant losing around 0.6% in total commission for the restructuring. Also as mentioned from my previous post, I should strive to beat the market instead of following the market.

Wise move. ;)

I am not very fond of the sti etf either...
 

kage

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Wise move. ;)

I am not very fond of the sti etf either...

Sti etf would be safest if u wanna double your capital during those extreme times when STI falls by more than 50%. :)

Like wise the next time STI drop by 50%, I will sell house/car/dogs to all in for capital gain.
 
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