China Stock Markets CRASH!

China Stock Markets CRASH!

Posted in the China Forum


Port Moody, Canada

#1 Jun 24, 2013
ASIA MARKETS Updated June 24, 2013, 4:40 a.m. ET China Shares Lead Asia Losses Article Stock Quotes Comments (1) more in World Markets | Find New $LINKTEXTFIND$┬╗smaller Larger facebooktwittergoogle pluslinked ininShare0Email Print Save ↓ More
smaller Larger By DANIEL INMAN
Chinese stocks were in free fall on Monday as fear over a domestic credit squeeze pushed Shanghai down 5.3%, the most since August 2009.

The selloff was sparked by further signals over the weekend that China's cash crunch would persist, after a commentary by state-run Xinhua suggested that the government won't be taking any action soon. In addition, the People's Bank of China made no direct reference to the recent surge in borrowing costs for banks, at the same time saying that it will maintain prudent monetary policy.

"A lack of policy stance from the central bank during the cash crunch is the main reason that stock markets keep falling, so investors are waiting eagerly for any direction cues," said Wu Bangdong, analyst at Changjiang Securities.

China's medium sized banks continued to suffer heavy losses, despite a drop in the interbank lending rate, as the market was worried about their large exposure to wealth management products. Fitch Ratings estimates that more than 1.5 trillion yuan worth of these products will mature in the last 10 days of June.

China Minsheng Banking Corp. 600016.SH -9.95%plunged 9.9% in Shanghai and Industrial Bank 601166.SH -9.98%skidded 9.9%.


Port Moody, Canada

#2 Jun 24, 2013
China's broader indexes were weighed by financial concerns, with the Shanghai Composite crashing 5.3% to 1963.24 in the mainland. Hong Kong's benchmark Hang Seng Index fell 2.2% to 19813.98, while the city's measure of Chinese companies, the Hang Seng China Enterprises Index, dropped by 3.2% to 8938.63.

The fear over the banking system also translated into a shock for the local currency, as the yuan fell to 6.1411 to the dollar, compared with 6.1343 late on Friday.

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Signs of economic trouble in China were felt in one of its major trading partners, with Australia's S&P/ASX 200 down 1.5% to 4669.10. The market was weighed by local miners after spot iron ore declined by 1.7% on Friday. BHP Billiton BHP.AU -3.39%Limited fell 3.4% and Rio Tinto RIO.AU -2.13%Limited was 2.1% lower. In addition, a number of companies went ex-dividend in Sydney, exacerbating the local losses.

More broadly, Asian markets remained downbeat as concerns remained over the U.S. Federal Reserve rolling back its bond-buying program. Last week, Fed Chairman Ben Bernanke said that the central bank could trim stimulus measures later in the year, prompting heavy declines across the world.

Southeast Asia, which has been hit by outflows in recent weeks remained under....

Port Moody, Canada

#3 Jun 24, 2013

Port Moody, Canada

#4 Jun 24, 2013
Dozens of CCP China companies lost over TEN PERCENT OF THEIR VALUE in A DAY!



Surrey, Canada

#5 Jun 24, 2013
HILARIOUS how not a single, solitary one of the alledged "supporters" of the CCP here on tiopx has the courage to comment on this MASSIVE STOCK MARKET CRASH in China!

They are asleep, and dreaming Xi Jinping's OPIUM DREAMS, while the CCP itself is ASLEEP AT THE WHEEL and China's economy collapses!


Surrey, Canada

#6 Jun 24, 2013
The China markets are plunging again today.
Old Jew

San Francisco, CA

#7 Jun 24, 2013
Great opportunity to buy.

Surrey, Canada

#8 Jun 25, 2013
Good, then you'll get wiped out!

Check this out from the BBC:

Why China's 'Black Monday' is a global concern

After what has been called China's "Black Monday", the stock market has continued its plunge, dropping more than 20% from its February peak and taking it into what is technically known as "bear market" territory.

The market's fall, though dramatic, won't necessarily trigger the central bank to change its mind about holding firm on issuing more cash to the banking system.

The market has been fairly volatile during the past decade. The Shanghai Composite index is down 70% from its all-time high in 2007 and down nearly 50% since 2009.


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