China: Regulators to investigate 'massive sell-off' of stocks

[webfact]

Regulators to investigate 'massive sell-off' of stocks
Wu Yiyao
China Daily
Asia News Network
Shanghai

SHANGHAI: -- The China Securities Regulatory Commission said it is probing "a massive sell-off" after Monday's sharp dive in the market.

The CSRC said it had received whistle-blower reports and market monitoring reports, and had organized inspection and enforcement teams.

The Shanghai Composite index lost almost 8.5 percent on Monday, the largest daily loss in eight years, followed by another 1.68 percent loss on Tuesday.

Regulators have previousely said that "malicious short sellers" will be severely punished, and investigations against short selling and market manipulation have been conducted nationwide, according to the Ministry of Pulic Security.

No results of the investgations have been released.

China’s stock market has seen wild swings in the past six weeks as it plunged some 30 percent from mid-June to early July before rebounding by about 15 percent after regulators took a slew of measures to boost market confidence and avoid risks extending to more sectors.

Share of some 2,000 companies listed in Shanghai and Shenzhen dropped on Tuesday, particularly those in the construction, technology and machinery sectors.

Shares of brokerages and lenders outperformed those from other sectors, posting gains of more than 2 percent on average on Tuesday.

Market insiders said A-shares market was adjusting on Tuesday after the huge plunge, and they remained bullish for the mid to long term, but it may take some time for investors to adjust their strategies and recover confidence.

"I have observed that investors have concerns, worrying that government supports and interventions may not last long," said Zhang Ming, an account manager with Xiangcai Securities, a Changsha-based brokerage.

"Monday was a result of the concerns that those who have taken profits after the three-week rally will withdraw."

Wang Jie, an analyst with Sealand Securities, said that on the positive side, the market is becoming more rational after the wild swings.

It may take some time for the economy to adjust and find a new engine of growth, and listed companies need to boost their performance to give share price growth real support.

"Reforms across all sectors have been ongoing and may contribute more to economic growth in the second half of the year and inspire more confidence," said Wang.

Source: http://www.nationmultimedia.com/breakingnews/Regulators-to-investigate-massive-sell-off-of-stoc-30265465.html


-- The Nation 2015-07-29

[bangkapi]

They have it wrong.

They should investigate the massive buying of stocks that keeps the only facade covering the world wide depression alive.

[BKKBobby]

Theres nothing wrong with short selling. Authorities manipulating the stockmarket is scary but massive shortselling is not altough the price gets pushed down low which is ok, then its cheap and we get plenty of bargains. If you dont shortsell you miss out on the bearmarkets.

Edited July 29, 2015 by BKKBobby

[Steely Dan]

It's funny how large falls in the stock market are scrutinized far more than large rises. This is a worldwide observation not just limited to China.

[elgordo38]

They have it wrong.

They should investigate the massive buying of stocks that keeps the only facade covering the world wide depression alive.

Quote Regulators have previously said that "malicious short sellers" will be severely punished, and investigations against short selling and market manipulation have been conducted nationwide, according to the Ministry of Pulic Security. unquote Markets are manipulated world wide its all one big ponzi scheme. The Wall Street Money Men, Hedge Funds the big Money Boys goose the market until like in China now they have the little guy rushing in at the bottom of the scheme to buy stock and they sit at the top on top of their fat profits and sell their stock to the little guy then they take their profits and short the market its a win win for these guys but sadly the little guy gets stuck holding the bag again. 2008-2009 taught us nothing. After the fear subsided greed settled back in in spades. Read the reports consumer confidence dropped from 99% to 90% while expectations were 100%. Housing sales are at 1967 levels in America. The little investor in China is mortgaging his house to buy stock and the rich are selling them their stock and buying multi million dollar shacks in Australia, Canada, England. England at least according to Cameron is now looking at where the money has come from to buy property there. He stated they are investigating 100,000 land transactions. I understand that 1/3 of the sales there are to foreign buyers. This whole idea of shifting jobs to China to raise their standard of living so they can buy American goods is fallacy. All they did was export their greed buy on credit factor to them. They created a small minority of super rich just like in the west. I always thought China was a clever country but they made the same mistake the West made by turning on the credit taps full blast. I think the debt factor there goes much deeper than we suspect and China would never tell you the truth regardless. We need another Noah to come back and save us from drowning in this sea of fiat money printing and unsustainable debt.

[fvw53]

It will be interesting to find out if China with its powerful Central Bank can escape the general rule that : an economy is good as long as the people believe it is good and it becomes bad as soon as the people believe it is bad.

[Publicus]

500K dubious investors got tsunamied in the crash, which had been enabled by the bubble created in turn by the party-government. It is an artificial market created by the Beijing party-governmet boyz to get money shifted to equities from the bursting property/housing bubble currently crashing.

Last year and this year the Prime Minister Li Kejiang had ordered it put in the party press/media and all over CCTV (Central China Television). That to realize Xi Jinping's "China Dream" the roughly dozen million with access to such funds needed to go all in on stock market investments. The CCP Boyz had made sure the stock markets would go up, and go up fast, which the markets did do.

While PM Li was out of the country, Li's enemies in the CCP pulled out their pin, however, to pop the bubble and crash the high-flying luxury vehicle to the new Heavenly Kingdom.

Former President Jiang Zemin's faction has been taking a hammering from Xi's and Li's faction under the pretense of an anti-corruption campaign, but this was the first seriously effective counter move by Jiangs' boyz everywhere. Jiang still controls domestic security forces, the financial sector, internet and communications.

Jiang's always wicked purposes are to make Xi and Li look like they are not in charge or in control. The two are in fact not in control, hence a big investigation that will intensify the intra-party fight while accomplishing nothing for the CCP Chinese people.

Republicans and Democrats in Washington butt heads to shut down the government and to risk the country's credit rating, which we will see again. In Beijing, however, the Public Security Police are now investigating this crash and a number of people will go away for a long time because of it.

Edited July 29, 2015 by Publicus

[houlicha]

Maybe they should go back to being good Communists. They haven't yet mastered all the tools of being good Capitalists.

[Usernames]

Mr. Wu, meet Mr. Ponzi.

[Publicus]

The point is well taken however the CCP Boyz in Beijing consider Mr. Ponzi to be a small time operator.

The Boyz are trying very hard to recreate 1929 in the CCP China.

Analyst: China stocks mirror crash of 1929

Posted on 2015.07.28.

New York • Chinese stocks will decline by about 14 percent over the next three weeks as the market demonstrates a trading pattern that mirrors the U.S. crash in 1929, according to Tom DeMark, who predicted the bottom of the Shanghai Composite Index in 2013.

The Shanghai Composite Index will sink to 3,200 after plunging 8.5 percent Monday to 3,725.56 in the worst selloff in eight years, DeMark said.

http://ipresspage.com/news/analyst-china-stocks-mirror-crash-of-1929

The party's personal People's Bank of China has bought $100 billion of stock to prop up the market which is continuing to nosedive...and those stocks have to be put somewhere soon.

The July Producer's Manufacturing Index fell one full point, to 48.2 which keeps it underwater from its minimally respectable 50.0

The myth the CCP Boyz in Beijing can and will do whatever is necessary to keep their financial and economic system on course has been exploded by this crash among other factors.

The Boyz were this week supposed to announce an expanded band for the RMB to move but things are pretty still over at the party's People's Bank.

The CCP Boyz greatest strength is that they say every day to the global markets that they can and do intervene swiftly and effectively in any crisis. Yet in this one and for the first time nobody has noticed anything the party has said or done. The market just keeps on crashing.

Edited July 29, 2015 by Publicus

[sammygood]

oh no, not another bubble

[impulse]

Maybe they should go back to being good Communists. They haven't yet mastered all the tools of being good Capitalists.

A few crafty bastards have sucked trillions of dollars out of a rigged system.

Seems like they caught on pretty quickly.