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China’s Market Rout Is a Double Threat

nytimes.com

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Re: China’s Market Rout Is a Double Threat

#61

Post by tokenadult »

Here is the latest reporting from Reuters on the opening of the stock markets in China, where it is already Monday 6 July 2015: "Chinese stocks jump after Beijing unleashes emergency support"

http://www.reuters.com/article/2015/07/06/us-china-markets-i...

The article notes, "Oliver Barron, China policy research analyst at NSBO, said it wasn't just faith in the markets at stake.

"'After the market continued to fall despite myriad support measures, the government reached peak panic mode and must have worried that investors would not only lose confidence in the markets, but in the government itself,' he said." This is the new issue in China, that now any weakening in the market is seen as a vote of no confidence in the central government. We'll see how the next week or so of trading goes.

Re: China’s Market Rout Is a Double Threat

#63

Post by curiousjorge »

dear wrote: post #47
curiousjorge wrote: post #17

vast majority of Chinese firms trading on the Chinese stock exchange offer no transparency, and with the recent scandals involving phantom companies valued at billions and "anti-corruption" moves is causing sell offs and capital flight. But this is hardly the concerning part, what is apparent is a loss of market trust in the system from the public and abroad. If China is to become a superpower, it cannot play by it's…

"China is to become a superpower, it cannot play by it's own rules." A superpower by definition is it plays by its own rule.

There is only one superpower at the moment and likely for quite some time. A few can claim it's status but cannot enforce or confront the one superpower directly.

Re: China’s Market Rout Is a Double Threat

#64

Post by socceroos »

dear wrote: post #47
curiousjorge wrote: post #17

vast majority of Chinese firms trading on the Chinese stock exchange offer no transparency, and with the recent scandals involving phantom companies valued at billions and "anti-corruption" moves is causing sell offs and capital flight. But this is hardly the concerning part, what is apparent is a loss of market trust in the system from the public and abroad. If China is to become a superpower, it cannot play by it's…

"China is to become a superpower, it cannot play by it's own rules." A superpower by definition is it plays by its own rule.

Yes, and no.

Yes in that a superpower does bend the rules to suit themselves.

No in that a superpower is suddenly held to a higher standard than the rest of the world. You'd need to resort to expansionism if you wanted to continue the way that China is right now.

Re: China’s Market Rout Is a Double Threat

#65

Post by pessimizer »

joosters wrote: post #39
smil wrote: post #30

Earlier quoted context omitted.

You're implicitly making a prediction here. Are you sure that the market will fall in the coming weeks?

Nope, that's not what I said.

Unless you were implying that this will continue, "Are you sure that the market won't fall another 30% in the coming weeks?" is simply a non sequitur. As of now this is something that could be called a correction; it could develop into something that could be called a crash.

As of now, if you invested the index four months ago, you haven't lost a penny.

Re: China’s Market Rout Is a Double Threat

#67

Post by dear »

socceroos wrote: post #64
dear wrote: post #47

Earlier quoted context omitted.

"China is to become a superpower, it cannot play by it's own rules." A superpower by definition is it plays by its own rule.

Yes, and no. Yes in that a superpower does bend the rules to suit themselves. No in that a superpower is suddenly held to a higher standard than the rest of the world. You'd need to resort to expansionism if you wanted to continue the way that China is right now.

Which superpower is being held to a higher standard right now?

Re: China’s Market Rout Is a Double Threat

#68

Post by mahyarm »

sneak wrote: post #32
marincounty wrote: post #16

Earlier quoted context omitted.

I don't think anyone will respond out of fear of being labeled a -------? I will only comment on buying realestate in the U.S.? I believe realestate should only be bought by U.S. citizens. Right now all a foreigner needs is a individual tax number, and money. We have no real idea how that foreign money was obtained? Or, who cares? http://www.zillow.com/intl/en/foreign-buyers-guide/

"A foreigner". Why do you care where they were born? If where someone was born is so important to you, why not extend it down to the state level and only let people buy in the state in which they are issued papers from? This is indeed thinly veiled nationalism/racism. In a properly functioning society, you should have no real idea how the domestic money was obtained, either. It's none of your business as a seller.

I think the more accurate assertion should be residents only. Or no long term unoccupied properties so people rent them out. Or you get my home town of Vancouver[0] or you get London[1], which is even more complicated. If your not a resident, then you can deal with just renting. In asian countries where they limit ownership to only citizens or residents, and your not china, you don't see such huge property value booms, and the average citizen there can afford a property.

I think the only reason why the bay area has become another Vancouver yet is because it has the huge tech industry surge to help support the prices somewhat. Also wide anti-NIMBY regulations could help a lot too.

The consequences of autocratic regimes and their capital flight is being felt around the world [2][3].

[0] http://saeidfard.com/post/113616107456/the-decline-of-vancou... [1] http://www.theguardian.com/uk-news/2015/jun/28/london-the-ci... [2] http://business.asiaone.com/news/chinese-become-biggest-fore... [3] http://www.nytimes.com/2015/02/08/nyregion/stream-of-foreign...

Re: China’s Market Rout Is a Double Threat

#69

Post by jblow »

WoodenChair wrote: post #31
sharetea wrote: post #2

China is in deep trouble; it has a total debt to GDP ratio of 282%, the highest compared to the other big gdp countries. ( http://bloom.bg/1evYSQ5 ). The housing bubble has already burst in the 3rd and 2nd tier cities in China, and the 1st tier cities are close to bursting. And the shanghai stock market is close to retracing back to 2000, since the current stock market has a p/e ratio that's 41% higher than that of U…

There's a lot of hyperbole in this post. The graph you link to of debt-to-GDP is actually very similar in China (282), South Korea (286), Australia (274), USA (269), Germany (258), and Canada (247). And for the record, South Korea's is higher than China's according to that graph. China's is more heavily weighted in "non-financial corporate" which is interesting. And the shanghai stock market is not "close to retracin…

Graph does not appear to be inflation-adjusted.

Re: China’s Market Rout Is a Double Threat

#70

Post by mc32 »

sneak wrote: post #32
marincounty wrote: post #16

Earlier quoted context omitted.

I don't think anyone will respond out of fear of being labeled a -------? I will only comment on buying realestate in the U.S.? I believe realestate should only be bought by U.S. citizens. Right now all a foreigner needs is a individual tax number, and money. We have no real idea how that foreign money was obtained? Or, who cares? http://www.zillow.com/intl/en/foreign-buyers-guide/

"A foreigner". Why do you care where they were born? If where someone was born is so important to you, why not extend it down to the state level and only let people buy in the state in which they are issued papers from? This is indeed thinly veiled nationalism/racism. In a properly functioning society, you should have no real idea how the domestic money was obtained, either. It's none of your business as a seller.

While it may not make sense, there are quite a few counties where there are restrictions to buying land and real estate.

Not sure about the reasoning, some are well off countries, others middling to low achieving countries. Still, it's not out of the ordinary to have restrictions.[1]

Greece, Mexico, Taiwan, Thailand, China and others.

I don't think it's racism. I do think it has to do with nationalism. Perhaps misguided. In some cases it's ideological (China, Vietnam, for example.)

[1]http://internationalliving.com/global-property-ownershi/

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