Meanwhile in China....

Generali

Some numbers from JP Morgan, quoted on the FT Alphaville blog (my bold):

The median return of the China A-shares over 12 months to the market peak on 12 June is 200%. 185 companies are in the top 10 percentile; the median return is 410%. These companies declined by 57% from the peak on 12 June to 7 July.



SHCOMP, SZCOMP and Chinext [the three main stock indices in China] were down 28%, 38% and 40% during the same period…


As of 8 July 2015, 1,347 companies, or 40% of A-share free-float market cap, are not trading, up from 431 companies on 12 June 2015.


All A shares, excluding 764 suspended stocks, declined by 48% on average from the peak on 12 June to 7 July.



Sector-wise, all sectors declined more than 40% from 12 June to 7 July. Telecom dropped the most at 52%, following by Materials (-50%), IT (-49%), and Industrials (-49%).


Over 1,000 companies have declined by more than 9% in eight trading days since 12 June. The normal daily price limit is 10% for A shares [there are about 1850 shares trading on the main three indices].

Gavin234

Does anyone know if Jim Rogers the billionaire got out of Chinese stocks already? I know he was so bullish he said some of his China stocks he would never ever sell.

Generali

Gavin234 wrote: »

Does anyone know if Jim Rogers the billionaire got out of Chinese stocks already? I know he was so bullish he said some of his China stocks he would never ever sell.

4 days ago he was still recommending China, Japan and Russia as destinations for your investments.

http://jimtalksmarkets.blogspot.com.au/2015/07/q-what-do-you-like-globally-as-far-as.html

mwpt

Graham_Devon wrote: »

I just can't quite believe the fix to all this is to make it even easier for people to borrow money to invest int he chinese stock market. I just feel for the poor saps who will be brainwashed enough to carry it out.

Like I said earlier in this thread, INTERVENTION in markets everywhere. Things can only ever go up. House prices might come down? No problem, drop interest rates, print money, FLS, HTBx.

EDIT: Central banks : socialising speculator losses since 2008.

Generali

mwpt wrote: »

Like I said earlier in this thread, INTERVENTION in markets everywhere. Things can only ever go up. House prices might come down? No problem, drop interest rates, print money, FLS, HTBx.

EDIT: Central banks : socialising speculator losses since [STRIKE]2008[/STRIKE] 1720.

https://en.wikipedia.org/wiki/South_Sea_Company

HTH.

cells

Generali wrote: »

Some numbers from JP Morgan, quoted on the FT Alphaville blog (my bold):

How can it be seen as anything other than a mild correction to a overheated market when the index is still some 90% above what it was just a year ago.

This has probably been a good thing to pop now and teach the Chinese gamblers that it's not a one way bet or even a bet at all it should be investing in the underlying company and its current and assumes future earnings.

Sabrina2000

Generali wrote: »

4 days ago he was still recommending China, Japan and Russia as destinations for your investments.

http://jimtalksmarkets.blogspot.com.au/2015/07/q-what-do-you-like-globally-as-far-as.html

Well Jim Rogers would say that if he has just lost a ton of money and wants others to start buying in to stop it falling anymore.

Generali

cells wrote: »

How can it be seen as anything other than a mild correction to a overheated market when the index is still some 90% above what it was just a year ago.

This has probably been a good thing to pop now and teach the Chinese gamblers that it's not a one way bet or even a bet at all it should be investing in the underlying company and its current and assumes future earnings.

Perhaps it's a mild correction.

Bubbles don't tend to correct mildly.

stator

Reminds me of some of the people in the UK who mortgaged their home to use as a deposit for 6 buy to let flats prior to 2007 as their 'retirement plan'. Now they're left with 7 mortgages they can't service and no retirement income.
Collective hysteria is still amongst us.

cells

stator wrote: »

Reminds me of some of the people in the UK who mortgaged their home to use as a deposit for 6 buy to let flats prior to 2007 as their 'retirement plan'. Now they're left with 7 mortgages they can't service and no retirement income.
Collective hysteria is still amongst us.

did they got one of those -0.5% BOE trackers so have no mortgage to service and are below 65 so don't yet receive a pension?