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Q: China stock market?
After the real estate slow down, many people is jumping on the stock market for what now seems a free meal. Now, leaving aside that there's no free meals to begin with, how many people currently trading, on the total, do you think have the minimum knowledge to operate with consciousness on the financial markets?
8 years 46 weeks ago in Money & Banking - China
They are the exact same people who, a matter of months ago, had blind faith into China's real estate market and thought that it would "never go down because the government is backing it up", this tells you a lot on who they are and what they know about trading and investments.
Now they use the same arguments on the stock markets, "the government will never let them fall", we shall see. Chinese are gamblers culturally speaking, but that does not make them good gamblers or winners.
Most if not all of them will sell at the first sign of downturn, that might be interesting. Two possible issues in such situation, they are allowed to sell and everyone else should brace for impact, or selling is banned and they lose everything.
China might be ruled by commies but it is no exception to the rules of good old' capitalism. Can't lose more than 10%? Li Hejun is crying in his Royce right now.
icnif77:
So, what's your suggestions/cure on the commies drive? Please, tell me what should we do, all of us stuck in here?
I tried wearing L shoe on my R foot, buTT....it's not really comfortable, if am honest. Maybe, I should try and hold the candle in my hand? I don't know. Maybe I should ask for political asylum in Germany? Do you Germans grant political asylums? I'm not sure.
I'm sorry, I have flash-back to candles (I suggest, you change your handle here) buTT.....by Bible's rules, (IMO of course)...Germans should live with pigs until 2945 as 'A Review for Atrocities Committed in 2nd WW'.
By the way, I'll never forgive you that Q about 'litting up the candles for Tian'. I'm not (that much) religious, so I don't have 'forgive drive' incorporated in my thoughts- that much-ooo.
You classify as an ordinary, double standard German nazi scum with that Q, whatever I'm concern.
My family predecessors originated in Germany with Jewish grand-pop in last century. Longer period, we arrived from 'Neot Hakkikar, Jewish settlement in S. Israel, just by Jordanian border. Imagine, Jewish settlers there know me by my first name, and I was in ''Neot moshav' in 1988 last time, staying not longer than a month.
What would German (clone) Research "Insti-fukin'-tute" say about that?
Please answer, before I sunk you into oblivion.
Post Scriptum: I think, you should use only proper Englo in your reply. You sound very educated this way.
'Shine On Your Crazy Diamond' by Pink Floyd on my I-fumes
Ha! My wife's uncle just invested, get this, one million RMB. He's an idiot who can't even shop, cook, clean or do anything on his own (not bad for 37 years old, eh?)
He's another one who cant afford to lose anything and now sits and watches the market minute-by-minute. Adding all these dreamers just means that traditionally stable markets will also get unhinged by 'fraidy cats' who dump at the first sign of a down-turn.
Time to invest in phase-plasma rifles with a 30-Watt range.
icnif77:
Am lobby-ing here, if posters can 'grant' more down-s to Sino's reply, because he wasn't really eager to teach his Uncle-in-law (LOL) about 'how to... on stock-y-market-thingy'.
I think, Sino by withholding right info didn't really contribute to the human race.
'I met my love in.......dirty old town, .....kiss my girl in a factory row....dirty old town, dirty old townnnnnn.'...........
I want to see some down---ssss (''sass' is the same pronunciation as when snake's moving on the 'floor-aa'' = F. Zappa's pronunciation),...... dirty old town
dirty old town......The Pogues on my I=tunes
I completely understand your hesitation. I do.
You're an Englo teacher, having no clue about 'buy low, sell high'.'
'O2, o2' means I'm on the high altitudes, where O2 is rarity, (think 'Chumulangma Feng') or---rrrr in Englo 'ROTFL-LMAO' thingy...
Why nobody ever 'down' this guy?
@ironman... for stock 600227 can u suggest a near minimum amount to get started with? also are the services of a broker necessary ? xiexie
ironman510:
I'm not sure if there is a minimum amount to start a stock account, I would suggest you invest Y50,000 to Y100,000 if it reaches 10% thats Y5000, or Y10,000 you just made yourself in a day. If you don't buy into stock 600227 by Thursdayish , it's probably best to find another stock like China Electric 600795, both can be long term and short term. A Nuclear power deal + stocks related to 600795 will be mixing well for the future, it's 6.73 now and was Y7.57 last Monday, I'm sure it will reach 8.00 by July or sooner but it's a snail stock, gotta wait. So 600795 can get you some Vacation money.
diverdude1:
thx for the info. I'd sure like to get in on this... broker recommendation ?
ironman510:
No, I never use brokers. Stock 600795 is up so far at 1:30PM today 5.50%, if you have put say 100,000 RMB into it that you would have made Y5000, there's the junk food haha. Example you bought it Friday and sold it today. Easy money,
I'm not following in detail Shanghai Stocks Exchange, except news from it on ZeroHedge, US market analysts/investors website. '0-H' sounds a bit 'jealous' to me, but here are few last week's interesting reads, if anybody care:
http://www.zerohedge.com/news/2015-05-29/chinas-nauseating-volatility-co...
http://www.zerohedge.com/news/2015-05-29/tale-two-bubbles-china-vsnasdaq
I'm out of active trading, but if somebody wants to learn more on important indexes and charts reading, here is US stock traders website:
http://stockcharts.com/school/doku.php?id=chart_school
Remember:
1. never invest any amount you CAN'T completely afford to lose.
2. always exit position, if stock drops more than 8% of your entry point. '8% drop below your entry point' signals wrong entry point, and you'll most likely lose more, if you'll remain in the position. Cut your losses, and move to another stock, by carefully studying chart, 'entry point' especially.
3. 'never invest 100% of funds available'. This rule could also be called 'Live another day'. Careful trader will invest only 30% of the whole amount available. Rest of the funds are needed for correcting mistakes at entry point, as if stock goes down (what it will!), you must have funds available for averaging down or lowering the value of your entry point. If stock goes up, you'll have plenty time to add to your winning position.
4. For correct entry/exit points follow, or I should say 'My fav indicators at charts reading are': 'AD line' 'RSI' and 'volume indicator'. I also use BB overlay (Bollinger Bands).
More on reading stock indicators/charting here:
http://stockcharts.com/school/doku.php?id=chart_school
5. You won't be able to successfully learn charts reading at the same speed as I'm learning Englo ---> s- (pun)
6. Once you're reading charts, don't use too many overlays. I usually use max 3 overlays for visible/clear chart reading. More overlays just confuse the whole pic.
Watch movie 'Snatch' 2001, especially Brick-Top's monolog, when he's explaining where saying 'as greedy as pig' comes from.
= ''Don't be greedy!'' 'Better bird than rabbit' thingy.
Don't fall in love with stock, because you're doing great!
Always take your profits, and never look back, i.e. move to another stock.
When you're exiting position, you should also exit it the same way as you entered: sell slowly, stock might edge up, right after you sold, so '30% of the whole stock position for sale' and so on.
Disclosure: 'I'm Non-naive English Teacher in China, not certified stock market adviser, and my post should be taken with (is it grain or ....?) bucket-s of salt.
'add-it': 'Once when I was really (should I write 'really' twice?) pissed, I made US police swallow the gum instead of chew it, as it was planned by futurists....I can't answer any more Qs on that 'sub-e-ject'!
I will admit, I can be very 'un-natural' when pissed. It's my mum's fault, I know-aa-aa.' Matthews& Phish Live in NY 'All Along (they must watch) The-(ir) Watchtower', and me 'LOL-my-ass-ss-off'.
I wonder, does it sound bad in Englo, if one say: 'I told u so'?. I promise 'no more Qs on my part!'
'No reason to get exited.......' I was born like that-o-oo'
My I-tunes sports new tu-ness: 'Once Upon The Time in The West' by Di-re Straights. I like solo guitar here---ooo
We move on...'fu-get' the history as Chinese say...
icnif77:
I'm not sure. I'm working on IELTS/TOEFL prep at the moment.
Good luck with IELTS exam. Hope you get a 7 or overShining_brow:
You forgot - have patience. Some things are bound to bounce back up.
I've been watching the Aussie dollar... right now, completely crap... a year ago, really nice. And, I know it won't stay long forever...
ie, look at stable performers that are currently below average.. and wait.
icnif77:
@dokken: 'IELTS not for me! For now.'
I'm teaching IELTS. I have 6 students, who attempt to enrol in Western Unis with IELTS exam in Sep. I think. Most troubles I have to make them move. Western learning attitude = 'you must do it yourself!' I can't get that into their heads. They like to sit in the class like sack of potatoes, and am 'torturer on duty' asking Qs and things.
I'm on the 2nd level of torture (i.e. slightly pissed') : 'students HW = ''prepare 45' class in English for the next week.....''
They're too comfortable with rota thingy, what won't work in West. 2 of them follow my instructions, and are both gifted, so I'm sure they won't have problems to achieve 5.5 Band. Others, they must do 10 push-up, as soon as I hear Chinese in the class. They owe me push-ups
. I'm the push-ups creditor. At the moment! I'll make them do it at next sunny day. They know...LOL
Head told me, all Chinese English teachers must pass/have IELTS Band 7, to teach at our School. They all lie to students they have it. He asked me not to say anything to students. I forgot what Shining said....
@Shining: 'Buy low and sell high' is traders mantra. In other words, don't wait till thingy goes up, but be ready to buy, when it dips/low. It's just opposite than regular people (you) think.
'Trading charts' differs in 'view' time. You can have short time charts ('minute', 'day', 'week') and long term charts ('1m', '1Y' or longer). Indicators on different charts work/show/have different meaning. Forex, if traded goes in 'pairs': 'US$ vs. Jap', 'Ozz$ vs. US$', and similar.
If you're not trading it daily, and you're looking for good entry point, it's fairly simple: 'open long term (1y or longer) chart, and see present level. If present level is below start level (a year ago), that's good time for entry. However, it can (it will, believe me!) always go lower, right after your purchase.
IMO, I think you can profit/save more on currencies purchase, if you just avoid exchanges with (high) fees. I personally don't (like to) pay fees at currency exchange. I exchange Rmb through China Merchants Bank, which exchanges any currency at the spot rate, what is the lowest rate available anywhere in China. We have slight problem, when I need foreign currency in cash. I must tell them I'll pick-up cash currency 7 days in advance, and then I'm at Zhengzhou CMB next week: 'We don't have any US$ cash today'. sigh.....'OK, I'll take whatever currency you have available....' 'You must come next week'. LOL
I exchanged 500 UK Pounds last year in Urumqi CMB. I'm carrying cash Pounds in my valet longer than 6M, and then finally I have ticket to LON. I'm traveling further to EU, and staying longer than 3m in my home, so instead having planned shopping in London, I must exchange Pounds in my home bank. I'm broke, and need some Eur. Teller: 'we can't exchange this Pounds. They were taken out of the circulation (by the Queen = me: 'Good Save The Queen' singing loudly..LOLO) 3Y ago. LOLOL. I'm starving. I had enough Eur to buy windshield wiper and start to clean car windows on the red light. My family laugh at me, when I asked them to lend me few Eur. I could exchange 500 UK Pounds at my return to LON, because I had flight Lon-Bj.
CMB mastards gave me UK Pounds, which I couldn't exchange anywhere, but at the BOE. I think, 2014 was the last year BOE was exchanging that notes. So, caution at CMB. You'll need magnifying glass and Yahoo-gle search on current/still-in-float bank notes.
ironman510:
I invested all my savings back when I started, I couldn't afford it. But I did because hey I'm still young. Well that was the excuse I used at the time. I hated my savings just sitting. Now no regret. But some will regret because they are new at this craft! When you lose you learn, and next time you'll get better at it.. Its just me, Id say go for it. There's no telling how long this bull market will last for.
dokken:
Sorry I couldn't understand what you were saying. Let me know if you are in Beijing because I know some good IELTS teachers there who can help you pass and get a good score.
They are the exact same people who, a matter of months ago, had blind faith into China's real estate market and thought that it would "never go down because the government is backing it up", this tells you a lot on who they are and what they know about trading and investments.
Now they use the same arguments on the stock markets, "the government will never let them fall", we shall see. Chinese are gamblers culturally speaking, but that does not make them good gamblers or winners.
Most if not all of them will sell at the first sign of downturn, that might be interesting. Two possible issues in such situation, they are allowed to sell and everyone else should brace for impact, or selling is banned and they lose everything.
China might be ruled by commies but it is no exception to the rules of good old' capitalism. Can't lose more than 10%? Li Hejun is crying in his Royce right now.
icnif77:
So, what's your suggestions/cure on the commies drive? Please, tell me what should we do, all of us stuck in here?
I tried wearing L shoe on my R foot, buTT....it's not really comfortable, if am honest. Maybe, I should try and hold the candle in my hand? I don't know. Maybe I should ask for political asylum in Germany? Do you Germans grant political asylums? I'm not sure.
I'm sorry, I have flash-back to candles (I suggest, you change your handle here) buTT.....by Bible's rules, (IMO of course)...Germans should live with pigs until 2945 as 'A Review for Atrocities Committed in 2nd WW'.
By the way, I'll never forgive you that Q about 'litting up the candles for Tian'. I'm not (that much) religious, so I don't have 'forgive drive' incorporated in my thoughts- that much-ooo.
You classify as an ordinary, double standard German nazi scum with that Q, whatever I'm concern.
My family predecessors originated in Germany with Jewish grand-pop in last century. Longer period, we arrived from 'Neot Hakkikar, Jewish settlement in S. Israel, just by Jordanian border. Imagine, Jewish settlers there know me by my first name, and I was in ''Neot moshav' in 1988 last time, staying not longer than a month.
What would German (clone) Research "Insti-fukin'-tute" say about that?
Please answer, before I sunk you into oblivion.
Post Scriptum: I think, you should use only proper Englo in your reply. You sound very educated this way.
'Shine On Your Crazy Diamond' by Pink Floyd on my I-fumes
According to an article I read, the recent China stock market rush is due to an urge from the Uncle Xi. It seems the recent downturn in the economy has gotten him worried. The state can only do so much to spur consumption. Why else would millions of Chinese mainlanders suddenly start investing in the market? They were told to.
xinyuren:
oh, i forgot the source: http://finance.yahoo.com/news/know-china-worried-150558108.html Judge for yourselves.
ironman510:
Good I hope so. More worried, more lower prices and more corrections that when I slip in for the recovery and make my money. .
Probably nobody is the answer to your question. Have you watched Mathew mc Conaghey's Speech in "the wolf of Wall Street "? No mf knows if shares are going up or down. Least of all stockbrokers. Most traders lose money when trying to turn it into a career. I just like having a punt
i find it hard to get good information. I bought shares in Oxus gold (Lse). I cannot really any information about its history online. Inside information is the best way
icnif77:
It sucks that movie. But it wasn't Mc, I think. It was (I can't remember his name). I have good visual memory (almost 'photo'), but I'm very 'ben' with memorizing the names.
Leonardo di Ch-ia-prio'. I like his NSA/CI of A-Paki movie. Only! The most I fancy in that movie is the Iranian nurse who gave him rabbies shots. She's really the 'flower' among all the violence.
The title was something about 'Lies and something'....I can't remember, but CIA's work in Paki-land and drones and things. Movie made in 2008, I think.
'Body of (f-)Lies' 2007
.
I read an article on that topic
http://www.chinafile.com/reporting-opinion/media/shanghai-stock-market-bubble-finally-bursting
Don't mind the title, the article is really about the current trend to go on the stock market and "invest". It seems a lot of investors are ayis who got money through land requisition from local authorities. Of course, they invest the ayi way : listening to whatever other ayis says, don't ever bother doing proper research about the companies you invest in. They will listen to a few success stories and will never ever wonder how many fails for one success. With such a mentality, imagine the fantastic opportunities for pump-and-dump schemes.
icnif77:
It looks here entire market is 'p&d' in such a huge capital inflow in short term.
I'd say 'Sell in May and Go Away' for this market, but who knows. Short term trading might works well.
If one can't do DD (because all data in Chinese), what's the difference between buying stock in China from buying a lottery tickets.
DrMonkey:
@laowaigentleman I found interesting articles with your key... Most amusing ^^ I wonder if your average ayi is paying attention to those stuffs. Do they read and follow a bit the press, or they solely rely on their ayi circle ?
laowaigentleman:
I'll go with the circle and the "pronostications" of the authoritative insider. Pump and dump's definitely the name of the game.
The Gecko classic with the state acting as Gordon's guarantor. The house always wins.
http://www.zerohedge.com/news/2015-05-31/chinese-stocks-are-surging-weak...
laowai --------> China’s Ministry of Finance may set additional quota of 500b-1t yuan for local governments to swap debt into municipal bonds, according to people familiar with the matter.
Plan needs State Council approval, according to the people, who asked not to be identified because deliberations are private.
Finance ministry said March 8 govt would permit as much as 1t yuan of high-yielding debt to be converted into municipal bonds.
- CHINA TO HOLD LIVE-AMMUNITION DRILL IN YUNNAN PROVINCE: XINHUA
During the exercise, all types of aircraft without approval shall not enter the airspace, into Gengma county, vehicle Zhenkang border exercise area, please obey traffic control personnel. Exercise does not affect normal production and life of the masses. To listen to local people and local governments participating troops command, exercise control without approval shall not enter the area. Exercise until further notice.
- So... bad data, more stimulus, and warmongery... BTFD =
- Buy The Final Dip
, in other words: 
- 'extreme caution while entering this market'
laowaigentleman:
It's clear what's up. They've reached the point where the stimulus doesn't work anymore. Capital flight is in even fuller swing than usual and the rest of the money's going into the stockmarket.
It is quite easy to see this. For years, the world has depended on growth from foreign markets, like China, and it still does.
I've spent a lot of time working on understanding accounting, economics and the history and finance, and I can only conclude that no matter what your degree of expertise, you can't understand this place. I think it was always about cooking the books, scam and financial alchemy like re-hypothecation.
And at the end of the gold rush, what does China have to show for it? Ring roads to nowhere, ferris wheels in the middle of nowhere, ghost malls for the terminally stupid, and a huge load of houses that'll fall down in about 10 to 15 years.
I'm certainly not interested in speculating on the price of solar panels now.
icnif77:
http://www.zerohedge.com/news/2015-06-02/china-goes-full-btfd-tard-record-new-trading-account-openings-send-stocks-16-2-days
After scaring millions of freshly created stock market speculators with a 10% 'correction' last week, it appears the PBOC's wealth-effect-creating, fix-the-leverage-overhang-with-temporary-stock-exuberance strategy was put into action with a record-smashing 4.4mm new accounts opened. Since Friday's lows, CHINEXT - China's tech-focused index - is up an astounding 16% (the largest ever 2-day swing). The Shenzhen Composite has also soared over 12% to fresh highs but we note the broadest-based Shanghai Composite has yet to make it back to last week's highs (even though it is up 9% from last week's lows).
Notice that while the high-beta muppetry of CHINEXT and Shenzhen are soaring to new highs, Shanghai is unable (for now) to make new cycle highs...
So how do we know this is a bubble?
The week that saw the largest drop in Chinese stocks in recent history, saw a stunning 4.4 million new retail accounts opened (over 4x the peak pace of opening in 2007's bubble).
* * *
One can't help but wonder if this 'distraction' for the masses is the bread-and-circuses to keep control as the debt-fueled Chinese economy collapses right in front of their eyes.
bill8899:
Icniff77 or 88, I don't see the 'more stimulus'. Please tell me what they are spending $1.6 trillion on this year?
Really I wanna na no. Gentleman: Think of a big Pawn ZZ scheme. No, much bigger.
icnif77:
Companies get out of debt by issuing new shares, hence market must be up, supported by huge no. of new trading-ayi's-accounts. Printing presses work (-ed) well in US, so why not also in China, and if you add into mix recent 'currencies wars', China is well off.
By the US Stock Exc. rules, Chinese retail investors must/will get wiped out too, however something's telling me, that might not happen (US style flush). Chinese manage things differently, however I don't understand how.
Even if I could read Chinese (look into Chinese Econo data), I would just watch Shanghai Exc.
I'm buying HK's bullion only.
http://www.chinadaily.com.cn/business/2015-06/02/content_20888561.htm
What happened about a century ago somewhere overseas when also the shoe shine boys were talking stock...?
icnif77:
It looks like ayis and farmers are getting hurt. Posters involved in China's market should think about US Stock Exc. saying: 'Sell in May, and go away'
Yesterday's trading day with CHIN-EX charts:
http://www.zerohedge.com/news/2015-06-04/china-crashing-again
China Is Crashing (Again)....
Awesome. Like the whole market, each one, is a big proposition bet. I gotta watch this.
Have fun kids! I will be in dollars. Yea, I know ahahahaha
icnif77:
Long-term hold idea for foreigners (non-Chinese):
http://www.zerohedge.com/news/2015-06-04/vanguard-buy-mainland-china-shares-69-billion-em-index-fund
China A-shares in Emerging Markets Stock Index Fund
bill8899:
Uhhh no I won't be going long on Chinese stocks these nowadayses, thanks
Feel free!
Unlike Zero Durden, I dunna fall in love with a market and cling to it desperately evens after publishing *interesting* info about the machinations if said market.
That Tyler Hedge is in love with China or alternately hates anything USAnian but I dunna suffer from this disease.
icnif77:
But, this is Vanguard in love with China, not TD. Vanguard (AMEX) is buying Chinese A shares, and opening Emerging Markets Fund for 'wive me, dine me, 69 me' of US$ billions.
This is very positive outlook on China long term, IMO. All 'ney-sayers' drown in jealousy.
bill8899:
Vanguard sells funds. They probably noticed a recent sellout in their China funds, so they want more investors in those funds. Answer: Tell everyone China is the next biggest thing.
I could look up their China and other fund prices, but I cannot be bothered.
http://www.zerohedge.com/news/2015-06-04/overnight-chinese-stocks
Overnight (yesterday) trading in China in all its BTFD glory...
ironman510:
Yeah I watch that and was laughing my ass off after I saw the huge crash then recovered to close in the red, won myself 7000 thanks to that
icnif77:
This market is good, but you must be on it whole time. It's heaven for day-traders.
However, if you didn't enter at 1pm, and triggered 'sell' before the close, you didn't make anything.
Traders rule: 'Till you don't sell, don't count increased stock value as profit'.
You can only count your profit in cash, after your exit.
OT - a bit:
http://www.zerohedge.com/news/2015-06-06/gold-64000-–-bloomberg’s-‘china-gold-price’
Q: 'Did i tell you, or what did I tell you?'
A: '.....and certainly, I wouldn't trust to financial advice of poster on eChina Board...' statement of Mr. Donkey.
and another A: '.....Rmb will be good as toilet paper in the future......' of another poster here-ooo on thread 'Can Rmb replace US$ as Reserve Currency'.
I can't recall Riri's answer.........LOL
'Where have all cheerleaders go.....?'----> B. Dylan
And now, c&p from your 'favorite' 'Zero-ba-na-na-Hedge':
Gold At $64,000 – Bloomberg’s ‘China Gold Price’
- Bloomberg Intelligence suggest gold-backed yuan see gold at $64,000 per ounce
- “Chinese gold standard would need a rate 50 times bullion’s price”
- As China-U.S. relations deteriorate, gold-backed yuan possible
- Dollar and financial and monetary dominance of U.S. at risk
- U.S. and China war of words continues to escalate
- China rejects U.S. hegemony in Southeast Asia
- Currency war to escalate
Bloomberg is US Financial publication, blocked in China.
icnif77:
If China were to partially back its yuan with gold it would require a gold price of $64,000 per ounce, 50 times gold bullion’s price today, according to a recent article from respected Bloomberg Intelligence.
It seems like an outlandish forecast. However, as tensions between the U.S. and China continue to escalate such a scenario is not actually as implausible as it may first appear.
http://www.zerohedge.com/news/2015-06-08/when-it-rains-it-pours-shares-c...
What bubble?
One business model that’s easy to understand is that of Hong Kong-listed Jicheng Umbrella Holdings Limited. As you might have guessed from the name, the company designs, researches, manufactures and sells plastic umbrellas. That’s really all you need to know to appreciate the following chart which shows that shares have risen some 2,700% since February 13 (also note the annualized figure)...
http://www.zerohedge.com/news/2015-08-02/citadel-unit-barred-trading-chi...
Define irony: for the past 7 years, Wall Street's worst kept secret is that Citadel, the world's most levered hedge fund, has been the NY Fed's just slightly more than arms-length enforcer of market stability, by which we mean spoofer, buyer and otherwise "plunge protector" in the equity and E-mini futures markets. The secret got even less "secret" when of all the possible hedge funds blogger Ben Bernanke could have gone to, he picked the Chicago HFT powerhouse, confirming the cozy and tight relationship between the Federal Reserve and the firm which has been increasingly linked to market manipulation not only in equities but bonds and virtually all other asset classes.
Which is why Citadel must have been shocked to learn late last week that China had suspended trading at a brokerage account used by Citadel in China.
When the news first broke last Friday, we asked, somewhat rhetorically, the following question:
China Suspends Trading at Citadel Unit Brokerage Account: Nikkei. Are they suggesting the U.S. PPT is China's Dump Enforcement Team?
— zerohedge (@zerohedge) July 31, 2015
Today, the WSJ had more detail on the surprising snafu involving the Fed's favorite market intervention vehicle, confirming that Citadel said trading in one of its China accounts has been suspended, as Chinese regulators battle a steep slide in stock prices.
The reason: China’s securities regulator said Friday it has launched a probe into automated trading and has restricted 24 stock accounts suspected of influencing stock prices. The government didn’t name any of the companies behind the restricted stock accounts. Citadel said Sunday that one of its accounts was among them.
Of course, China's crackdown on foreign trading is not news, and had been reported about a week ago: in its endless list of scapegoatees, China had decided that blaming "evil", if faceless, foreign sellers would be just as effective to boost confidence in a rigged market as accusing "malicious" sellers. That remains to be seen, but what is surprising is that while Citadel is best known for propping the US market higher, China is suggesting that the same NY Fed Plunge Protection Team extension was implicated in the recent downward move, using "automated trading" or otherwise. Surely, China's regulator would not utter a peep if like in the US, Citadel had been used to support stock prices.
When shit finally hits the fan... there wont be anything left of that poor fan.