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chinas stock market crashing -29% since middle of June.

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nature1970

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Posted: Jul. 7, 2015 - 9:47 AM ET #1

losing 29 % shangia composite loss since june.
https://finance.yahoo.com/news/chinas-stock-market-crashing-chinese-095900183.html

with the yuan considered under valued this crash projecting nearly 60 % loss in market value by September. As America continues to tighten regulation of Chinese goods and services, China buisnesses starting to constict investment goals imho

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TheGoldenGoose

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Posted: Jul. 7, 2015 - 10:50 AM ET #2

What does this mean to the average US investor?

How can the average US investor profit from this occurrence?

~~~~~ZOSO~~~~~

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wallstreetcappers

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Posted: Jul. 7, 2015 - 1:12 PM ET #3

It means nothing to the US markets, we are disconnected until margin selling hits Chinese investors and they sell our assets like stocks and bonds.

It has been very interesting watching the government there try to handle this..they have been buying stocks and injecting money and it has been near the open for their markets...which is like 9-10 PM our time..and their market opens up, then the last few days it sells off after this pop is digested and the sellers return.

I'd really say another 40% is needed, they pumped up their market so fast and so high it was really a super bubble and the margin levels in that market were very high.

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nature1970

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Posted: Jul. 7, 2015 - 6:07 PM ET #4

s

Quote Originally Posted by TheGoldenGoose:

What does this mean to the average US investor?

How can the average US investor profit from this occurrence?

i am not sure what bejing is up to here.
It seems to be engaging in financial warfare.
givens:
China is communists and the government owns most businesses
Capitalism is allowed but in very small doses,
ex. Apple manufactures goods in china China owns the building ,labor , the material and the machines Apple rents these.
same with McDonalds. the franchising liscences are owned by a few elite buisiness with ties to government and in return Mcdonalds makes money on these franchise fees.
China is a large country with population held within a tenth of the land, however, all markets seem to be running cycles.
it seems we are nearing the end of a seven year bull markets in europe , china , america. Then bears take over for a year.

consistantly as pattern emerges, 1993 , 2000, 2007 , 2015.
selling short and covering transactions at the end of day seems to be where the money is generated You "bet" that they will go down and finalize the bet in immediate short term day traders.

Nyse and the amex, nadfaq seeing a percieved stability but all three now at the very top ever like a plateau, any serious strike can seriously take investors for a run to the door approach and with enough large sell offs the markets will generate the continued collapse bear markets need for a quick one year run to the bottom until a bottom plateau is reached around 8,000 for the dow. as investors begin a seven year buying cycle.

Bottom line selling short makes money

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nature1970

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Posted: Jul. 7, 2015 - 6:26 PM ET #5

description : selling short, having enough assets to buy a stock but instead sell a stock with a basis to cover this stock buying it in the future and selling it as if you owned it.
Simply put american 21st english : betting a stock goes down and covering the bet when it does.
example Betting that patriots lose without brady. covering the bet when they do.
China's market seems to easy though they are establishing a pattern too obviuos goes up when it opens down when it closes. Not sure the trading laws on short selling there. however it is as it is percieved this is a classic chance for a bear day traders dreams short selling money making day in day out machine.

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nature1970

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Posted: Jul. 7, 2015 - 8:12 PM ET #6

this could be a classic when the run to bottom ends the finacials collapse bejing owning it all anyway can state look what Western Captitalism did to our country and revert to a post even more government rule of order..... Just saying the chinese are alot more clever than one would percieve.
we state dumb like old fox.

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nature1970

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Posted: Jul. 8, 2015 - 3:03 PM ET #7

chinese market 85% of it owned in small investors our market 98% controlled by banks and hedge funds, the difference private citizens there are in a panic where here the motion is alot more consistent as large firms move very slowly the large amounts being held.
theseare set in longterm retirement and generational trust accounts. or simply being a bond pkg leveraging interests waiting for a more stable treasury bond to produce 6-7% return established

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Raiders22

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Posted: Jul. 8, 2015 - 5:08 PM ET #8

Quote Originally Posted by TheGoldenGoose:

What does this mean to the average US investor?

How can the average US investor profit from this occurrence?

There are several ways to attempt to do this. Here is one article from a year ago that outlines some of it. This has been coming for a while now and many investors have been planning for it. But as far as getting in now on some of the ideas--you have to decide if you think it continuing to fall or if you think it is nearing a bottom. Anyway. Read the article and keep in mind it is a tad old. But there are some others if you are interested.

https://www.forbes.com/sites/jamesgruber/2014/01/05/betting-against-china-in-2014/

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Raiders22

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Posted: Jul. 8, 2015 - 5:17 PM ET #9

Quote Originally Posted by TheGoldenGoose:

What does this mean to the average US investor?

How can the average US investor profit from this occurrence?

Absolutely it can affect our markets as well as others. There are articles all the way back to 2007-8 or so that addressed this. Things are much more interwoven than in the past and the global economy is evident in the markets especially. The extent it will/could is the part that is up for debate. The good thing (or bad depending on your view) is it is usually a lagging effect. Other markets may show signs before ours do. There may be a few things we could do to stymie the effect as well.

But as usual--time will tell. For example, some have been calling for this for a while. And of course if you say it over an over enough --- eventually you will be right. So, hard to say.

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nature1970

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Posted: Jul. 18, 2015 - 1:27 PM ET #10

Chinas bold moves to stabilize stocks seem to be working a five fold plan.
one it outlawed all major shareholders from selling off large numbers of stocks.
2 it allowed all companies to sideline stocks from market conditions until panic state is relieved
3 it leveraged nearly 3 trillion yuan to pave the floor in gold so to speak to sure up stock values
4 now the market stabilized it has set to strategic reserve 483 billion in yuan backed gold to prevent such a decline in future.
5 set in motion safe guards to suspend trading if shanghi or hong kong drops more than 2 percent in future day trades.

these steps have made a 10% positive rerally. and set up a government secured market unlike any other in the world exchanges.

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nature1970

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Posted: Jul. 18, 2015 - 6:13 PM ET #11

other side of this coin getting money investments out of bejing will require an act of god during a economic down turn

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Raiders22

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Posted: Aug. 23, 2015 - 4:13 AM ET #12

https://money.cnn.com/2015/08/22/investing/stocks-market-lookahead-august-22/index.html

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Raiders22

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Posted: Aug. 23, 2015 - 4:16 AM ET #13

Highlights:

Stock markets are on high alert.

One of the biggest reasons is China's economy, which appears to be slowing down quickly.

And that has sent negative ripple effects through stock markets around the world, including the United States. The Dow plummeted over 1,000 points this past week -- the worst week since 2011.

Major global indexes logged dramatic declines and are showing no signs of turning around. The losses were far greater outside the U.S., with indexes in China and the U.K. stock market all falling more than 10% from recent highs. European and Latin American markets were all in the red too.

Concerns mounted after data showed that China's manufacturing activity had tumbled to its lowest level in 77 months. Next week, investors will get a closer look at Chinese imports, a key gauge for many countries that rely on China as a trade partner.

Three factors continue to hover over the markets:

1. Concerns that China's economy is slowing faster than its government has said.

2. Uncertainty over whether the U.S. Federal Reserve will raise its benchmark interest rate in September.

3. The effect of cheap oil, which has dropped to its lowest point in over 6 years.

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Raiders22

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Posted: Aug. 23, 2015 - 4:18 AM ET #14

So to answer your question earlier. As I said some experts think so. This is a quick and succinct article about how it may be playing a part in it now.

Who knows if it will continue or maybe worse. Time will tell.

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nature1970

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Posted: Sep. 7, 2015 - 11:56 PM ET #15

chinas dramatic devaluation sinking the number two economy to four with eu and japan now ahead of bejing... all stocks world wide leveraged with chnas out put production numbers in serious jeopardy, forcasting a 5-1 expert opinion of stocks here in us nearing a 2,000 week loss in the dow.

vxx is the dark canary if this stock does well expert insiders believe feds will raise ratesthe market will go down

if it does poorly the fed is to forgo rate increases and the market rebounds.

fed is now ego bound they rule the market not the market rules them all most a ramesis vs moses thing, the fed hardened its heart.

source dallas fedreral reserve governors remarks dallas.

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nature1970

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Posted: Sep. 8, 2015 - 3:36 AM ET #16

a 10 month correction process to commence. stock will steadiely decine in a three days down two days recovering as short sells will be recovered weakly the major hedge funds will realize the same shares they now own and recieve a third profit in the recovery banks citigroup jp diamond and golds and sachs will improve vxx anticipating a ten fold two split, during this rush. guess they'll blame yellen and lew for all of it but reality this is a bear market long term wet dream come true..... serieously all economic numbers will improve as wall street vs the federal reserve governors get it on. i bet the fed wins. 90%/10% over under odds

especially with bonehead/mcconnel law that only federal reserve can be used here as legal tender, citygroup gold notes bitcoins are now illegal, for all debts private or public

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chinas stock market crashing -29% since middle of June.

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