Chinese stock made a dive again today..

Discussion in 'China' started by badguy2000, Jul 27, 2015.

  1. badguy2000

    badguy2000 Respected Member Senior Member

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    Holy $hit, Today, Chinese stock made a dive again...........

    several mongths ago, I spent about 5K dollars buying some stocks
    Before the first dive on June,19th, the value of those stock rose to 8K dollars.

    But now, they values only 3K Dollars.

    it seems that Chinese stock market is to experience long-term Bear Market
     
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  3. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    Take your money out and don't trust your government. It rose more than 100% in a year while Chinese economy was slowing down. Either sit tight for 5-6 years or forget about it.
     
  4. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Buddy the chinese govt. has made a $400bil fund to buy stocks and keep value up. Pull your money out fast.
    I suggest you invest in India... we have a very very transparent market. and our govt can not interfere as it does not have the power to. Everything is out in the open. Including our growth rate calculations ;)
     
  5. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Depends on the stock prices you have bought and inflation associated with them at the time you bought them.

    If you are holding good shares and you have bought them when they are at less inflated rates, then you should not touch them since they can give you good returns in longterm.

    Or else time to reduce your losses.
     
    Compersion, SANITY and sob like this.
  6. badguy2000

    badguy2000 Respected Member Senior Member

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    one of my classmates work in Beijing.

    He told me that his loss is worth about a Audi A6,which cost usually about 60-70K USD, during the stock crash on June 19th.

    I guess that he might invest over 1M RMB on stock market.

    He reccommended me buying a certain shares before the crash on June 19th.

    I followed his advice..then I got traped on June 19th until now....
     
  7. Compersion

    Compersion Senior Member Senior Member

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    What happens if a person cannot repay - I mean his return is negative (for example he goes long bets his house but loss is much more).

    Welcome to PRC economy

    No one is allowed to talk about loss and bankruptcy is unexplainable. I imagine the number of people moving to country side increases now ... (Fugitive and correctional)

    Also

    I was reading how many times the market moved 5%+ in 2015 people can make a lot of money if they get on the right side

    And for every loser there is a opposite leg to the trade - a winner

    But what happened to loser - does winner show sympathy and not take profits. Who is the winner (please don't say insider information)

    Does anyone loose any money in PRC ...

    And I read this thread ... Holy sh$t

    But the comfort is that it is a global phenomenon and globally markets are not doing well ... Is it globalisation
     
  8. mattster

    mattster Respected Member Senior Member

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    The chinese market is already full of companies the have a PE ratio of over 100. In the US most companies listed PE are below 50, only some software companies like Amazon, netflix have crazy PE numbers in the hundreds. Many are even below 25. Even Apple which makes billions profit has a PE of only 14.18.

    This mean Chinese stocks are overvalued and in a bubble, and now the government is bailing them out from a 30% crash.

    If government is going bail out the stock market every time it crashes more the 10 or 20%, then there is no risk for the retail investor right ?

    You just keep buying and prices keep going up.
    Wow, badguy this is like a kid in a candy store ?
     
    Rowdy likes this.
  9. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    The govt. has to balance the markets because prosperity is how the CCP derives it's legitimacy.
     
  10. blueblood

    blueblood Senior Member Senior Member

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  11. no smoking

    no smoking Senior Member Senior Member

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    A myth created by west propaganda.
    From 1949 to 1978, China can be described as prosperity, CCP was enjoying the most stable status in its history;
    Since 1978, how many times have Chinese economy been in crisis, did anyone question CCP's legitimacy?

    No, prosperity is CCP's duty not her legitimacy. If CCP fails to delivery it, the worst result is Xi and Li will have to step down.
     
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  12. blueblood

    blueblood Senior Member Senior Member

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    I think you are overselling the 1949-1978 period by a huge margin. China was far less stable than it is today. You had Tibet tensions, Korean war, Cultural revolution to name a few. Or am I not getting your point?

    Post 1978 generations know CCP as the "wealth and prosperity" in lieu of civil rights, guys. But that goes only so far.

    The sheer connectivity the Chinese populace has today will play significant role in differentiating between then and now. Suppressing information today is very much possible, completely eliminating it is not, unlike in the past.

    So things could brew up pretty quickly and any hard handed measure will result in unpredictable reactions.
     
    Compersion likes this.
  13. Compersion

    Compersion Senior Member Senior Member

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    Whats the worst is it best of the worst ... Taiwan elections nearby ...

    Not looking good if PRC stock market and economy is not doing well.

    Perhaps some military noise needs to be there. To bring everyone mind to serious matters.

    People might be laughing at how stock regulator is talking ... Not good for duty and legitimacy ... Pork prices ??
     
  14. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    http://video.cnbc.com/gallery/?video=3000401233
     
  15. angeldude13

    angeldude13 Lestat De Lioncourt Senior Member

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    Invest in commodities instead.
     
  16. Compersion

    Compersion Senior Member Senior Member

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    Was reading reports is why not devalue the yuan currency that way the pe and valuations of stocks will automatically be cut in USD terms. Also investors will want come to prc in theory with devalued currency. That would stabilise the stock market and bring in captial. Why spend billions when it can be done in millions. Further give impetus to export economy since much still depends in it and remain competetive. Also preventative of others taking march. Further make reason for investors to want to come and invest in stocks and FDI into PRC since reform of state owned is next step ... Cutting interest rate is much like after tech burst of 2000.
     

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