Worst market crash in 3 years signals bumpy ride ahead

Discussion in 'China' started by Ray, Mar 5, 2013.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    Worst market crash in 3 years signals bumpy ride ahead

    BEIJING: China's stock market saw the worst crash in three years on Monday, led by the biggest slump among developers, after the government called for more steps to cool property prices. The slide came a day before the opening of the parliament session which is due to anoint Xi Jinping as the next president.


    The benchmark Shanghai Composite Index dropped 3.65%, or 86.10 points, to end at 2,273.40, in the worst slide in three years. The Shenzhen index shed 5.29%, or 510.39 points, to end at 9,139.75. Hong Kong's Hang Seng also plunged 1.53% or 350.81 points to 22,529.41, mostly because of the slide in Chinabased companies.

    The market was protesting against the government's latest move to control housing prices by imposing a hefty 20% tax on profits accrued from property sales. The existing rate is 2%. Besides, banks have been asked to raise lending rates for people who already own a house.

    "It is unusual for a major Chinese company to cause embarrassment to a new leader by contributing to a market crash at this time. This is almost a revolt using the market as a tool. This shows the new policy has hit them badly," a Shanghai broker, who did not want to be named, told TOI.

    The market development has major political undercurrents as most stock investors and property businesses in China are either owned by central or provincial government agencies or associated with leaders of the Communist Party. Major state-run banks, manufacturing and mining companies own vast chains of investment and property companies.

    Worst market crash in 3 years signals bumpy ride ahead - The Times of India

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    If the market development has most stock investors and property businesses in China owned by central or provincial government agencies or associated with leaders of the Communist Party, then it is surprising that such an embarrassing situation is being sketched when Xi is about to be anointed as the new Wang!
     
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  3. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    Over valued properties will sink China...
     
  4. satish007

    satish007 Senior Member Senior Member

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    a lot shit companies in this china stock.
     
  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    Huaxia rox would love that word 'shit'.

    It is his staple for excitement.

    It maybe true that the real estate in China is overheating, but then it could have been controlled till Xi becomes the Wang! That is the general belief that things can be controlled in China.

    Or would that not be a truism and instead market forces actually dictate the fate?
     
    Last edited: Mar 5, 2013
  6. satish007

    satish007 Senior Member Senior Member

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    understood, thanks, how long will him be jailed?
    and cinoti be banned forever?
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    I really would not be able to comment.

    I miss Cinoti.

    He did have some good inputs.

    I hope not forever. We will put in a word.
     
  8. nimo_cn

    nimo_cn Senior Member Senior Member

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    So many paragraphs are being highlighted, trying really hard to get attention.

    Sent from my HUAWEI T8951 using Tapatalk 2
     
  9. G90

    G90 Regular Member

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    And yesterday China stock market get a huge rebound, each stock grow 2-3% yesterday, I earn 5%, China's stock market is highly dynamic, if you have no idea of it, just dont write shit about it.:cool2:
     
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  10. satish007

    satish007 Senior Member Senior Member

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    which one is good recently?
     
  11. G90

    G90 Regular Member

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    :cool2:Banking sector experienced the strongest rebound, and electrics and some consume sector are also worth looking at.
     

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