Yes more intervening in the markets....their market is only up over 130% in a year....of course they let it skyrocket to unbelievable heights, but as soon as weakness comes and everything reverses the first thing they do is intervene just like every market does in this new economy of fun and games...more distortion more stimulus more propping of markets, stop it alreadyyyyyy...let the fucking markets do what they are supposed to...every single market around the globe is distorted ...these aren't real markets anymore....when you have to prop up markets with more money doesn't that tell you something .....let the cycle run its course... China brokerages pledge to buy $19.3 billion in shares to steady plunging market By Michael MartinaBEIJING | Sat Jul 4, 2015 10:54am EDT
BEIJING (Reuters) - China's top securities brokerages said on Saturday that they would collectively buy at least 120 billion yuan ($19.3 billionof shares in a bid to stabilize the country's stock markets after a slump of nearly 30 percent since mid-June.The pledge follows near-daily official policy moves over the past week, including an interest rate cut and a relaxation of margin lending rules, that have so far failed to arrest the sell-off, which some market watchers fear could turn into a full-blown crash.The rout in China's highly leveraged stock market has become a major worry for international investors, who fear a meltdown could further destabilize the global economy even as Greece risks crashing out of the European common currency.China stocks had more than doubled over the past year, fueled in large part by investors using borrowed money to speculate on further gains.The brokerages met on Saturday in Beijing to discuss the market situation and expressed "full confidence" in the development of China's capital markets, a statement on the website of the Securities Association of China said."Twenty-one securities brokerages will jointly invest 15 percent of net assets as of the end of June, or no less than 120 billion yuan, in blue chip exchange traded funds," it said.The brokerages will not sell off holdings as long as the Shanghai Composite Index is below 4,500 points, the statement said.That could leave them saddled with heavy losses on paper from the start. The SSEC index fell 5.8 percent on Friday to end at 3,684 points.Listed securities companies among the 21 brokerages, along with their major shareholders, also would buy back shares.Hong Hao，a chief strategist at BOCOM International，said he was confused by the slew of measures announced recently.Hao doubted the latest plan would be enough to arrest the price slide，and said it could sow the seeds of fresh problems in the future by further distorting the market."Around 120 billion yuan is not enough，but if leverage (more borrowing) is used，it could expand to over 500 billion yuan and that may have some effect," he said.Moreover, while brokerages were likely to focus on stronger, blue-chip companies, Hao said there would be little interest in saving small and wildly overvalued "growth" firms. Such companies are favored by ordinary investors from cashiers to taxi drivers, but have suffered some of the most savage declines in recent weeks.POLICY CONFUSION?Just a few months ago, state media had been exhorting the market's rise, saying China's bull market had just begun and denying that it was in a bubble. Investors big and small took that as a government signal to buy.Now, Beijing is struggling to find a policy formula to restore confidence in the market before too much damage is done to the world's second-largest economy.Weighed down by a property downturn, factory overcapacity and high levels of local government debt, China's economic growth had already been expected to slow to around 7 percent in 2015, robust by global standards but its weakest annual expansion in a quarter of a century.After the market close on Friday, the China Securities Regulatory Commission (CSRC) said China would cut initial public offerings and capital raisings and support long-term investors entering the market to help stabilize prices.The People's Bank of China (PBOC) also rolled over 250 billion yuan of medium-term loans to banks late on Friday to ensure adequate liquidity in the system.Investors say constant tinkering with monetary policy and regulations to try to temper the stock market slide raises wider questions about whether China is ready to open up its capital markets and have more influence in the international financial system.(Additional reporting by Samuel Shen in SHANGHAI; Editing by Kim Coghill)
BEIJING (WSJ)—The section of a World Bank report that calls on China to reduce government interference in the nation’s financial system starting “at the highest level” has been removed from the bank’s website two days after it was released. A note on the website said the section was taken out because it “had not gone through the World Bank’s usual internal review and clearance procedures.” A World Bank spokeswoman in Beijing said Friday that she didn’t know if the removal came in response to pressure from China. She said officials from the bank’s Washington headquarters asked that the section be deleted. China’s finance and foreign ministries didn’t immediately respond to requests for comment. (Mark Magnier) Fun and games abound.
Oversold? It's incredibly overbought. Oversold would be like -70% since June. China is going to do anything to avoid losing face on this massive bubble.
They are even halting ipos They are desperate to get back to 5000+ as if a 100% + gain in only 12 short months wasn't good enough.... So many have gotten so greedy for gains... Is 100%+ not good enough in one year. How much more do you need??? China is stepping in to try and save its flailing stock market.According to a Bloomberg report on Saturday, officials are suspending Initial Public Offerings (IPOs) – as many as 28 on the Shanghai and Shenzhen stock exchanges – to deal with the tumble in stocks.Stopping new companies from going public in IPOs may reduce the flow of cash from existing stocks, Bloomberg notes.There was no information on how long this ban would last.An earlier report indicated that Chinese officials also created a "market-stabilization fund" that will be supported by about 21 Chinese brokerages, who have pledged to buy at least 120 billion yuan ($19.3 billion) in shares.But as Bloomberg notes, that amount is small when compared to the $2.4 trillion that vanished from Chinese stocks in the last three weeks. Senior government, central bank, and regulatory officials met Saturday to discuss how to address the stock market crash.On Monday, China's Shanghai Composite index crashed into a bear market, and is now down nearly 30% from its June 12 high.That was after a massive 120% surge in the previous 12 months.Here's a chart showing the Shanghai Composite index's incredible rally, and the recent plunge. Bloomberg notes that the three-week decline was the worst since 1992..
They will do anything just like the pathetic central banks here in the US....QE 4 before they raise interest rates to 1%
you think this is a bubble? with the way the chinese government is reacting to this 3 week selloff, it's plausible to say that after this correction we'll see stocks double if not triple
The Chinese are inveterate gamblers. With apologies to those who are not and to whom I have implicated with this generalisation.