Media won't report it - China 'B' Shares (foreigner owned) fell 24% since Monday

Discussion in 'Trading' started by ByLoSellHi, May 24, 2007.

  1. What must be an accident is the negligence of the mainstream media to cover the fact that Shanghai "B" shares, the kind owned by foreigners, dropped 7.9% last night, the third consecutive daily loss, closing at 297.57, down 24% from 371.26 on Monday. This drop is not reflected in the Shanghai Composite, which lists the "A" shares controlled by the Chinese (not that they would ever manipulate the market, of course!).

    Note this excerpt, too -

    Asian markets were down across the board, but it really bothers me that the WSJ, who is in a fight to maintain its "journalistic integrity" against the onslaught of Rupert Murdoch (another billionaire you don’t want mad at you) can make the statement "China’s Shanghai Composite Index closed 0.5% lower at 4151.13 after remaining volatile through most of the session on Mr. Greenspan’s view. The decline follows strong gains over the past three sessions in property and other domestic consumption shares, after China widened the yuan’s trading band against the U.S. dollar last week." Do they even know about the B shares?

    So excuse me if I continue to take a little more off the table ahead of the weekend, but I’m just not sure I can trust what I’m hearing. If it’s a real rally, we’ll have months of fun ahead of us. But if it’s going to snap back to 12,500, perhaps I should stick to cash for a little while.
  2. Looks like VIX options are a good way to protect against this one.

    The market is very different in the last few sessions compared to the last few weeks...a lot of shakiness and the lack of ability for the markets to hold a rally is something interesting.

    Thanks for the article.

  3. This market is getting raucous.

    Why won't anyone, including the WSJ, report on the 24% three day decline in China 'B' shares?
  4. ETFei


    I think you also forgot to mention that B-share index was at 175 in april but increased to 380 in less than 2 months, more than 100% in a month. So a 30% correction is nothing much alarming. In fact, we are expecting B-share index to break new high again soon.