Wow big shocker there. My first thing in the morning was always to check Shanghai, closing up 0.5%-2% like clockwork, every day after day
Chinese Gov't is clamping down on stimulus money and prompted bank loan cash going into Shanghai Composite Index. This is a very serious, bubble-licious situation.
Hang seng back down below 20000, going to be interesting tomorrow. Nice 3% plunge would put some new fear into the bulls. As expected though all bulls will come out tomorrow and say this pullback was necessary to keep the strong, manipulated bull market intact. Remember 483 steps forward and 1/8 step back. Tomorrow is a buying opportunity.
Not many believe in this bubble. As I said before the only way out of this global downturn is to create another bubble. With historical low interest rates and trillions of dollars we will be there shortly.
HONG KONG (MarketWatch) -- Chinese stocks in Shanghai fell sharply Wednesday afternoon as investors rushed to take profits, also sending Hong Kong-traded shares of mainland Chinese companies lower. In extremely volatile moves, the Shanghai Composite plunged as much as 7.7% in afternoon trading, before recovering to trade down 5.1% at 3,264.36 in late action, giving up most of the gains made over the last five sessions. In Hong Kong, the Hang Seng Index fell 3.2%, while the Hang Seng China Enterprises Index sank 4.3%. "The China markets crashed because the markets are at an unattainable level because of hot money and there are fears the central government will act to cool the markets," said Francis Lun, general manager at Fulbright Securities