Hi, I got Similar massages from two of my brokers about few stocks that i am holding : '''" Firm level special maintanance is being changed from 100% to 150% on GOTU ...And this applies to those who are shorting these stocks, for those long stock, it's still at a 100% as you would pay fully for the position """ Could that be short term notice if you are shorting Chinese stocks, specially Education stocks, you will get a short squeeze soon ? I can post screen shot for private, if anyone interested, Just to Watch out guys if you are short, take care
Thanks for the heads up. I've been keeping an eye on them....trading mostly CPNG and BZUN. Wasn't this recent drop part of CCP's plan to make certain stocks cheap so their general/technical affluent population can buy them low to begin wealth creation for a lower to middle class.
There's an old joke.... What's the difference between an Asian stock and a train wreck? ...The train wreck only kills a 100 people.
That train wreck must not have been in India. .... it's nearly impossible to time these but they should explode upward at some point.
No CCP just wants to expropriate some of the funds from private hands into the country's coffer. It doesn't give a s*** about wealth creation for individuals.
Why? Who in their right mind would trust the PRC wealth destroyers? Kind of stupid investing in a country that does not mind blowing up a Trillion dollar stock like BABA or IPO DIDI. The education companies currently have no value and the pumpers promoting them are stuck. They bought high, five x averaged down and are begging the Robinhood and Reddit forums(Elite too) to buy. Wo bu xihuan GOTU!
"Common Prosperity" is the term I was thinking of. CCP cannot be trusted but it's still something that should be paid attention to. https://time.com/6095560/china-common-prosperity "BEIJING, Sept 2 (Reuters) - President Xi Jinping has called for China to achieve "common prosperity", seeking to narrow a yawning wealth gap that threatens the country's economic ascent and the legitimacy of Communist Party rule. "Common prosperity" as an idea is not new in China, but a sharp escalation in official rhetoric and a crackdown on excesses in industries including technology and private tuition has rattled investors in the world's second-largest economy. Xi, poised to begin a third term in 2022, is turning towards inequality after concluding a campaign to eliminate absolute poverty, pledging to make "solid progress" towards common prosperity by 2035 and "basically achieve" the goal by 2050. WHAT DOES 'COMMON PROSPERITY' MEAN? "Common prosperity" was first mentioned in the 1950s by Mao Zedong, founding leader of what was then an impoverished country, and repeated in the 1980s by Deng Xiaoping, who modernised an economy devastated by the Cultural Revolution. Deng said that allowing some people and regions to get rich first would speed up economic growth and help achieve the ultimate goal of common prosperity. China became an economic powerhouse under a hybrid policy of "socialism with Chinese characteristics", but it also deepened inequality, especially between urban and rural areas, a divide that threatens social stability. The push for common prosperity has encompassed policies ranging from curbing tax evasion and limits on the hours that tech sector employees can work to bans on for-profit tutoring in core school subjects and strict limits on the time minors can spend playing video games. read more This year, Xi has signalled a heightened commitment to delivering common prosperity, emphasising it is not just an economic objective but core to the party's governing foundation. Officials say that common prosperity is not egalitarianism. A senior party official said last month that "common prosperity" does not mean "killing the rich to help the poor". read more A pilot programme in Zhejiang province, one of China's wealthiest, is designed to narrow the income gap there by 2025. HOW WILL IT BE ACHIEVED? Chinese leaders have pledged to use taxation and other income redistribution levers to expand the proportion of middle-income citizens, boost incomes of the poor, "rationally adjust excessive incomes", and ban illegal incomes. Beijing has explicitly encouraged high-income firms and individuals to contribute more to society via the so-called "third distribution", which refers to charity and donations. Several tech industry heavyweights have announced major charitable donations and support for disaster relief efforts. Online gaming giant Tencent Holdings (0700.HK) has said it will spend 100 billion yuan ($15.47 billion) on common prosperity. Long-discussed reforms such as implementing property and inheritance taxes to tackle the wealth gap could gain new impetus, but policy insiders believe such changes are years off. A property tax has been discussed for years and two pilots have been implemented in Shanghai and Chongqing since 2011, but little progress has been made. Other measures would include improving public services and social safety net. WHAT WILL BE THE ECONOMIC IMPACT? Chinese leaders are likely to tread cautiously so as not to derail a private sector that has been a vital engine of growth and jobs, analysts said. The common prosperity goal may speed China's economic rebalancing towards consumption driven growth to reduce reliance on exports and investment, but policies could prove damaging to growth driven by the private sector, analysts say. Increasing incomes and improved public services, especially in rural areas, would be positive for consumption, and a better social safety net would lower precautionary savings. The effort supports Xi's "dual circulation" strategy for economic development, under which China aims to spur domestic demand, innovation and self-reliance, propelled by tensions with the United States. ($1 = 6.4622 Chinese yuan renminbi) Reporting by Kevin Yao; Editing by Michael Perry" https://time.com/6095560/china-common-prosperity
Yeah I thought CCP taking out their tech sector was kinda dumb at the beginning, but there is an argument to be made in the face of wealth inequality. I can see antitrust vs Big Tech(FAANG) becoming a real thing this decade.