Why do the Shanghai and the Hang Seng continue to bleed?

Discussion in 'Trading' started by Port1385, Aug 12, 2008.

  1. I thought the Olympics would bring great national pride and economic growth to China? These two Chinese indexes appear to be undergoing their own version of 1929. Why the crash? Why?
  2. Everything is priced in already? Stocks move first followed by the news.
  3. laputa


    Most ppl in china were thinking exactly the same. Always fade the majority...
  4. Correct. The most obvious side of the trade is usually the wrong side.
  5. It's a shame that the FXI's correlation the the Shanghai market sucks.

    Shanghai is down roughly 33% since the middle of March and the FXI is flat.

    Would be great to get a true market tracking ETF.
  6. Actually, the csi 300 at 2381 is looking very attractive. I'm going to start scaling into hoping to build the bulk of the position if it hits 2000.
  7. How are you able to trade that index?

  8. Also, the speculation is that after the Olympics, construction spending on infrastructure among other things will slow down. Plus property prices will start to decline once the Olympic hype is gone.

    People are just rushing to the exit in droves. My guess is after the olympics, we'll start seeing the SSEC and HSI bottom out.
  9. I think this trade is getting crowded already as it made it to the mainstream media.
  10. Daal


    use CAF
    #10     Aug 13, 2008