stock markets
Milan , July 9, 2015 – 07:22
BEIJING – The barrage to stop the bear that had taken hold of Bag in China Thursday has been successful for the first time in nearly a month. The Shanghai Composite Index rose 5.7%, recovering almost the entire -5.9 Wednesday. This is the highest increase in one sitting since 2009. It is still early to say whether the government measures have stopped the panic and stabilized the situation. The state agency “Xinhua”, without venturing into analysis, has seen fit to greet the event with a tweet to 15 o’clock, closing time: “What a day for #azionicinesi! Jumped after the repeated measures of support. ” The enthusiastic tweet was enriched with a picture of a rocket taking off. The state television then showed images from various agencies where the Chinese treat common stocks following the trend as you would in a bingo hall: finally smiling faces. From mid-June, Shanghai and Shenzhen, the two squares of this nominally communist China but in love with the game in the stock market, have seen evaporate three thousand billion dollars of capitalization. So it is too early to rule out that yesterday was just a rebound. Of course, the bazooka shouldered by the government against the Bear fired a series of shots in rapid succession. The People’s Bank of China has entered more liquidity by lending money to the China Securities Finance Corporation (which controls the margin trading on the Stock Exchange) and thus effectively acts as a buyer for the titles by which private investors are fleeing. The large shareholders who control more than 5% of a title has been ordered not to sell for six months. Hundreds of titles are still suspended.
Investigation Police on assumptions attack
It was even mobilized the police according to the” Xinhua “is investigating phenomena of “short-selling malicious.” The fact seems to be the most important promise of the Central Bank to continue to provide “ample liquidity” to support the stock market. There is debate whether this is an action of “quantitative easing” and if so Beijing runs the risk of creating a new bubble after what has just deflated. The newspapers controlled by the Communist Party have interviewed local economists ready to reassure that the measure has no financial risks. According to the reasoning of China, the flow of currency can not be called “quantitative easing” because much lower than that pumped from the US Fed and the Bank of Japan to lift their economies from the financial crisis. But there is another difference, substantial, worries Western analysts: the Fed launched the “quantitative easing” because the money came to the production system by raising the real economy; the People’s Bank of China does to support the securities on the stock market, challenging market. Yesterday, however, it went well: Shanghai has recovered 5.7%, 4.2 Shenzhen, Hong Kong has risen by 3.7.
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China, the stock collapse: investors into a panic. As in? 29
In upward even Tokyo and Seoul
Even Tokyo Seoul resumed 0,6 counting panic that China has stopped. Analysts now say that the intervention of the Chinese government to calm the market, in recent days, was excessive and had the opposite effect, magnifying the wave of panic: after all, if the stock market has lost 30% a month, he had gained 150% in the last year. However, it is now also clear that Beijing is determined to do everything to stop the fall and for example the Asia Investment Team of Union Bancaire Privée, writes in his analysis that “the forecast on China remains positive and the market situation seems possible stabilize soon. ”
9 July 2015 | 07:22
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