Monday, January 19, 2015

Chinese Stocks Are Getting Obliterated (Business Insider)

Based on actions in Forex and now stocks, it may be time to review your trading strategies.


This is the article heading used by Business Insider today to describe the action on the Shanghai Stock Exchange today.

Here is the chart they published showing the carnage.


According to the South China Morning Post, three major brokerages were banned from opening new margin lending accounts for three months, causing the slump. The brokers would usually offer people opening accounts a multiple of their money to invest with (at a hefty interest rate), but they won't be allowed to now.
Here's more from the SCMP:
"There had been a guessing game on the level of tolerance by the regulator on margin trading," said Pan Hongwen, an analyst at UBS. "The regulator obviously wants to see the index rise at an orderly pace.
"Therefore, it would take a harsh stance on margin trading to prevent a hefty increase of the market."

******

Whether this shakeout will be contagious is difficult to establish at this time.

So far, direction for the Shanghai Composite seems to be north as shown by this Point & Figure Chart.  One proviso, the chart uses data to the close January 16.





I have gathered a number of articles that may interest you, some will be similar in content as news sources are limited.

Chinese Stocks Are Getting Crushed - Business Insider

 Mon, 19 Jan 2015 03:24:05 GMT
Moneycontrol.comChinese Stocks Are Getting CrushedBusiness InsiderStocks in Shanghai are tanking soon after the open with the composite down 5.31%, 179.44 points at 3,197.06. Market chatter is that this is a result of the Chinese regulator barring 3 ...

Read more ...


Crude Oil Drops on Iraq Output While Swiss Stocks Advance - Bloomberg

 Mon, 19 Jan 2015 15:44:44 GMT
BloombergCrude Oil Drops on Iraq Output While Swiss Stocks AdvanceBloombergThe Shanghai Composite Index fell 7.7 percent and China's credit risk rose to a 10-month high. Japan's 10-year bond yield dropped to a record. The franc fell against the euro ...

Read more ...


Markets come off day's high; Shanghai Composite drops 8% - Business Standard

 Mon, 19 Jan 2015 07:31:16 GMT
Financial ExpressMarkets come off day's high; Shanghai Composite drops 8%Business StandardBenchmark indices have come off day's high but are trading firm in the noon trades on the back of strong quarterly numbers posted the companies with Wipro and R ...

Read more ...


CS1300 Index – 7.7% at 3355.16 - ForexLive (blog)

 Mon, 19 Jan 2015 07:23:05 GMT
CS1300 Index – 7.7% at 3355.16ForexLive (blog)Mike Paterson has more than 30 years of experience trading FX including key market-making roles as a senior spot trader with UBS and Credit Suisse. He was also head of FX at the State Bank of Victoria in ...

Read more ...


Shanghai Composite sinks as financial, property stocks slip - Moneycontrol.com

Mon, 19 Jan 2015 02:27:30 GMT
Moneycontrol.comShanghai Composite sinks as financial, property stocks slipMoneycontrol.comShanghai Composite sinks as financial, property stocks slip. Japan's benchmark index pared gains after breaching the 17,000 level earlier in the session. Still ...

Read more ...


Chinese Stocks Are Getting Obliterated - Business Insider

 Mon, 19 Jan 2015 13:19:14 GMT
Chinese Stocks Are Getting ObliteratedBusiness InsiderShanghai's composite index of the biggest stocks in China just had its worst day since the middle of 2008, when the financial crisis was still getting into full swing. The index, which was a world ...

Read more ...


China stocks suffers most since 2009 on margin trading, Shanghai Composite ... - Customs Today Newspaper

 Mon, 19 Jan 2015 05:46:55 GMT
Customs Today NewspaperChina stocks suffers most since 2009 on margin trading, Shanghai Composite ...Customs Today NewspaperThe Shanghai Composite Index (SHCOMP) sank 6.3 percent to 3,163.72 at 11:30 a.m. local time, poised for the steepest drop sinc ...

Read more ...


Chinese Stocks Plunge Most in Six Years on Lending Curbs - Bloomberg

 Mon, 19 Jan 2015 01:49:14 GMT
BloombergChinese Stocks Plunge Most in Six Years on Lending CurbsBloombergChinese equities plunged the most in six years, led by brokerages, after regulatory efforts to rein in record margin lending sparked concern that speculative traders will pull ...


Read more ...





No comments:

Post a Comment