China's crashing again

[neilgin1]

very bad news

http://www.zerohedge.com/news/2015-07-2 ... limit-down

[beauanderos]

so 765 companies on the Shanghai Composite hit their daily down limit of ten percent and trading halted. What happens to all of the stop losses that were hit but couldn't be sold?
The margin calls on holdings that couldn't get sell executions?

The market will continue a steep decline tomorrow, once all the waiting orders trigger at the open.

May be some dead cat bounces along the way, but kinda doubtful.

FXP

[InfleXion]

This looks serious, 8.48% drop in a single day Glad I bought metals last night and didn't wait, but this could cause an even greater buying opportunity... blood in the streets. Talking heads like to point out that there is very little of the US market share invested in China, but what they fail to mention is how much of China is invested abroad. If they have to liquidate positions elsewhere to cover losses then contagion is still a concern.

[beauanderos]

Likely that at least some, if not a majority, of small shareholders in China hold precious metals as well. Given that the banks there recently recognized gold as collateral
against margin lending, there could be some washout from that occurring. Probably no more than a ripple however, as I'm sure there are plenty of strong hands in China
to snap up any loose metal.

But... this remains another opportunity for those who like to paint the tape to commit further nefarious deeds.

[neilgin1]

This looks serious, 8.48% drop in a single day Glad I bought metals last night and didn't wait, but this could cause an even greater buying opportunity... blood in the streets. Talking heads like to point out that there is very little of the US market share invested in China, but what they fail to mention is how much of China is invested abroad. If they have to liquidate positions elsewhere to cover losses then contagion is still a concern.

Flex, I saw you post that earlier, NICE timing, my bru......back to China, yeh, that was a real bad sell off, and i'm going off the top of my head, but over the last six months, maybe more, the chicoms been very quietly dumping Treasury paper, to the tune of 500 billion with a b USD, and not making much noise about it. US main stream media's isn't highlighting it either....why would they?...that might mean everything aint okay, and we wouldn't want that truth to spread, would we?

US equities AND commodities traded real strange today, ie, take equities, they traded down, and then just meandered in a band, almost as if some entity would come in and NOT let them sell off too bad, same thing with every commodity market, nat gas being the exception....midday my legs swole up tighter than dick's hat band, and I had to go see my doctor, so i'm heavily medicated....serious (my view is this, when it says "take 1 tablet every six hours", I take 3.....why not?....when you're nailing a nail, you don't tip tap that bad boy, you take that hammer and POUND IT...am I right?).....so i'm gonna exit left, because I don't know what the mod's stance is on PWI'ing, and I don't want to violate any rules that exist. Without rules, there is no order, only chaos, which is not the right path, so I remain, your colleague, n.

[InfleXion]

I read somewhere on ZH that the amount of US Treasuries dumped by Belgium recently also matched the amount that China reported as reducing their exposure by in that same time period, as though they are dumping USTs via proxy through Belgium to avoid tipping too many people off.

A couple years back China stepped in and saved the EU by buying up a bunch of their debt, which gave me the impression they were vested in maintaining the status quo, likely to keep acquiring cheap gold, which I don't believe for a second they've fully divulged the quantity of.

If it's just a matter of needing it for liquidity in rough times that's one thing, but it does seem like it's been a concerted move away from US debt lately which makes me wonder if China has decided the West has served its purpose.

Sure, things look a lot worse for China right now, but the global economy is interconnected. Remember the golden rule.

[theo]

This looks serious, 8.48% drop in a single day Glad I bought metals last night and didn't wait, but this could cause an even greater buying opportunity... blood in the streets. Talking heads like to point out that there is very little of the US market share invested in China, but what they fail to mention is how much of China is invested abroad. If they have to liquidate positions elsewhere to cover losses then contagion is still a concern.

Yes, China has increased their involvement in the global economy exponentially over the last ten years. I continue to hear stories about their growing presence in Africa. Anybody who thinks that a Chinese market crash won't have serious implications around the world is fooling themselves. Does anybody know how the Asian markets opened?

I bought a few ounces yesterday and was surprised to find 90% ag selling at 12 Xs face. I also picked up a few Buffalo rounds at $17 each.

[InfleXion]

http://www.zerohedge.com/news/2015-07-2 ... eassurance

“China’s market is so distorted, you can’t sell short very confidently and you can’t buy up very confidently either," warns one Hong Kong-based asset manager as despite massive "measures" and manipulation, Chinese stocks extend yesterday's stunning losses (CSI-300 -5% at the open, Shanghai -4.1%). As Bloomberg reports, investors “are concerned and lost," although government officials tried to claim the situation by explaining they will "continue efforts to stabilize market and investor sentiment, and prevent systemic risk." As stocks continued to fall, the market is summed up by the opposing views of one broker noting "China won't tolerate a worsening stock market, so those state-backed financial institutions may start buying," and another who warned "it's hard to start a new up move after a bubble bursts... I don't think they are able to prevent it falling."

[68Camaro]

Their ppt will manipulate it up...

[Cu Penny Hoarder]

Their ppt will manipulate it up...

Most likely. They will also ban selling and shorting.

Chinese stock market... what market?

[InfleXion]

It looks like the Plunge Protection team has done their job for now, if you can call only losing 1.7% a success. Selling banned for people holding more than 5% of a major company. Shorting banned. If anybody has ever heard of Greg Mannarino his YouTube videos and Seeking Alpha articles are spot on. As he pointed out in one of them, the sole purpose of markets is to determine fair market value, and anytime there is intervention of any kind the result cannot be good.

[silverstacker]

This looks serious, 8.48% drop in a single day Glad I bought metals last night and didn't wait, but this could cause an even greater buying opportunity... blood in the streets. Talking heads like to point out that there is very little of the US market share invested in China, but what they fail to mention is how much of China is invested abroad. If they have to liquidate positions elsewhere to cover losses then contagion is still a concern.

Yes, China has increased their involvement in the global economy exponentially over the last ten years. I continue to hear stories about their growing presence in Africa. Anybody who thinks that a Chinese market crash won't have serious implications around the world is fooling themselves. Does anybody know how the Asian markets opened?

I bought a few ounces yesterday and was surprised to find 90% ag selling at 12 Xs face. I also picked up a few Buffalo rounds at $17 each.

Closer to 13x or 13.5x in the right area. Amazing isn't it?