Bloomberg: U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices

[corydorus]

The Timing of this announcement coincides with yesterday another -7+% shanghai index drops. Clearly the Central is worried that the Market has Burst.

"China Cuts Interest Rates, Reserve Ratio in Bid to Stem Slowdown
June 27, 2015 — 5:30 PM SGT
Off-Balance Sheet Lending Pumps Up Default Risk
Nelson Ching/Bloomberg"

[greengiraffe]

It is part of a bigger plan. CCP already knew that mkt fluctuates and when you have a people movement not unlike that of the Great Leap, it is part of the script of a grand scheme that is still unfolding...

Just sit back and watch the drama...

The Timing of this announcement coincides with yesterday another -7+% shanghai index drops. Clearly the Central is worried that the Market has Burst.

"China Cuts Interest Rates, Reserve Ratio in Bid to Stem Slowdown
June 27, 2015 — 5:30 PM SGT
Off-Balance Sheet Lending Pumps Up Default Risk
Nelson Ching/Bloomberg"

[specuvestor]

I'm pretty baffled why a market correction is not expected when the govt already started to clamp down like 6 months ago starting with the pseudo-umbrella fund structures.
http://www.valuebuddies.com/thread-5531-...#pid105795

I don't think we can claim that govt is reacting to the "unforseen" decline. If anything we can only blame the govt execution sucks.

And I don't think it sucks. As posted before, RMB interestrate has to converge with US in order to internationalise on a level field to minimise unintended consequences.

While commentators are, well commenting, the Chinese authorities are acting. And for some bizarre reason the shanghai market is still ignoring the govt effort to cool down the stock market, bizarre because they seemed to have short memories of govt accomplishing what they say they will do, I'm pretty sure the govt will succeed and in the short term I wouldn't be too bullish on China stock market

And as usual when the market crack, commentators will blame the govt, adding this to the irony list. That's why they are commentators.

The short term correction is here. Let's see what the commentators will say

What investors will do in a correction will be up to their risk tolerance and timeline. Both buys and sells can be valid depending on your timeline

A healthy correction is need. IMHO, CCP has yet to finish with their economic restructuring efforts in China... far from it... Akan Datang

If there is a 3-stage bubble, I think we are roughly end of Stage 1

By the time CCP finish restructuring we will be in stage 3 where the risk/reward will become more speculative and nonsensical.

I certainly concurred with you on the scenario analysis.

We shall continue to monitor how the script pans out...

[BlueKelah]

perhaps with the greek crisis, china markets will finally crash.

it would have retraced 20%+ of its recent high if SSE does end in the red today. that is basically a correction.

if down by 30%+ next weekend can consider a crash liao...

[corydorus]

China even with 30% down, YoY is still ... double up. It will have a lot of room to go.

Frankly i do not understand why Greece matter to the world. Any sentiments due to it, is good opportunity for investor.

[greengiraffe]

Neither do I, I m keeping my calm and still buying... no worries.

GG

China even with 30% down, YoY is still ... double up. It will have a lot of room to go.

Frankly i do not understand why Greece matter to the world. Any sentiments due to it, is good opportunity for investor.

[opmi]

Was catching falling knives this morning.

[greengiraffe]

that is what value investment is all about... isn't it

Was catching falling knives this morning.

[BlueKelah]

whilst China stock index has been down 20%+ in the past couple weeks, STI in fact has not really been beaten down that much, only down slightly more than 1% today. even considering recent highs at 3500+, it is down less than 10%.

So the tide has not really gone out for the SGX yet. Buying on small dips and selling on small rises is more akin to short/medium term trading which does not fit into my interpretation of value investing. Will start buying when more convincing value emerges.

Can't say the same for China though, the recent correction may be presenting longs with a good entry point.

[greengiraffe]

STI is dead... the basket of stocks is being manipulated with Jardine Group the main movers. Apart from Jardine Group will be the banks, telcos and other blue chips.

Taking out the main movers, the rest of the mkt is dead. It is IMHO a reflection of the structural issue facing the local economy, the inability of SGX to attract good quality listings since GFC.

A good government has also crowded animal spirit and deprive local bourse of good quality listings.

Whilst it is true that SGX may have attracted biggies like Hutch Port - so far the track record basically reflects a dumping exercise by Superman.

Anyway, MAS has already make its stance on the recent complains by all interested parties - there is nothing wrong... they don't care less... even regulatory concerns are not their problems... as usual, they will take all the credit and when things go wrong, we are all to blame... doesn't sound all too familiar...

Just be wary of new listings as SGX has turned into a convenient dumping ground for the fun mgrs and people looking to cash out...

For mainland, there is no doubt it is a big casino. At least there are excitement and hope... here we are all hunting high and low for... dunno what...

GG

whilst China stock index has been down 20%+ in the past couple weeks, STI in fact has not really been beaten down that much, only down slightly more than 1% today. even considering recent highs at 3500+, it is down less than 10%.

So the tide has not really gone out for the SGX yet. Buying on small dips and selling on small rises is more akin to short/medium term trading which does not fit into my interpretation of value investing. Will start buying when more convincing value emerges.

Can't say the same for China though, the recent correction may be presenting longs with a good entry point.