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

[greengiraffe]

Singapore GIC is picking up bargains, amid the turmoil. Retail investors are influenced more by greed and fear, thus the swing is larger. Volatility usually means opportunities to value investors...

Singapore's GIC sees opportunities in China market turmoil

SINGAPORE (July 30): Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies.

“It did open up some opportunities for people like us which take a longer-term view and we don't have such kinds of liquidity constraints. That is a clear positive," Lim Chow Kiat, group chief investment officer, told Reuters as the fund unveiled its annual report.
...
http://www.theedgemarkets.com/sg/article...et-turmoil

unless they have some sort of clear insider picture in those china companies, it could turn out to be a bad bet like standard chartered. IIRC since 2009 GFC GIC has already bought big chunks of 3 of the 4 top china banks, so they may be trying to add to their positions.

but at least wont end up negative balance like malaysia's 1MDB...

salah liao its Temasek... GICS yet to publicly comment on its strategy on China...

[BlueKelah]

Singapore GIC is picking up bargains, amid the turmoil. Retail investors are influenced more by greed and fear, thus the swing is larger. Volatility usually means opportunities to value investors...

Singapore's GIC sees opportunities in China market turmoil

SINGAPORE (July 30): Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies.

“It did open up some opportunities for people like us which take a longer-term view and we don't have such kinds of liquidity constraints. That is a clear positive," Lim Chow Kiat, group chief investment officer, told Reuters as the fund unveiled its annual report.
...
http://www.theedgemarkets.com/sg/article...et-turmoil

unless they have some sort of clear insider picture in those china companies, it could turn out to be a bad bet like standard chartered. IIRC since 2009 GFC GIC has already bought big chunks of 3 of the 4 top china banks, so they may be trying to add to their positions.

but at least wont end up negative balance like malaysia's 1MDB...

salah liao its Temasek... GICS yet to publicly comment on its strategy on China...

paiseh its Temasek that bought the standard chartered and the BoC and other bank shares last time.

point I am trying to make is investment into China shares which dun have much transparency is much like a bet. Of course with very long term holding power, so long they dont collapse/bankrupt, most big company shares should be worth even more than the initial investment.

[greengiraffe]

Singapore GIC is picking up bargains, amid the turmoil. Retail investors are influenced more by greed and fear, thus the swing is larger. Volatility usually means opportunities to value investors...

Singapore's GIC sees opportunities in China market turmoil

SINGAPORE (July 30): Singapore sovereign wealth fund GIC is finding fresh opportunities to invest in the volatile China market amid restrictions imposed by the regulator on investors who own large stakes in Chinese companies.

“It did open up some opportunities for people like us which take a longer-term view and we don't have such kinds of liquidity constraints. That is a clear positive," Lim Chow Kiat, group chief investment officer, told Reuters as the fund unveiled its annual report.
...
http://www.theedgemarkets.com/sg/article...et-turmoil

unless they have some sort of clear insider picture in those china companies, it could turn out to be a bad bet like standard chartered. IIRC since 2009 GFC GIC has already bought big chunks of 3 of the 4 top china banks, so they may be trying to add to their positions.

but at least wont end up negative balance like malaysia's 1MDB...

salah liao its Temasek... GICS yet to publicly comment on its strategy on China...

paiseh its Temasek that bought the standard chartered and the BoC and other bank shares last time.

point I am trying to make is investment into China shares which dun have much transparency is much like a bet. Of course with very long term holding power, so long they dont collapse/bankrupt, most big company shares should be worth even more than the initial investment.

That I definitely agree with you.

Unfortunately, for SWF management, there is not much choice left... hence even its a con job, they will still have to bite the teeth and hope for the best

[CityFarmer]

CSRC is working hard to find the "culprit(s)"...

China securities regulator asks financial institutions in HK, Singapore for stock trading records - sources

SINGAPORE (July 31): China has asked financial institutions in Singapore and Hong Kong for stock trading records, sources with direct knowledge told Reuters,
widening its pursuit of investors shorting Chinese stocks as Beijing struggles to stabilise queasy exchanges.

Three sources at Chinese brokerages and two at foreign financial institutions said the China Securities Regulatory Commission (CSRC) had asked for trading records in order to identify investors who had taken net short positions against
Chinese stock markets.

Sources said the queries appeared targeted at discovering investor with short positions in offshore-listed exchange traded funds (ETFs) tracking A shares, and short positions in Chinese index futures taken via the Qualified Foreign Institutional Investor programme (QFII) and its yuan-denominated variant RQFII.
...
http://www.theedgemarkets.com/sg/article...ng-records

[CityFarmer]

China stock market bans algo trading? I reckon the reason should be market manipulation...

China stock regulator restricts 24 trading accounts for suspected irregularities
31 Jul 2015 09:40
[SHANGHAI] China's securities regulator said on Friday that it had restricted 24 stock trading accounts for suspected trading irregularities.

The accounts had been found to have abnormal bids for shares or bid cancellations and were thus suspected of affecting share prices or influencing investment decisions by other investors, the China Securities Regulatory Commission said in its official microblog weibo.
...
Source: Business Times Breaking News

[greengiraffe]

Chinese shares have worst month since June 2013
CHAO DENG DOW JONES JULY 31, 2015 6:08PM

China’s main stock index was today down 13 per cent in the month to date. Source: AFP

China shares finished their worst month in over two years after confidence in a government-led recovery wavered.

Shanghai shares closed down 1.13 per cent on today, after the market regulator announced a crackdown on computerised program selling that it blamed for recent volatility, dealers said.

The benchmark Shanghai Composite Index dropped 42.04 points to 3663.73 on turnover of 460.5 billion ($US75.3 billion). The index slumped 10 per cent over the week and 13 per cent for the month.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 0.82 per cent, or 17.54 points, to 2110.62 on turnover of 417.6 billion yuan. It tumbled 9.13 per cent from last Friday’s close.

That makes Shanghai one of the worst-performing indexes globally this month.

Start of sidebar. Skip to end of sidebar.

MOREWhy China’s markets swing late
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Amid the ongoing instability, China’s securities regulator today announced it had launched a probe into automated trading and restricted 24 stock accounts suspected of “influencing securities trading prices,” according to its official website. The investigation seeks to root out possible causes of the recent volatility that has rattled China’s stock market.

Automated trading, which the regulator said had amplified “big fluctuations” on the market, typically involves transactions carried out by computer at high speed on a large number of stocks.

The Shanghai and Shenzhen exchanges had put limits on 24 accounts, without naming the account holders or detailing the restrictions.

The CSRC has already announced probes into “malicious” short-selling — a bet prices will go lower — and what it called “concentrated” selling, which caused an 8.5 per cent plunge in the Shanghai market on Monday, the biggest one-day fall in eight years.

Other moves by authorities in the wake of the falls — which began last month — include banning shareholders with more than 5 per cent stakes from selling stock and funding the state-backed China Securities Finance to buy shares.

China shares have been reeling since Monday’s 8.5 per cent loss, the biggest daily decline in more than eight years, when investors dashed for the exits on worries that government-backed funds might wind down market support.

Shanghai is down 28 per cent since its peak in mid-June, despite fresh rhetoric from the securities regulator that it wouldn’t pull away from buying shares.

The index has rebounded by about just 4 per cent since the deepest point of the sell-off on July 8.

Fluctuating confidence about the government’s role in the market has led to wild intraday swings in recent days. While that’s spooked some investors, others have seen an opportunity to chase short-lived surges while the government appears to be buying in.

“The game between speculative funds and state funds adds to volatility on the market,” said Miller Zhao, analyst at Trade Blazer, a Shanghai-based private-equity firm. “To put in plain language, speculative investors want to take profits from government-backed funds.”

Analysts warned of further volatility in the afternoon trade ahead of Chinese official manufacturing data tomorrow. An early gauge of manufacturing last week could throw doubt on the health state-owned enterprises, according to analysts at IG. “This question might see negative trading in the afternoon as investors close out positions to mitigate that possible risk,” wrote IG analyst Evan Lucas in a note.

Fears that China’s sell-off could spiral beyond the domestic equities market has unsettled the rest of the Asia region in recent weeks. Investors have withdrawn $US12.1 billion from emerging-market Asian equity funds in the last three weeks ending July 29, the largest three-week outflow in more than a decade, according to ANZ Research and EPFR Global, a fund data provider. The withdrawals also come as investors prepare for the Federal Reserve to raise interest rates in the US later this year.

Some $US1.8 billion of that outflow has come from China, which has suffered its deepest market sell-off since the global financial crisis.

Signs of a deepening slowdown in China also have pushed currencies in Asia to multiyear lows this month. Currencies are down, on average, 2 per cent for the month against the US dollar, while the Australian dollar has fallen over 5 per cent over that period and New Zealand’s dollar is down 2.8 per cent.

“(A) n emerging market sell-off will likely be the main theme in (the second half), as the Fed prepares to normalise when China soft lands,” said Stephen Jen, managing partner at London-based hedge fund SLJ Macro Partners. “There is very little that the emerging-market countries can do to avert a further sharp sell-off in their currencies.”

Declines in currencies, in part driven by sluggish global demand and a broadly stronger US dollar, have failed to give a boost to exports. Last week, China signalled it would allow its currency to move more freely, by widening the yuan’s trading ban, another factor pressuring the region’s economies as Chinese goods could become more competitive.

Commodities are another casualty of a stronger US dollar and expectations of a rate increase. Many materials are priced in the currency, making them more expensive for foreign buyers as the dollar strengthens. Higher interest rates in the U.S. also give investors incentive to shift to other assets, as commodities don’t provide any income and cost money to hold.

Gold has sank to five-year lows, and is currently trading down 0.4 per cent at $US1083.70 a troy ounce in Asia.

Concerns about oversupply and weak demand in China, one of the world’s biggest commodities consumers, have weighed on oil prices in recent months, too. Brent crude, the global oil benchmark, is down 21 cents to $US53.10 in Asian trade, ahead of a US government supply report on Friday in the US.

Stocks elsewhere in the region were mixed, with the Nikkei Stock Average flat, as disappointing consumer-spending data offset a better-than-expected inflation reading.

Dow Jones

[greengiraffe]

http://www.smh.com.au/business/markets/c...inf7y.html

Chinese stock market: four ways you could make money from volatility
Date
July 31, 2015 - 3:15PM

Vanessa Desloires
Reporter

There are Asian stocks that are immune to regional macro dramas, HSBC says. Photo: Bloomberg

China's gyrating sharemarket is causing weakness in Asian markets, but HSBC says it is distracting from real opportunities in companies whose growth is resistant to the region's macro events.

HSBC's head of Asia Pacific equity strategy, Herald van der Linde, said there was plenty of opportunity in the "Asian paradox": while markets are weak, there were growth stocks unfazed by the surrounding fireworks.

Aside from China's sharemarkets, other events hindering short-term performance in Asian equities include the impending Federal Reserve rate hike, plunging commodity prices, a stronger US dollar and the slower pace of reform in some countries.

But there were growth opportunities for buyers who looked beyond the short term trouble, Mr van der Linde said.

"Key to these longer-term developments are a potential recovery in profit margins in Asia in the years ahead, growth of 'financial inclusion' and financial assets across the region," he said.

One of the reasons for Asia's recent underperformance had been its poor return-on-equity performance, Mr van der Linde said.

"In the not-so-distant past, 2009 to be exact, operating margins in Asia averaged 14 per cent," he said.

"They have been sliding ever since and are now around 11 per cent."

But he said the worst of the slide was over, with margins set to stabilise and even recover in the next two to three years.

Consequently, Mr van der Linde suggested revisiting Asia's "best in class" stocks – those that stand out with superior management, innovation, brand power, margins and market share:

Alibaba Group
The New York Stock Exchange-listed e-commerce company founded by billionaire entrepeneur Jack Ma has a 49.4 per cent upside to its trading price, according to HSBC's modelling.

It has a "buy" on the stock with a target price of $US124 ($169.94). Alibaba shares were trading at $US80.23 on Wednesday. The company announced this week it would invest $US1 billion into its cloud computing arm to directly compete with cloud behemoth Amazon.

Baidu.com
Baidu Incorporated is a Chinese web services company based in Beijing. Founded in 2000, it listed on Wall Street's Nasdaq index in 2005.

HSBC says Baidu has a 24 per cent upside to its trading price. But the company, often referred to as the Chinese equivalent to Google, was punished on Wednesday after it reported a 3.66 billion yuan profit, which was better than the previous corresponding period, but missed analysts expectations.

Its shares fell 8.7 per cent in after-market trading, to $US180.50.

Beijing Enterprises Water
The Hang Seng-listed water-treatment systems developer fit HSBC's "best in class" criteria with a 33 per cent upside. The company, the largest publicly-traded of its kind in China, has a price-earnings ratio of 23 times earnings with an expected dividend yield of 1.6 per cent.

Lenovo Group
HSBC said Lenovo, which is already a household name for its computers, had an impressive 65.8 per cent upside to its trading price. The Hong Kong-listed, Beijing and North Carolina-based company's share price was about $HK9 ($1.59) on Thursday, but HSBC has a target price of $HK15.20.

[BlueKelah]

China stock market bans algo trading? I reckon the reason should be market manipulation...

China stock regulator restricts 24 trading accounts for suspected irregularities
31 Jul 2015 09:40
[SHANGHAI] China's securities regulator said on Friday that it had restricted 24 stock trading accounts for suspected trading irregularities.

The accounts had been found to have abnormal bids for shares or bid cancellations and were thus suspected of affecting share prices or influencing investment decisions by other investors, the China Securities Regulatory Commission said in its official microblog weibo.
...
Source: Business Times Breaking News

typical propaganda, look for some scapegoats to blame when things look bad. funny no one was caught nor any complains when the index was climbing from 2000 to 5000 within a year.

[FA+TA]

曾淵滄專欄：大鱷幫手打配資？

昨日是新加坡的中國A50指數期貨結算日，滬綜指在下午2時前還是好好的上升，但最後一小時卻插水，倒跌2.2%，恒指也因此受累，原本美國聯儲局議息結果沒有壞消息，也即是好消息，恒指初段高開，但A股無力上升，最終港股也變成高開低走。

A股的期指戰場結束了嗎？可能還沒有，轉倉而成為新的未平倉合約也真不少，國際大鱷仍在試中國政府的底線，國際大鱷不可能打敗中國政府，中國政府可以印鈔票，可以學美國政府那樣搞QE，印鈔票買起股市，問題是中國政府現階段有沒有興趣這麼做。

暫沒有再救市需要

我相信中國政府現階段沒有興趣人為地推高股市，上星期當滬綜指回升至4000之上時，中國監管局已再度發出警告，警告那些場外配資公司不好再搞高槓桿活動，因此A股於7月27日大跌。可能是國際大鱷的搞作，但更大的可能是國際大鱷也很清楚知道，自己的行為不會受到干預才進行，換言之，是國際大鱷在配合中國政府打壓場外配資，要讓高槓桿炒股的人好好地輸錢，才能壓抑瘋狂散戶的高風險行為。

究竟惡意沽空與高槓桿的場外配資，哪種行為可怕？當然是高槓桿的場外配資，這會使中國走向全民破產道路，中國監管當局選擇在滬綜指5000時出手，現水平仍不算低，沒有出手救市的必要，現水平與去年底滬港通未開通前比較仍是很高。若A股因國際大鱷的沽空而成功叫停高槓桿場外配資，那麼國際大鱷賺大錢同時也助了中國政府。

[greengiraffe]

http://www.bloomberg.com/news/articles/2...nipulation

China Market Manipulation Probe Targets Spoofers After Crash
July 31, 2015 — 10:33 AM SGT Updated on July 31, 2015 — 1:29 PM SGT
An investor sits in front of a monitor displaying share prices at a securities brokerage. Photographer: Billy H.C. Kwok/Bloomberg
An investor sits in front of a monitor displaying share prices at a securities brokerage. Photographer: Billy H.C. Kwok/Bloomberg
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Spoofing has become the latest target in China’s campaign against stock-market manipulation after a $3.5 trillion selloff.
The practice, which involves placing then canceling orders to move prices, is suspected in 24 accounts on the Shanghai and Shenzhen stock exchanges, the China Securities Regulatory Commission said on its microblog. The bourses have restricted the accounts and regulators are investigating program traders, who have recently had an “obvious” impact on the stock market, the CSRC said.
China’s focus on spoofing follows a probe of “malicious” short selling, part of the government’s unprecedented effort to shore up investor confidence after a 29 percent tumble in the Shanghai Composite Index from its June high. Spoofing entered the popular lexicon this year after U.S. prosecutors said a London trader’s use of the strategy contributed to the flash crash in May 2010, when American equities briefly lost almost $1 trillion of value. The Shanghai Composite sank 8.5 percent on Monday, its biggest rout since 2007.
“The public isn’t happy about the market plunge so the regulator needs to take some actions as a response, and that’s part of the government’s plan to prop up the market,” said Zhang Haidong, the chief strategist at Jinkuang Investment Management in Shanghai. “Whether it’ll be effective remains to be seen.”
Loss Triggers
Spoofers make money by feigning interest in buying or selling at a certain price, creating the illusion of demand in an attempt to make other traders move the market. The spoofer cancels the original order and buys or sells at the new price to make a profit.
“You could see a huge amount of shares flashing at the bid or offer for one second -- and disappear the next,” said William Wong, the head of institutional sales trading at Shenwan Hongyuan Securities in Hong Kong.
While such trading may have contributed to recent declines in Chinese stocks, the main driver is probably a pullback by leveraged investors, said Zhang. Outstanding margin debt on mainland bourses has tumbled about 40 percent since mid-June, according to data compiled by Bloomberg.
The focus on market manipulation doesn’t alleviate concern that Chinese shares are too expensive, said Michael Every, the head of financial markets research at Rabobank Group in Hong Kong. The median stock on mainland bourses trades at 66 times reported earnings, higher than in any of the world’s 10 largest markets, according to data compiled by Bloomberg. That compares with a multiple of 13 in Hong Kong.
Spoofing “works on the way up and the way down, so it’s interesting it’s only a problem when it causes equity prices to fall,” Every said. “I don’t think this changes the fundamental dynamic that price-to-earnings ratios are unrealistically high in a slowing economy where there are concerns over profits.”

China stock market bans algo trading? I reckon the reason should be market manipulation...

China stock regulator restricts 24 trading accounts for suspected irregularities
31 Jul 2015 09:40
[SHANGHAI] China's securities regulator said on Friday that it had restricted 24 stock trading accounts for suspected trading irregularities.

The accounts had been found to have abnormal bids for shares or bid cancellations and were thus suspected of affecting share prices or influencing investment decisions by other investors, the China Securities Regulatory Commission said in its official microblog weibo.
...
Source: Business Times Breaking News