I don’t see what the problem is here. Jim Rogers is long China and says this ‘correction’ is normal, since the Chinese market “went up” last year and did very, very well.
The fuck.
“This is insane,” Chen Gang, chief investment officer at Shanghai Heqi Tongyi Asset Management Co., said in an interview on Thursday. “We were forced to liquidate all our holdings this morning,” said Chen, whose firm manages about 300 million yuan ($45.5 million).
The Shanghai Heqi Tongyi manager, whose fund started mid-year in 2015, regretted the timing of its launch and said it “couldn’t be worse.” Chen isn’t alone in criticizing the circuit-breaker rule introduced Monday, which many say exacerbates a liquidity squeeze as investors rush for the exits before trading halts kick in. Under the new rule, a drop of 5 percent suspends trading for 15 minutes, while a decline of 7 percent halts the market for the rest of the day.
“A trading break of 15 minutes or even longer wouldn’t ease their nerves or get them a clear picture of the fundamentals,” said Polar Zhang, a Beijing-based analyst at BOC International Holdings Ltd. “On the contrary, it’s draining liquidity as everybody tries to get out of the door before the door is closed. ”
Nothing to see here. As you were.
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Dude started the fund mid last year? Stocks are sold by salesman worldwide. Wall Street excluded. Saints all.
Armegeddon in world markets
That circuit breaker system has been poorly thought out and implemented. Someone is going to be shot. I’m quite sure of that.
I’m reading the musings of a guy who managed $45 million? Seriously? And he had to shut it down?
The Chinese stock market is a worthless paper tiger. All those fuckers know is how to copy everything we do and they usually do a shitty job.
Maybe, just maybe a China slowdown is not a big deal because manufacturing of quality goods is coming back to the US. China will Get stuck making disposable goods. Have you ever bought anything from China that lasted as long as you thought it should? They excel at making bright, shiny turds.
Word
Still funny