China stocks in meltdown as Asian markets spooked

[GennGreymane]

http://www.aljazeera.com/news/2015/0...022052500.html

Chinese shares plummeted more than eight percent within an hour of trade on Monday in the face of a global sell-off, despite Beijing authorising its state pension fund to invest in stocks in its latest attempt to shore up markets.

The plunge in China's equities followed last week's losses of 11 percent, and hammered stock prices across Asia, as fears grew that a slowdown in China sould send the rest of the world into a recession.

You don't need to be an economist to understand that there are some very strange things happening in the Chinese economy.

Adrian Brown

Hong Kong's benchmark Hang Seng Index dropped more than four percent in the first few minutes of trade, the Australian market dived three percent, while Japanese and Taiwanese markets were routed more than two percent.

More than $5 trillion has been wiped off the value of global equities markets since China's shock devaluation of the yuan on August 11 sparked fears the world's second-largest economy is weaker than thought.

Al Jazeera's Adrian Brown, reporting from Beijing, said "you don't need to be an economist to understand that there are some very strange things happening in the Chinese economy".

He said all of the measures taken by the Chinese government, including spending billions on share buy-backs, and Sunday's announcement that it would invest state pensions in the market to offset the declines, were not working.

"Billions of dollars of state workers' money are now being used to prop up the market, but not only is the market falling, China's economy is also slowing," our correspondent said.

"China was seen as the engine of global growth but now the outside world is beginning to understand that it is slowing down."

Our correspondent said malaise on the markets could continue as investors awaited US GDP figures set for release this week, and a decision on whether the US Federal Reserve would lift interest rates.

Falls follow Wall Street

Monday's falls followed heavy falls on Wall Street on Friday, with the Dow Jones Industrial Average posting its worst single-day session in four years and all benchmark indices losing more than three percent.

"The market is going to drop further. It's normal as the markets across the whole world are falling," Qian Qimin, an analyst from Shenwan Hongyuan, told AFP.

"Financial risk will likely rise quickly, dampening market sentiment," Ken Chen, KGI Securities analyst, told Bloomberg News.

"Government intervention won't be able to stop the market correction in the long run."

[Thepersona]

so a recesion is looming in the horizon. it's been 8 years from the last meltdown (with the EU never really recovering) and 8 years away from that (if i remember, the asian crisis was on 1998-1999).
so, selling dollars of buying them?

[Hooked]

The dow jones is also down and could plummet.

[Deleted]

so a recesion is looming in the horizon. it's been 8 years from the last meltdown (with the EU never really recovering) and 8 years away from that (if i remember, the asian crisis was on 1998-1999).
so, selling dollars of buying them?

Time for the EU to get rid of the refugees before it's too late.

[Thepersona]

Time for the EU to get rid of the refugees before it's too late.

sorry for being too homo economicus but couldn't they be cheap labor?

[Realtalk]

The dow jones is also down and could plummet.

Will plummet. 9hrs from now the bloodbath will start. I'd guess 600-700 points atleast.

[Thepersona]

Will plummet. 9hrs from now the bloodbath will start. I'd guess 600-700 points atleast.

at which hour the US stock market opens?

[Tierbook]

Will plummet. 9hrs from now the bloodbath will start. I'd guess 600-700 points atleast.

Maybe..... recent data shows the US economy is doing decently,

A fresh batch of reports this week is likely to underscore the Jekyll-and-Hyde performance of the economy. Consumer spending and sales of new homes probably rose at a healthy clip in July, for example, and U.S. growth in the second quarter is likely to be revised sharply higher to around 3.5%.

- - - Updated - - -

at which hour the US stock market opens?

9:00 or 9:30

[Toijin]

ASX down 158 points as of this post. not looking good...

[Tierbook]

I think China closed the Shanghai index it hasn't moved anywhere in awhile.

[Skroe]

The world deserves this. It bought into China's crap for over 15 years. It knew it's numbers were bogus. It it kept sticking it's fingers in it's ears and pretending nothing was wrong. Because whoring out ourselves to China was easy money.

And now it looks like it's going to take Chinese pensions with it.

http://www.bbc.com/news/business-34033208


China's rise is over. Here's hoping some actual true numbers come out in the next few years. It's going to be real funny when the decade of 10-12% annual growth was closer to 4-6%, and China has barely grown at all, or may in fact be in recession, the last year.

[Tierbook]

Ahhh seems like they were just on break for an hour or so i guess, stocks are continuing down that at a slower pace, -.25% since they resumed

[Hooked]

I think China closed the Shanghai index it hasn't moved anywhere in awhile.

The suspended selling for like 3 months, but you can still buy. Not that anyone would buy and everyone would sell if allowed to.

[Tierbook]

Everytime I refresh bloomberg it drops a dollar.

[Spraxle]

Be 'interesting' to see how this plays out. But if the Chinese market(s) collapse it should affect every other market (except maybe Iceland since they did real change to their banking stuff after the last round of this 8~ years ago). Not good... and gas prices were about to drop which would have stimulated growth to a degree since cheaper fuel = more money to spend on other things. And cheaper fuel means more travel so people are spending more. Bleh.

[Kokolums]

Its a different world now. This is the first time that China has melted down since it became a huge economic player. They are the factory of the world. No-one really knows how that will play out. How does this effect the rest of the planet? Does it just cause global markets to correctly badly for a few weeks, or does it send everyone into a full blown recession? I have no idea. I hope it works out ok.

[Skroe]

Its a different world now. This is the first time that China has melted down since it became a huge economic player. They are the factory of the world. No-one really knows how that will play out. How does this effect the rest of the planet? Does it just cause global markets to correctly badly for a few weeks, or does it send everyone into a full blown recession? I have no idea. I hope it works out ok.

The biggest danger is China's immense corporate debt. That is the root of the problem.

Wouldn't be surprised if this spirals from a stock market panic to a full blown liquidity crisis. The entire point of getting people investing in the stock market last year, and then stock market management the past year, was to give an escape route to Chinese corporations that owe immense debts that they can't pay (which is to say, most of them).

And now the Chinese Government is raiding pensions to prop it up? Thus taking those with the crash as well? These are the acts of panicking people who are improvising.

Basically, get ready for Lehman Brothers 2015: China Edition, except worse, because it's huge swathes of the Chinese economy, not just a handful of major players in the US Financial sector.

[Noblia]

Ah who cares... You're still going to keep buying crap you don't need... If your retarded you will still end up impregnating some crazy B!... and you're still going to borrow all the money you can just so you can keep doing these things. Capitalism at its best.

[Hooked]

Ah who cares... You're still going to keep buying crap you don't need... If your retarded you will still end up impregnating some crazy B!... and you're still going to borrow all the money you can just so you can keep doing these things. Capitalism at its best.

Capitalism is being able to buy anything with currency. I prefer capitalism because at least you retain some small amount of control over your own path in life. With socialism you are put into a box for storage and given a number. You are basically surrendering your spirit and individuality in socialism. Socialism is like a prison without bars.

[Fugus]

Capitalism is being able to buy anything with currency. I prefer capitalism because at least you retain some small amount of control over your own path in life. With socialism you are put into a box for storage and given a number. You are basically surrendering your spirit and individuality in socialism. Socialism is like a prison without bars.

You really need to actually educate yourself on what socialism is.

Your comment was so off and exaggerated, it reminded me of a Family Guy skit.