shanghai exchange

The Lesson In China: Don’t Go Bubble In the First Place

There can be no mistaking that Chinese stocks are in a bubble. Since November 21, the Shanghai SSE Composite index has risen more than 100%. Going back to July 22, the gain is nearly 145%. Those dates are not random coincidence, as they mark specific points of PBOC activity. The stock bubble in China is certainly a monetary affair, but [...]

China Literally Does It Again

By Jeffrey P. Snider|2015-04-20T16:37:59-04:00April 20th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

The fact that China did something will always be treated with hyperventilation, but lately that includes an almost bi-polar nature. Last week, the PBOC branch in Shanghai made what looked to be a “tightening” gesture upon Chinese stocks, ordering commercial banks, in a memo, to check for risks in margin debt. They also banned margin on unregulated accounts and “suddenly” [...]

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