cabaretvoltaire

China Blows a Double Bubble

Great article on Chinese stock market from people inside:

www.theepochtimes.com/...

Here is cut and paste of "The Truth about China’s Stock Market". Best part is the last paragraph which state thay China’s stock market is like gambling and China’s stock market is manipulated.

The Truth about China’s Stock Market
The truth about China’s stock market is actually not a secret, and most investors probably already knew it. That is, China’s stock market is a tool used by the government to re-distribute and re-organize social wealth on a grand scale, which means that it is a tool to clean out Chinese people’s savings accounts. The biggest winners in this process are, of course, government officials and their relatives who are the most well-informed about the actual value and re-organizing plans of those that control state wealth; as well as institutional investors who collaborate with them and who rely on insider tips to control the stock market. Those people have already made huge fortunes in the process. This is the truth about China’s stock market.

Actually, the goal of China’s stock market was not purely an economic one when it was originally established. When former Premier Zhu Rongji set up stock market in Shenzhen, he said that China’s stock market was meant to get money--to get money in the market and give it to companies that were unable to get money, and because these companies were unable to make money, they needed monetary support.

In Western countries, a fundamental criterion to allow a company to be listed is that the company must have performed well for at least three years while meeting other standards. The company must obtain approval from the Securities Regulatory Commission prior to issuing stock. Under supervision, the issued stock can also be pulled from the market to ensure and safeguard in particular small and medium sized investors.

China’s stock market has been established to operate like an ATM for the listed companies. For the majority of the listed companies, economic reform is nothing but a mechanism to trap money. Many heavily indebted State-owned companies have been listed in the stock market after re-packaging. All of a sudden, they become the new stars in the market with easy loans and finance. The foundation of a stock market is the listed companies. With a weak foundation, how can any high stock price be affordable? The deflation in stock prices is therefore predictable.

Other than the fact that the listed companies would benefit from the weak structure in the Chinese stock market, the true “beneficiary” of this contrived structure is the “interest group” who would profit from the initial establishment of a listed company and the trading thereafter. As for the investors, China’s stock market serves to mentally “entertain and exercise” them. It gets investors far more emotionally involved than any intellectual game could hope to.

In an interview after the market dived for several days prior to the Olympics, economist Tang Min points out that, “No economists can make sense of China’s stock market.”

“I’d advise the investors to give up the illusion that the government would restore the stock market or that the market will rebound. Escape China’s stock market while you can. If you insist on trying to profit from it, go ahead. However, do not complain if you are drained empty.”

Some say that entering China’s stock market is like gambling. That would be over-estimating the capacity of the Chinese stock market. Gambling relies on luck, and sometimes strategies—it still has fairness in it. However, China’s stock market is a manipulated and systematic black market. The majority of Chinese investors seem to have gradually recognized this. This could suggest that the end of this massive robbery is near

China Blows a Double Bubble

Faber recommends investing in Chinese stock market? Got links on that?

As for Mobius, his job at Templeton for last 15+ years has been pumping or more like pimping Asian stocks and his own mutual funds with little to show in terms of performance.

As for Rogers, let's just say he is getting senile in love with commodities and we all know what happened to commodities last summer and what is about to happen soon for the 2nd time. Bet he is shorting it now.

PS - Duh - Cu inventory dropping in London is due to stockpiling in China.

Irrational Despair Is Creating Great Buying Opportunities in Two Chinese Companies

LOL, you claim to be guru of PRC's market? Say didn't I run into you at SZ redlight district with your hat and shades Mr. Con-man?

Making bundle with FXP Ultrashort Xinhua ETF!

The Deal's Getting Done, But Will It Work?

Market intervention is merely extending the the sick market. It doesn't cure it and just makes it more excruciating grind to the bottom.

We ought to let market do it's thing even with threats of depression from Paulson/Bernake/Bush the very people who contributed to this crisis.

So let the bottom fall out for quick across the board climatic selling and let the market determine the value of bonds and stocks.

Emerging Markets Ready to Re-emerge - Barron's

El-Erian may be right but I think too early to recommend buying into the emerging market. It's like catching a falling knife with bear rally along the way. Better wait for bottoming out process or confirmed breath-thru from bottom than to get in early.

Will RIM's Gamble Pay Off?

Can RIMM survive and thrive on fickle consumer market dominated by Apple, Samsung, Nokia and even Palm? I'd say no and they'll have to defend against the big boys encroaching the lucrative corporate market. You can bet that Symbian and Microsoft along with Nokia and Samsung will be subsidizing the corporate as well as consumer market (cash strapped).

I bet Apple is working on "cheaper" iPhone. My company began to switch over to iPhone and can't wait to get mine early next year. We went from Treos to Blackberries to now iPhone.

Every dog has it's day and it's all down hill for RIMM IMHO.

Positive Divergences Continue to Stack Up

Yeah pump and pimp self serving unproven DWA "indicator" by his pal. So what does mega cap GE and RIMM have in common with soon to get slaughtered small cap?

Pump it boys as I sit back and enjoy Russell 2000 get slaughtered and profit via my 6 figures stakes in Russell Ultra Short TWM.

RTC: Creating a Big Bad Bank

Per MSN:

"But there were few details on the idea. Getting such a company started would require approval from Congress."

Get it? "New" RTC require congressional approval.

Will worthless SEC investigate who was buying huge blocks of stocks hour before CNBC "news"?

A Resolution Trust Corp. 'Solution'?

Per MSN:

"But there were few details on the idea. Getting such a company started would require approval from Congress."

Get it? "New" RTC require congressional approval.

Will worthless SEC investigate who was buying huge blocks of stocks hour before CNBC "news"?

A Resolution Trust Corp. 'Solution'?

MANIPULATION orchestrated by Paulson to rescue his Wall Street pals.

Whatever happened to the capitalism we exhort to other countries when Paulson the socialist (AKA commie) nationalizing his wall street buddies?

Why rescue these fatcats who took the risk and made money before the credit crisis debacle get away from the their loss?

Over my dead body! I'm going to raise hell with my congressmen and senators!

Is the China Growth Story Coming Unglued?

WARNING!

Read this article published yesterday and see why PRC market is for gamblers and the why the "house" AKA the communist party will win at investors loss of course.

Here is the link to the Epoch Times article:

The Root Cause of China's Recent Stock Market Decline

Great Read!

en.epochtimes.com/n2/c...

China: What Comes After the Olympics?

Here is the link to the Epoch Times article:

The Root Cause of China's Recent Stock Market Decline

Great Read!

en.epochtimes.com/n2/c...