Late to the party, it seems...

@afro you are seriously misadvising guys. The Shangai exchange and the chinext are overcooked beyond what is reasonably plausible-talk of p/e's of 300. The fallout however is the one guys should be looking out for as it is bound to be apocalyptic. The fallout should also help gauge the impact of the Chinese stock markets in the global economy.

In two short weeks since this thread was put up chinese stock marts have all sunk into bear territory losing 20% or the equivalent worth of the Spanish stock exchange. This is even after interest rate cuts to prop the markets.

However, the real stampede is yet to commence and when it does the bloodbath will be massive.

BREAKING: Another 173 firms announced to suspend trading tonight - in total 942, or 1/3 of all listed firms in China stock market are halted


things are thick in china stocks, any wazuan trading their to give us the real experience?

The Chinese market will not crash. China is simply going through a fourth wave correction. People who got in at the top of wave three (the strongest and broadest portion of the Elliott Wave) are the ones crying foul because they didn't anticipate a fourth wave drop.

If you want to invest in China you are better off following Elliott Wave International's 'The Asian Pacific Financial Forecast' by Mark Galasiewski.

link

China's Stock Market Roller Coster Ride Continues

All the best.

Its called pricking a bubble.
Soon you'll see police patrolling shanghai stock exchange

Today, NYSE has been down for hours due to a "technical hitch".Is this the beginning of the collapse of global equities?

The Chinese government orchestrated the whole thing when they urged people to get loans and invest in the stock market. They even lowered interest rates to a record low so people would be lured in getting loans. This as we all know is pure risk, and Chinese banks are susceptible to a crash if the market continues the trend. Major American banks are also exposed but not by much. Good thing is few foreign investors have direct exposure to these stock markets coz China still limits the amount of overseas investment.

Majority of the people affected are the Chinese themselves, who own stocks of small companies. Since most of them did margin trading (buying stocks with borrowed money) there's an accelerated sell off to recover capital and we all know how that goes. In a country on 1.5B people, there are only 90 million trading accounts, it will take more bleeding for the downfall to affect other markets. If it does, countries like Australia and Hong Kong will be the first to bleed. Be sure to enter at the bottom of the wave.

Though the market will start a slow decline after that unless the firms being supported have real earnings. Slow punctures make investors complacent and they start trying to average down based on PAST purchase prices vs fundamentals.

It is a losing strategy though HK and Singapore did well but they stepped in to prevent massive fallout [from the Global Financial Crisis] rather than just support high prices. Or they were lucky.

In Kenya, the government should be divesting not adding to their portfolios. It's tough love but necessary. Look at KQ. Or Mumias. Or Panpaper. Or NBK.

KCB started recovering after GoK reduced its stake & private investors [Mbaru, Kirubi, Sunil Shah] started acquiring large stakes and making changes.

KenGen will be the next test for GoK. I feel they should go for PPPs and convert loans to equity (non-cash) but NOT give more cash to KenGen.