VituVingiSana wrote:hisah wrote:China banks lend $209 billion to margin lender to lift stock pricesQuote:China's biggest banks have lent 1.3 trillion yuan ($209.4 billion) to the country's state-backed margin lender to halt a meltdown in Chinese shares, local media said on Friday, underlining the government's determination to support stock prices.
Chinaland gubberment stepping in with massive PPT injection to kill the bears. Short sellers will be crimped badly here.
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.
The stimulus package will only serve to lull the market proceedings for a while probably with a relief rally. Pumping $209billion where $4 trillion has been wiped out in one month may not suffice. The Chinese government is only trying to postpone judgement in a spooked market and at the same time magnifying the carnage that will ensue once it runs out of options.
The main purpose of the stock market is to make fools of as many people as possible.