The Law of Gravity impacts the Chinese stock market

China has spent around Rmb860-900bn to support the stock market

From Goldman Sachs China musings:

How much has the government bought in the market? 

The Chinese government's recent measures to support the domestic equity market through the so-called 'national team' institution are being frequently discussed by investors and in the media. In this commentary, we estimate the amount of money the 'national team' has spent to support the market, the remaining capital left available for use, the sectors that have likely benefited from government support, the potential overhang on the equity market from government support measures, and our views on the equity market over coming months.

We estimate the 'national team' has spent around Rmb860-900bn to support the domestic equity market.

China: Asks for stock trading records from Chinese and foreign brokerages

HONG KONG/SHANGHAI (Reuters) – China is asking foreign and Chinese-owned brokerages in Hong Kong and Singapore to hand over stock trading records, sources with direct knowledge of the requests told Reuters, extending its pursuit of investors shorting Chinese stocks to overseas jurisdictions.

#stockmarket #shorting #stockbroker

Investor Alert: China Agritech

China Agritech: Factory Visits Reveal a Scam


Based on our research, which includes factory visits and discussions with customers, competitors, and government officials, as well as examinations of Chinese financial filings, we think that China Agritech does not have a currently functioning business generating anything close to $100 million in revenue. We’re very confident that the company is a scam.


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NYT: China: Shanghai Shares Tumble 6.75%

Shanghai Shares Tumble 6.75%

By MARK McDONALD

HONG KONG — The Shanghai composite index plunged 6.75 percent on Monday to close out August with a drop of 21.8 percent, the worst performance for the month among the world’s major exchanges.

Monday’s fall, coupled with a drop of nearly 3 percent last Friday, has made for “a huge, huge decline,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong.

The overall index was down 192.94 points on Monday to finish at 2,667.75, the lowest closing figure in more than three months. Shares on the Shanghai exchange had rocketed more than 90 percent this year until they began to fall back about three weeks ago.

“It has brought the index into bear market territory,” Mr. Kowalczyk said. “There’s mounting concern over liquidity in the market. This is a big development.”

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