No fear, the Chinese GodFather is here.
At 2 p.m. in China, the Stock Market Rescue Suddenly Switches On
Government funds seen buying large-cap shares after declines
World War II victory parade adds pressure to support equities
Afternoons in the Chinese stock market have turned into a waiting game for the state-backed funds to arrive. Over each of the past four days, China’s SSE 50 Index of large-capitalization companies has rebounded by an average 6.4 percent in late trading from session lows. The gauge surged 15 percent over the four-day period, its biggest rally since 2008 and twice the 8.1 percent gain by the Shanghai Composite Index. The SSE 50 climbed 0.9 percent at the close on Tuesday, erasing an earlier loss of 4.8 percent.
The rallies are driven by government-backed funds buying shares to stabilize the market before a World War II victory parade on Thursday, according to IG Asia Pte. China’s 90 million individual investors have been pulling back from the market, with margin debt in Shanghai falling by $10 billion over the past four days to the lowest level since Dec. 25.
http://www.bloomberg.com/news/articles/2...-of-stocks
GS view on China stock in SEHK, not in SSE and SZSE...
Goldman Sachs Still Bullish on China Stocks
Goldman Sachs Group Inc. is sticking with its bullish view on Chinese stocks in Hong Kong, saying valuations are inexpensive and improving economic data will spur a rebound.
“The snapback in China could be fairly meaningful,” Timothy Moe, chief Asia Pacific equity strategist at Goldman, said in an interview Wednesday. “The risk versus reward in terms of what’s priced in the market gives us a sense that if we see a stabilization in macro data, say from here to the end of the year for example, then we could see a decent recovery.”
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http://www.bloomberg.com/news/articles/2...h-steadies
It used to be, when US sneezes. the world catches cold. I reckon China has achieved close to similar weight-age as US nowadays...
Global sigh of relief from investors as China markets shut down
SYDNEY (Sept 3): Bruce Yu needs a time out.
Like investors around the world, the Franklin Templeton SinoAm money manager has struggled to keep up with escalating volatility in Chinese markets - swings that increasingly set the tone for trading in everything from commodities to U.S. stocks and the Japanese yen.
Luckily for Yu, China is shutting down its exchanges and banks until Monday to commemorate the 70th anniversary of Japan's World War II defeat. The yuan also stopped trading at 4.30pm in onshore markets. No major economic data is scheduled until Tuesday, when August trade figures will be announced.
The holiday gives global investors four days without any price swings or scheduled data releases from the world's second-largest economy.
"Most fund managers are battered and close to desperate" for relief from the turmoil, said Yu, who runs the Franklin Templeton SinoAm China A Shares Equity Fund in Taipei. The holiday "is a good time to clear your thoughts and prepare for what comes next. Hopefully global market volatility will drop."
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http://www.theedgemarkets.com/sg/article...-shut-down
China's anti-graft unit to widen checks
Zhang Yujun, then President of Shanghai Stock Exchange, speaks at a conference in Shanghai, on Nov 24, 2011. PHOTO: REUTERS
Published
3 hours ago
[url=http://www.straitstimes.com/asia/east-asia/chinas-anti-graft-unit-to-widen-checks#][/url]
Watchdog to target country's financial sector, including central bank and regulators
BEIJING • China's anti-corruption watchdog said it would expand its inspections to major financial institutions, including the central bank and regulatory authorities, which are already under pressure after a spectacular stock market meltdown.
After a series of probes into large state-owned enterprises - in particular, oil firms - the Central Commission for Discipline Inspection, the Communist Party monitor, now plans to target the financial sector.
The new round of inspections will cover the central People's Bank of China, the China Banking Regulatory Commission, the China Insurance Regulatory Commission and the watchdog China Securities Regulatory Commission (CSRC), according to a long list posted online on Friday night.
China Investment Corp, the world's largest sovereign fund, commercial banks ICBC and the Bank of China and the country's major insurance companies will also come under scrutiny.
The anti-corruption watchdog will also examine stock exchange operators in Shanghai and Shenzhen, and the parent company of major brokerage Citic Securities.
After soaring 150 per cent in one year, the two bourses went into a tailspin in June that extended into August, tumbling nearly 40 per cent despite massive intervention by the authorities at a cost of hundreds of billions of dollars.
The frantic and clumsy state intervention was criticised, with some experts questioning the apparent contradiction with Beijing's intention to give a greater role to the market and private sector.
And the failure of the government's efforts to stabilise the stock markets reinforced growing doubts about the effectiveness of its economic policy while Chinese growth is experiencing a severe slowdown.
The authorities also reacted to the stock market crash by launching high-profile police investigations into supposedly illegal transactions to reassure public opinion.
The authorities in August detained a CSRC official and four senior executives from Citic Securities for "stock market violations".
Last month, Citic Securities said police were investigating top officials from the brokerage, including its general manager Cheng Boming, for insider trading and leaking inside information.
The party also said it had placed Mr Zhang Yujun, an assistant chairman of the top securities regulator, under investigation for "serious violations of discipline", a euphemism for corruption.
President Xi Jinping has pursued a highly publicised anti-graft drive since taking office, with thousands of officials falling from power.
But some critics liken the campaign to a political purge and say the Communist Party has failed to introduce systemic reforms to prevent graft, such as public disclosure of assets.
In an article published on Friday by the party's official People's Daily, Mr Wang Qishan, head of the anti-corruption watchdog, urged party members to fall back on China's traditional virtues in curbing corruption.
The party must be under no illusions about how serious the problem is, he said.
AGENCE FRANCE-PRESSE, REUTERS