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[–] Wek 0 points 1 point (+1|-0) ago  (edited ago)

I wonder when it would be wise to buy in on Chinese stocks for a long-term hold...

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[–] Anon_Econ 0 points 3 points (+3|-0) ago 

There's an old saying. never catch a falling knife. This move today, limiting the sale of insider investors, will do major damage to investor confidence in the Chinese markets. I think it would be fair to say that the turmoil is only beginning in China and it may be many months before we find the bottom. Remember, this isn't just a financial crisis that they are facing, it truly is an economic crisis.

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[–] ClassicLiberaltarian 0 points 1 point (+1|-0) ago 

I think it will be a bit longer until this bubble pops. They're trying everything from cutting interest rates to prohibiting trading to defuse this bubble.

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[–] skselby 0 points 1 point (+1|-0) ago 

It would be unlike the Chinese government to leave the stock market to, well, the market. I'm not concerned with the intervention as it's consistent with the Chinese approach to their economy. It's interesting but I don't think it reflects an underlying weakness with the Chinese economy.

[–] [deleted] ago 

[Deleted]

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[–] skselby 0 points 1 point (+1|-0) ago 

Good point on the data quality; I agree that the data is questionable. It may be that the Chinese government is working so hard at trying to prop up the stock market since there is more transparency on the data. Other economic indicators (GDP, inflation, unemployment) can be easily fixed before the public sees them. This is much more difficult with the stock market.

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[–] TerriChris 0 points 1 point (+1|-0) ago 

Oddly looks like America's situation 1928 through October 1929.

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[–] Dutch_TFP ago 

I would stay away from the stock market in general.

Look up the massive bubbles in America (S&P 500, just look up a graphic of it that shows the last 15 years) and China. China has a massive housing market bubble and you can look it up on youtube (search for the empty cities of China).

Interest is 0% in America and Europe and China is lowering it now. All so that banks can borough for free and buy stocks so the stocks will continue to rise.

It's purely making the bubble more epic and it's already larger then the 2007 bubble.