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Post by Fletchsmile on Jul 3, 2015 10:53:54 GMT 7
Meanwhile over in China... ============================================================ Chinese Stocks Just Lost 10 Times Greece's GDP
(Bloomberg 2 July 2015) As Europeans hold their breath awaiting a referendum that will help determine Greece's future in the euro zone, a stock market slump on the other side of the world is causing barely a ripple in global markets. A dizzying three-week plunge in Chinese equities has wiped out $2.36 trillion in market value -- equivalent to about 10 times Greece's gross domestic product last year. Still, the closed nature of China's financial markets is allowing the rest of the world to watch in wonder without seeing spillovers into their markets...yet. "What happens in China will turn out to be far more consequential than any sting that Greece may deliver over the coming weeks or months,'' said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. "As China's equity markets lose their roar, the risk is that demand more broadly on the Mainland could take a hit. That would knock out an essential engine of world demand over the past decade. As dramatic as events in Greece currently appear, however, ultimately, it's difficult to see these proving decisive for the world economy.'' Contd. www.bloomberg.com/news/articles/2015-07-02/chinese-stocks-just-lost-10-times-greece-s-gdp
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Post by Fletchsmile on Jul 3, 2015 11:01:55 GMT 7
and today (3 July) ============================================================ China’s Worst Three-Week Stock Rout Since 1992 Spurs Panic SalesThe Shanghai Composite Index headed for its steepest three-week decline since 1992 as government measures to shore up Chinese equities failed to stop margin traders from unwinding positions at a record pace. The benchmark gauge sank 3.3 percent to 3,785.57 at the midday break, extending its drop from a June 12 peak to 27 percent. Chinese shares have erased more than $2.8 trillion of value in three weeks, marking an abrupt end to the longest bull market in the nation’s history. Just 70 of the 1,106 stocks in the Shanghai Composite posted gains on Friday, paced by PetroChina Co. amid speculation of buying by state-backed funds. contd.. www.bloomberg.com/news/articles/2015-07-03/china-s-stocks-plunge-to-three-month-lows-as-bear-market-deepens-ibmyo1o1
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siampolee
Detective
Alive alive O
Posts: 14,074
Likes: 8,905
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Post by siampolee on Jul 3, 2015 17:08:26 GMT 7
What's this? The North London Yids team going cheap are they?
Seriously though one wonders just what sort of effect a financial debacle in China might mean to Thailand and America.
It to my mind and I am no financial expert certainly takes the gloss of of the idea of the Chinese Yuan as a reserve currency
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The Arrow
Vigilante
Vigilante
Posts: 3,034
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Post by The Arrow on Jul 3, 2015 20:19:06 GMT 7
We need a world's reserve currency which isn't tied to any particular country. Middle east, Libya and now Russia/China/US potential war is all down to the petrodollar. The US gets to print fake money and receive real goods and services for it. Without this status the US would go pop the day after. Hence the aggression.
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Mosha
Crazy Mango Extraordinaire
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Post by Mosha on Jul 3, 2015 20:59:18 GMT 7
A fear that they will lend Greece the money?
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Post by Fletchsmile on Jul 7, 2015 16:20:42 GMT 7
These are some staggering numbers =========================================================== Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid RoutBloomberg 7 July Chinese companies have found a guaranteed way to prevent investors from selling their shares: suspend trading. Almost 200 stocks halted trading after the close on Monday, bringing the total number of suspensions to 745, or 26 percent of listed firms on mainland exchanges, according to data compiled by Bloomberg. Most of the halts are by companies listed in Shenzhen, which is dominated by smaller businesses. The suspensions have locked up $1.4 trillion of shares, or 21 percent of China’s market capitalization, and are becoming increasingly popular as equity prices tumble. If not for the halts, a 28 percent plunge in the Shanghai Composite Index from its June 12 peak would probably be even deeper. “Their main objective is to prevent share prices from slumping further amid a selling stampede,” said Chen Jiahe, a strategist at Cinda Securities Co. The rout in Chinese shares has erased at least $3.2 trillion in value, or twice the size of India’s entire stock market.contd. www.bloomberg.com/news/articles/2015-07-07/chinese-trading-halts-freeze-1-4-trillion-of-shares-amid-rout
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