Shanghaiist: The Chinese stock market goes pop

nanheyangrouchuan

Thu, 31 May 2007 13:48:41 +0800

High rollers in the chinese stock market have access to the same tools available in the US, UK, HK, Tokyo, Singapore, Germany, etc. They can spot various mathematical aberations that can signal a bursting bubble, and of course all you really need to pop a stock market bubble is something like a domestic company's or state owned bank's REAL balance sheet getting out. Then again, Wal-mart has cancelled its orders from Chian for 4th quarter 2007 and all of 2008 because they are in trouble. The paper tariff has started and Congress has a big bipartisan 30% blanket tariff for China ready to go. Pop pop goes the weasel, 'cause the weasel goes POP!

African Dave

Thu, 31 May 2007 13:23:21 +0800

Yes, if there were a coordinated effort not to sell, then it would not go down, but eventually, someone is going to see the writing on the wall and that he must sell or lose. Then the avalanche effect takes over. "Insiders?!?!" as in anyone who has eyes and ears???? It's been so obvious that this market will do down, that there is no surprise here whatsoever. What guides Chinese buyers? Probably inexperience in a lot of cases. As Mark Mobius recently remarked, it would be a healthy thing for China's market if it dropped by 30%.

zoe

Thu, 31 May 2007 11:48:25 +0800

si le dou yao ai:死了都要爱

Alec

Thu, 31 May 2007 11:43:52 +0800

Just curious, but if everyone refuses to sell how does a bubble pop?

nanheyangrouchuan

Thu, 31 May 2007 10:48:51 +0800

The sellers were mostly insiders who knew this was coming and had "sell" or "stop loss" orders ready for the opening bell. The rank and file still hold dearly for life onto their stocks and continue plowing their lives into more shares. Either the rank and file have never been taught about curve inversions or ignored it "western cowardice". Into the breach once more!