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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsChina spends billions to prevent stock market crash
China's stock market is in trouble. It's down over 20% since mid-June. But Chinese stock brokers are trying to tell scared investors: Stop selling. Help is on the way. On Saturday, China's 21 largest brokerage firms said they would spend a whopping 120 billion yuan (about $19.3 billion) to try to stabilize the market, according to Chinese state media. The firms will actually buy stock funds themselves. The goal is to show regular mom and pop investors that the big players still think buying stocks is a good idea. <snip>
Trouble ahead? China's stock market has been on a wild ride in recent months. It shot way up and many Chinese investors jumped in, hoping to get rich quickly. While the stock market has tumbled in recent days, the Shanghai Composite is still up 14% this year -- a better gain than America's stock market.
Still, there are warning signs that more pain may be coming. According to Oxford Economics, shares may have to fall another 35% or so to bring them into line with long-term averages.
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(That's 20 percent drop in basically two weeks.) Hope the ink dries fast on the money they must be printing... don't want to get it on the banker's nice clothes.
CNNMoney (New York) July 4, 2015
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Who gets burned when China's bubble bursts?
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(20,854 posts)Demand for gold bullion up 1,100+% the past few days. Seems the smart folk in the EU have been trying to figure out where to put their money -- pound sterling or ... US dollar.
Looks like they don't much care for any currency considering the huge uptick in demand for bullion which cannot be met I read. Kinda scarey, esp. if you don't have anything in physical metals meaning gold, silver and even platinum.
Gold prices are down now to about $1167.00 oz. which seems high to me still but ... could be a darn good thing to have $$$ in if there is no where else to turn.
Gold is good obviously IMO, especially when you have no viable currency!
>>One week ago, when we scoured through the latest OCC quarterly derivative report (in which we find that the top FDIC insured 4 US banks continue to account for over 90%, or $185.5 trillion of all outstanding derivatives which as of March 31 amounted to $203 trillion; nothing new here), we found something fascinating: based on the OCC's derivative update, JPM had literally cornered the commodity derivatives complex, when from "just" $226 billion in total Commodity exposure, JPM's notional soared by 1,690% in one quarter to $4 trillion, or about 96% of total.
More about this here: http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-metals-derivative-exposure-just-soar-1260