Chinese Economics Thread

[coolgod]

Let's put it this way, I'm not inherently against the idea of a healthy stock market, however I do not believe the Chinese stock market can be described as healthy. If you do also view the Chinese stock market as a form of gambling (particularly relative to more established, mature markets dominated more by institutional investors rather than retail investors), then it either means you see that as being healthy, or you recognize that the current stock market is not healthy and thus significant rises or "popping off" is not desirable and will end up seeing corrections which will see some people inevitably holding the bag.

The old timers have been holding the bag for almost a decade, it's time to introduce the stock market to new bag holders in China

 

[Blitzo]

The old timers have been holding the bag for almost a decade, it's time to introduce the stock market to new bag holders in China

Okay, I see the conversation was glib from the beginning.

 

[coolgod]

Okay, I see the conversation was glib from the beginning.

TBH I'm already feeling FOMO, too late to buy now

 

[Overbom]

I get your theory on why you don't think the stock market is productive, but I think it is necessary for China right now. China already limited the growth of real estate prices, Chinese money have to go somewhere domestically, they can't all buy government bonds (already ultra low yields), gold or stakes in private tech companies (which requires a substantial chunk of cash).

For the past few years most Chinese casual investors are forced to put some of their money in foreign products like bonds and stocks. If China wants to de-dollarize, building a whole financial system is a must, this includes a healthy stock market. The previous stock market was seriously unhealthy imo.

There are multiple reasons why the stock market was not performing and people avoided it. One of the reasons: Forgot the tech group and education crackdown already?

You may say that this was necessary, but don't forget that all these companies were in the stock market and overnight, people lost loads of money there

HK index down 7% now

 

[Quan8410]

There are multiple reasons why the stock market was not performing and people avoided it. One of the reasons: Forgot the tech group and education crackdown already?

You may say that this was necessary, but don't forget that all these companies were in the stock market and overnight, people lost loads of money there

HK index down 7% now

Funny when HK stock just had the longest and biggest streak of increasing and you afraid people will lose money after one down-trend session. Do they cry when they got the big buck? Even Dow Jones has sessions that down massively. Some people will lose money. That's just how stock market works no matter how healthy it is.

 

[Overbom]

Funny when HK stock just had the longest and biggest streak of increasing and you afraid people will lose money after one down-trend session. Do they cry when they got the big buck? Even Dow Jones has sessions that down massively. Some people will lose money. That's just how stock market works no matter how healthy it is.

was talking about the flop conference. Stock market going up or down is normal. going up/down 10% percent is not normal though and I would be more reserved tbh

But in any case, it's not my money so, as long as you do your DD then thats ok

 

[Chevalier]

There are multiple reasons why the stock market was not performing and people avoided it. One of the reasons: Forgot the tech group and education crackdown already?

You may say that this was necessary, but don't forget that all these companies were in the stock market and overnight, people lost loads of money there

HK index down 7% now
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I need to pick up some xpeng and byd anyway, and increase my SMIC position

 

[Overbom]

HK is now down 9%

As I said, when big numbers go up or down, that's a cause of concern because probably a correction is coming or that the trajectory is not healthy (organic)

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[ficker22]

HK is now down 9%

Not financial advise, but anyone now buying calls with lose money. NYSE market opens in 5 hours. Puts, or don't buy, at least for a week. All those China Stock Market ATH bros need to chill for now

 

[escobar]

Great story!!!
What Really Happens on the Ground When the US Slaps Tariffs on China

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