CHINESE STOCKS LOSE $3.4 TRILLION IN MARKET VALUE
Trillion? What? This is incredible and will be felt world wide. Check it out:
Over the last 14 trading days, Chinese stocks trading on the Shanghai and Shenzhen exchanges have lost a record $3.389 trillion in total market capitalization – with China’s total market cap declining from a record high of $11.479 trillion, down to $8.09 trillion. China’s loss of market cap is equal to the GDP of Germany!
Since June 12th when NIA predicted that Chinese stocks would soon crash by 66% in value, the Shanghai Composite has declined by 28.69% and the Shenzhen Composite has declined by 33.18
Over the last 14 trading days, Chinese stocks trading on the Shanghai and Shenzhen exchanges have lost a record $3.389 trillion in total market capitalization – with China’s total market cap declining from a record high of $11.479 trillion, down to $8.09 trillion. China’s loss of market cap is equal to the GDP of Germany!
Since June 12th when NIA predicted that Chinese stocks would soon crash by 66% in value, the Shanghai Composite has declined by 28.69% and the Shenzhen Composite has declined by 33.18
Market Value
Since June 12th when NIA predicted that Chinese stocks would soon crash by 66% in value, the Shanghai Composite has declined by 28.69% and the Shenzhen Composite has declined by 33.18%.
China’s total market cap/GDP ratio has declined from a 7 1/2 year high of 109.72%, down to only 77.02% – but remains above its 10-year median of 47.47%. Chinese stocks finished last week in “overvalued” territory, after being in “extremely overvalued” territory for the previous three months.
Over the last two weeks, Shanghai stock exchange margin debt has declined by $38.27 billion from a record high of $238.89 billion, to a current level of $200.62 billion. However, as a percentage of the Shanghai’s market cap – we still haven’t seen any margin deleveraging. Over the last 12 months, the Shanghai’s margin debt/market cap ratio has increased from 1.75% to its current record level of 4.16%.
The Chinese government is beginning to panic, after their move to lower interest rates last week did nothing to slow the stock market free fall. Today it was announced that the People’s Bank of China (PBOC) will provide liquidity to China Securities Finance Corp, the state-backed margin finance company. Brokerages will no longer be required to force the liquidation of clients who fail to meet margin calls, which they would normally be required to do after a client’s position has declined in value by 27.78%.
http://conservativebyte.com/2015/07/chinese-stocks-lose-3-4-trillion-in-market-value/
1 comment:
You have to understand a very important point , all markets are basically make believe , the market is there simply to steal money , from A then give it to B , like musical chairs , or a roulette wheel , its built up just to be taken down , its all , RISK..............
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