Category Archives: Stock market

Tough year ahead for stock markets – Wei Gu

2016 is going to be a rough year for China´s stock markets, explains WSJ wealth editor Wei Gu to CCTV America. Chinese can not withdraw up to US$50,000 from their account, flooting out of the stock markets yesterday. The government is halting its support and new supply of listed companies will increase demand on the markets

Retreating government causes stocks to drop – Arthur Kroeber

China´s stocks caused a rough opening of 2016 as they dropped dramatically. Economist Arthur Kroeber expects the volatility to continue for a few months, as the government is slowly withdrawing its support, moving awaya from artificially higher values, he tells Globe&Mail.

China bond markets: tin ice for foreign investors – Victor Shih

While the central government is eager to get foreign investors into its bond markets, they should care very careful in doing to, says Victor Shih, assistant professor political science, UC San Diego and leading author on the relation between political and financial factions in China, in Bloomberg.

Why are Chinese listed companies coming home? – Wei Gu

Chinese companies listed at US stock exchanges are talking about coming home, to the Chinese stock markets. WSJ wealth editor Wei Gu is analyzing the trend and explains who is likely to gain from such a move.

China closes door for US stock watchdog checks – Paul Gillis

Checking the accounts of US-listed Chinese firms has been off limits for the US watchdog PCAOB. Despite lengthy negotiations to allow the PCAOB to check Chinese firm, last week the door closed, reports accounting professor Paul Gillis on his weblog. And relations between China and the US are at a new low.

A third board to fraud – Paul Gillis

Reversed merges caused many fraud problems in the US and China has a similar National Equities Exchange and Quotations (NEEQ), also known as the “new third board”, writes accounting professor Paul Gillis on his weblog. Just like the poorly supervised US equivalent, it seems a road to fraud.

Invest now in commodities – Shaun Rein

Business analyst Shaun Rein does not support the current bearish mood on China´s economy, he tells MoneyControl. There are weaknesses, but economic growth for Q4 will be at or close to 7 percent, he says. And weaknesses offer opportunities, if you have a strong stomach.

Reversed mergers market in US drying up – Paul Gillis

Hundred of smaller Chinese firms entered the US stock markets through reversed mergers, looking for an easy way to get access to capital. But changed regulations and weary US investors have likely killed that market, tells accounting professor Paul Gillis in the South China Morning Post.

Why Citic gets the blame for stock market crisis – Paul Gillis

China´s largest brokerage Citic is under investigation for causing the recent downfall in China´s stock markets. But they did just want the government initially wanted by cheering up the markets, says finance professor Paul Gillis to Bloomberg. The same government now needs a scapegoat.

A circuit breaker: a symbolic market tool – Sara Hsu

China´s stock market regulators launched the idea of a circuit breaker, to avoid heavy swings at the markets. The market would be stopped for 30 minutes after an upswing or downswing of more than five percent, at most once a day. Highly symbolic, writes financial analyst Sara Hsu in the Diplomat, and it cannot be a proxy for real reform.