For veterans the 30% drop of Chinese stock markets last week was not really a surprise, but this time especially young inexperienced investors have been hit hard, tells business analyst Shaun Rein author of The End of Copycat China. Over the past month 7 million new accounts were created, mostly by investors under 30 years. That might his consumer confidence, says Rein.
Category Archives: Stock market
China´s stock traders have been lending money massively to buy more shares called margin finance. The recent drop on the stock markets has taught them a lesson and WSJ wealth editor Wei Gu sees how Monday´s upswing was caused by margin sellers, cutting their losses, she writes in Dow Jones.
The current mayhem at China´s stock market might be some short-term panic selling, but business analyst Shaun Rein points at the systemic risks in China, as a growing number of companies use their shares as collateral, he warns at Bloomberg. For US companies, the current fallout seems less problematic.
Many analysts have been looking at the government for a solution of the dropping stock markets in China. But accounting professor Paul Gillis says investors – including the foreigners – should have a look at their own “irrational exuberance”, he tells CNBC.
A sky-high rally, a scary fall and unprecedented government action to stop that fall. Is the government for the first time losing its dominance to market forces, as some suggested? Financial analyst Arthur Kroeber does not think so, he tells Globe and Mail.
Under new US rules the Public Company Accounting Oversight Board (PCAOB), the main U.S. audit regulator will start this year to inspect Chinese firms listed at US stock markets in China, Reuters reports. Accounting professor Paul Gillis is not impressed.
Despite a short correction, Shanghai´s shares are still on record heights, writes WSJ wealth editor Wei Gu in Marketplace. But those records in wealth have not boosted consumption, as investors tend to wait and see what the market is doing.
Political protest have dominated most of the media coverage from Hong Kong, but the resistance against a financial and regulatory overhaul has been as important, tells Beida accounting professor Paul Gillis in Quartz. Why an improved market oversight is long overdue.
China´s stock markets got a setback as global stock-index compiler MSCI decided to delay inclusion of China at least still next year. Reason: the current 5% foreign participation is too low. But business analyst Ben Cavender expects China to open its market further this year and an estimated 20-50 billion US dollar in capital to enter the market next year, he tells Money Control.