Category Archives: Stock market

Young investors hard hit by stock volatility – Shaun Rein

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.

The drop in margin debts – Wei Gu

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 growing systemic risks in China – Shaun Rein

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.

The popping exuberance at Chinese stock markets – Paul Gillis

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.

Stock markets: more room to fall – Victor Shih

China´s stock markets might have dropped already more than 30%, but there is more room to fall, tells financial analyst Victor Shih in Quartz. Existing sell orders will put downward pressure on the market, he says.

What does the government wants at the stock markets – Arthur Kroeber

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.

US inspection of listed China firms “little and too late” – Paul Gillis

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.

Sky high stocks do not boost consumption – Wei Gu

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.

Why Hong Kong resists market oversight – Paul Gillis

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.

Up to 50 bn US$ in capital waiting to enter A-share market – Ben Cavender

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.