Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
In the last 2 days, PBOC has thrown everything at the ponzi-fest they call a rational market. An RRR cut, a Benchmark rate cut, a rev repo rate cut, a CNY50 Bn rev repo injection, a stamp duty cut, IPO halts (cut supply), and last but not least permission to speculate with a reassurance that shares on a solid foundation. The outcome of all this policy-panic – CHINEXT (China’s Nasdaq) is down another 6% today (down 25% in 3 days) and aside from CSI-300 futures, all other major Chinese indices are in free-fall.
The message from The PBOC:
- Don’t believe or follow negative rumors against Chinese economic development
- *LOOSE LIQUIDITY TO SUPPORT CHINA’S STOCK MARKET: SEC. JOURNAL
- *IMPROVING ECONOMY TO SUPPORT CHINA’S STOCK MARKET: SEC. JOURNAL
The result:
Some context…
So much for these flows:
- *CHINA MAJOR BLUE-CHIP ETFS HAVE $1.5B NET PURCHASE MONDAY: NEWS
Add to that the fact that industrial metals are collapsing with steel rebar limit down…
…and it appears Central Bank Omnipotence is under threat.