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Thursday, March 28, 2024

Strap In! China Is Crashing Again

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.

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