China is up this morning.
The CSI 300 and the Shanghai Composite were up 1.1% this morning despite Evergrande's 80% loss (nothin' from nothin' leaves nothin') however, both indexes opened 5% higher and sold off all day - not really that impressive in the end. China cut the stamp duty for trading securities by 50% - it encourages trading but not trading in the still downward-spiraling property sector.
"The new measures don’t fully address Investors’ concerns", said Jason Lui of BNP Paribas. "Investors are still looking for more concrete steps from the government to boost the economy. If they still feel bearish on the economic recovery of China, then it may be difficult to convince them to buy shares just because of these technical changes,” he said.
Foreign investors were net sellers of Chinese domestic stocks for 13 consecutive days this month, the longest streak of selling since November 2015, when the market was recovering from a historic crash. China’s latest measures to boost its stock market follow a statement in late July by the Politburo, the Communist Party’s top policy-making body, which pledged to “invigorate the capital market and boost investor confidence.”
In short, China has spent Billions of Dollars to buy another day and to prevent the Shanghai Stock Exchange from falling more than 10% (423) in August - we can save that for next month. China is currently in what experts call a "Dead Parrot" economy - don't expect it to go "Voom!" any time soon:
- Markets Ready for Swings After High-Rates Mantra of Jackson Hole
- At Jackson Hole, Post-Inflation Challenges Vex Central Bankers
- Junkiest Debt Rallies as Investors Brush Off Fed
- US Bank Deposits Plunged Last Week As Fed Rescue Funding Usage Hits New Record High
- Fed’s Inflation Fight, China’s Slowdown Hammer Emerging Markets
- Weekend News Round Up - Newsquawk Asia-Pac Market Open
- China’s Worsening Economic Slowdown Is Rippling Across the Globe
- 7 Reasons Why 'The China Crisis' Has Finally Arrived
- China Cuts Stock Trade Tax, Tightens IPOs to Boost Market
- Asia Stocks Look Set for Small Gains; Yen Weakens: Markets Wrap
Last week was a rollercoaster for the U.S.