China Crashes At Open With Over Half The Stocks Suspended; Margin Debt Plunges Most On Record

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For a record 12th day in a row, Chinese margin debt balances have dropped with today’s 8.5% collapse the largest in history. As of last night, there were around 570/1694 Shenzhen stocks halted/suspended and hundreds more on the Shanghai bourse leaving more than 54% of all Chinese stocks frozen. China continues to try tomanage leverage down (raising margin requirements on stock futures) while encouraging speculation (easing rules for insurers to buy blue chips and financing the purchase of smaller company shares directly) and CYNK’ing the entire marketif it’s not open, you can’t sell it and the price cannot fall! It’s not working as CSI-300 futures are now down 7.9% in the preopen.
China appears to be trying to manage leverage…

  • *CHINA RAISES MARGIN REQUIREMENT FOR CSI 500 INDEX FUTURES
  • *SHANGHAI MARGIN DEBT FALLS 8.5%, BIGGEST ONE-DAY DROP ON RECORD
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The problem is the collateral value is falling faster than the margin debt leaving “leverage” still at record highs…

While encouraging speculation…

  • *CHINA EASES RULES FOR INSURERS TO INVEST IN BLUE CHIPS: XINHUA
  • *CHINA SECURITIES FINANCE TO BUY MORE SMALLER COS. SHRS: CSRC

www.zerohedge.com/news/2015-07-07/china-futures-plunge-8-over-half-stocks-suspended-margin-debt-crashes-most-record

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6 thoughts on “China Crashes At Open With Over Half The Stocks Suspended; Margin Debt Plunges Most On Record

  1. Don’t worry, this won’t be coming to the US for a while. Our corrupt stock market, fueled by greed, won’t go down under any circumstances. Even a nuclear war wouldn’t bring our market down. The Wall Street criminals are working to squeeze every last penny out of the NYSE before they dump it and leave the US to their private islands. Pump and dump.

    • ^ This times one hundred. Although I think the richer ones will want to be like the bushco. family and move to Paraguay to their thousand hectare estates situated over the worlds last untapped aquifers (Gurani).

  2. The world’s financiers have entered into something that the world, and them, have ever seen or experienced before in all of history. It matters not which country or nation. The world has now been flooded with worthless pieces of paper, and even more worthless and meaningless 1’s and 0’s in a computer memory bank (no pun intended). Both have zero value at all. it’s purely a confidence game, and many many players in the world have no idea what’s about to smack them in the face.
    Just imagine, if you will, all the people invested in “paper metals” (gold, silver, platinum etc.) that feel and think that they own and will someday be delivered all those metals. When in reality, they will never ever see any of it, not one ounce will they ever put theirs hands on.
    The financiers have fooled the world yet again! Unfortunately, the entire world’s systems are falling and are not going to go back up. They can not print or input enough paper or 1’s and 0’s in the system to cover, because the interest is now growing faster than they can print or hit those keyboard keys.
    Every country and nation should tell the IMF, World Bank, BIS, and all to shove it and non longer even pick up the phone when they call. Iceland did it, and as the world (who were paying attention anyway) saw that nothing happened to them. In fact they jailed many bankers, and told the rest to either leave or be imprisoned. The financiers left like the cockroaches they are.
    Greece is about to do the same, and they will be glad they did.
    I highly doubt though, that the world will ever wake up to the imaginary delusional money loaned that never existed, yet the world has been paying these scammers and thieves for centuries.
    Too bad that the world is filled with so many people who just do not have the capacity for critical thinking. Nor understanding their own banking and financial systems.

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