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I am bearish but I find myself unable to trust China's stock market to make a bet because the government is manipulating the prices in order to not have somethi

I am bearish but I find myself unable to trust China's stock market to make a bet because the government is manipulating the prices in order to not have something like two times the entire population of Canada angry and out for blood because they lost money in the stock market, which btw, encouraged by the government. The quote 'market can stay irrational longer than you can stay solvent' really hits home here. Especially when it's half way across the world, and a government that doesn't like to open it's books to outsiders. Just looking at the chart there could be another crash seeing that the SSE has failed to close above the crucial 4000 line. People are taking profits and looking to park their money in West Coast real estate. When the 1400 companies banned from trading suddenly find the herd is gone, they are in for a nasty surprise since they put up their company as collateral to raise capital and they will face margin calls and in turn banks facing margin calls themselves with each other, and being forced to write off the mountain of debt from overbuilding will cause catastrophic failure that will make Tokyo's bubble look tiny. One thing is for sure, the China that emerges from this market collapse will be a very different one from the one we have today. Further manipulation and showing lack of control of the markets will be the CCP's final undoing. Some members of the party including the current leadership Xi knows this and save himself as the guy 'that tried' and save himself to the trip to Hague when they throw jiang zemin under the bus instead.

norea-armozel 11y ago
This has been one my issues with the CCP. They seem to feel the only good policy is to keep the markets growing rather than focusing on making the lives of the average citizen better. Building highways and airports are nice if you have a population that can afford to use them, but what many people in China need is to have their healthcare and schooling made affordable (they basically took away most of the socialized medicine and schooling programs they still had in the 1980s which by then were half-govt-covered/half-citizen-covered affairs). The wealth of the economy shouldn't serve a few if they really support socialism. But that's just my take on the matter.

norea-armozel 11y ago

This has been one my issues with the CCP. They seem to feel the only good policy is to keep the markets growing rather than focusing on making the lives of the average citizen better. Building highways and airports are nice if you have a population that can afford to use them, but what many people in China need is to have their healthcare and schooling made affordable (they basically took away most of the socialized medicine and schooling programs they still had in the 1980s which by then were half-govt-covered/half-citizen-covered affairs). The wealth of the economy shouldn't serve a few if they really support socialism. But that's just my take on the matter.