'Chinese investors, brokers and banks will dominate global finance'

[Ricboff]

Mr.Lynn getting a wee bit excited?


ASHR chart is nuts.....wild.........

' Whereas the Wall Street markets were largely dominated by professional money managers, at least for the last 50 years, the Chinese market is very different. It is dominated by small, private investors — more than 10 million personal accounts have been opened in China since December alone. And it is heavily directed by the state, in a way the U.S. market never has been.'


WTF.....



http://www.marketwatch.com/story/fo...market-to-watch-2015-04-22?link=mw_home_kiosk




Get up. Take shower. Brush teeth. Feed the cat or the dog. Check what the Shanghai market has been doing overnight.
For anyone in Europe who takes the markets seriously , that is now the regular morning routine. It is very much as it has always been, except with one big difference. Whereas once the standard reflex would have been to look at what had happened on Wall Street overnight, with perhaps a sideways glance at Tokyo, now it is Shanghai that investors look to.
What happens in China is now what dominates what happens in the rest of the world.
In the last few months, the Chinese equity indices have been roaring ahead. That is going to be the trigger for a big change. For at least 100 years, Wall Street has been the dominant global financial market, and it was from the Dow DJIA, +0.49% and the S&P 500 SPX, +0.51% that all the other bourses around the world took their lead.


From now onwards, that is likely to be Shanghai. Wall Street is about to be relegated into second place — and that is going to have big consequences for the way the markets in money work. Such as? Wall Street will become a regional bourse, more like London’s FTSE. The Chinese banks and brokers will dominate the markets.
And we will have to get used to a market dominated far more by private investors, and the state, and less by the professionals and the hedge funds.
No one can have failed to notice that the Chinese equity markets have been racing ahead this year. We have grown used over the last decade to the Chinese industrial machine swamping the world with manufactured goods, and we have become increasingly aware of the rise of a new breed of Chinese companies buying up assets around the world.
For years, however, its financial markets remained in the doldrums. Now it is acquiring the financial might to match its industrial muscle. The Shanghai Composite SHCOMP, +2.44% has blown every other market out of the water in the past year, more than doubling in value. Since February alone, it has risen from 3,000 to 4,300, and keeps on going upwards. Like any market, once it gets on a roll, nothing seems to stop it. Chinese exports can fall, and its property market can wobble, but the Shanghai Composite simply shrugs bad news aside and keeps on climbing.
Of course, it might all be a bubble. The Chinese have always liked to gamble, and they are taking to stocks the same way they took to roulette — with spendthrift, reckless abandon.


Even veterans of the dot-com bubble of 15 years ago are likely to feel queasy at some of the valuations put on Chinese companies. Technology stocks are trading on price-to-earnings ratios of more than 220, compared with 156 for the Nasdaq indexCOMP, +0.42% at the peak of the Internet boom.
Just as with any boom, there are flimsy companies being chased up to ridiculous valuations. That said, just because price have risen does not necessarily mean the market has gone mad. China has grown hugely richer just in the last five years alone, and its stock market has not kept pace with that — so it might simply be playing catchup.
What it certainly means is that the Shanghai index is about to become one of the biggest in the world.
In November last year, it overtook Tokyo to become the second largest stock index measured by total capitalization. It is still only around a third of the size of the of the U.S. market. But when you take the number of initial public offerings — and keep in mind that a Deloitte report showed Chinese listings overtaking U.S. ones in both size and value in the first quarter of this year — and the run up in share prices, and it is not hard to speculate that the Chinese index will be the world’s largest by the end of this decade, and possibly before.
That is already making a big difference in the rest of the world.
For three or four generations, the most important thing every investor needed to know was what was happening on Wall Street. It was home to the world’s biggest companies, operating in the world’s biggest economy. If the Dow were up, then the FTSE UKX, -0.49% , the CAC-40 PX1, +0.36% and the DAX DAX, -0.60% would all rise the next day. If it were down, they would all fall. New York set the pace and the pulse of the markets elsewhere.
Now that is inevitably going to change. So much money is going to be cascading out of a booming Shanghai index, and it will be so influential, that it seems inevitable that it will soon match Wall Street and then eclipse it. Indeed, it may have already done so — it is already to its performance that most European investors look.



But it will make a difference in other ways as well. As Shanghai becomes the world’s biggest stock market, it is Chinese bankers and brokers that will dominate it. Already more than half of the top 20 brokers and investment banks by market value are from China. The likes of Citic Securities and Shenwan Hongyuan will soon be as familiar as Goldman Sachs or Morgan Stanley.
And the mood will be different. Whereas the Wall Street markets were largely dominated by professional money managers, at least for the last 50 years, the Chinese market is very different. It is dominated by small, private investors — more than 10 million personal accounts have been opened in China since December alone. And it is heavily directed by the state, in a way the U.S. market never has been.
If you think Wall Street was volatile, wait until you see what a market dominated by Shanghai is like.
Still, whether it is better or worse makes no difference. In the next few years, Wall Street will have been relegated to second place in the view of the rest of the world — and it is Shanghai that will have taken its place. Every investor will have to get used to that.

 

[Ricboff]

hmm, careful with this blueprint . Regulatory bodies stand tall, we've seen this shit show rather recently; see USA 2008 ...


http://www.reuters.com/article/2015/04/22/markets-china-debt-idUSL4N0XA36020150422


SHANGHAI, April 22 (Reuters) - Issuance of Chinese asset-backed securities (ABS) could triple to more than $160 billion this year, reactivating huge assets now mouldering on bank books, as Beijing streamlines procedures for firms to securitise receivables.
By making it easier for banks to repackage and resell receivables - such as loan repayments on mortgages, car loans and credit cards - the government hopes to free up banks' balance sheets so they can lend more to the real economy.
The People's Bank of China (PBOC) announced this month that regulatory approval will no longer be required to issue ABS, and issuers will now only need to register to do so.
Getting banks to lend more is a major policy goal, given banks have so far been reluctant to lend despite repeated exhortations from top officials. Even Premier Li Keqiang has called for banks to "activate existing assets," - which is where this securitisation push comes in.
For example, a bank can take a portfolio of 5-year loans sitting on its books, chop them up into tranches, and sell them in chunks to other institutional investors who then receive the interest payments made by the borrower.
The logic is simple. China's tiny securitisation market has not tracked the expansion of China's $10-plus trillion economy, and banks alone have assets worth $28 trillion on their books.
By encouraging banks to securitise these assets, Beijing can reduce the need to print money to prop up the money supply and keep downward pressure on real interest rates.
Market players now expect ABS issuance to more than triple to 1 trillion yuan ($161 billion) this year, up from 300 billion yuan in 2014, which was in turn twice the total issued since 2005.
"There is a huge demand from banks alone to securitise assets," said Zhao Hao, economist at ANZ in Shanghai.
"General demand can easily push issuance value exceeding 1 trillion yuan ($161 billion) this year."
But Zhao said that the quality of the assets being securitised was more important than the process of securitisation itself.
Abuse of the ABS market was a primary reason for the global financial crisis in which American banks securitised low-quality sub-prime mortgages, repackaged them into opaque hybrid products, and then sold them at yield too low to reflect the actual risk.
In China, mortgages are also expected to be a major component of ABS issues but most Chinese mortgages are good quality because the average Chinese mortgage holder is not heavily indebted.
"ABS based on banks' mortgages will be a good sale that we will be very much interested in," said a trader at a Chinese insurance company in Beijing.
"But proper pricing is a key issue as China is faced with fledging, and thus inadequate, mechanisms to rate the underlying assets."
Banks, automakers, property developers and securities brokerages are among those expected to issue ABS, with banks seen continuing to be the biggest issuers.
This is because banks have the largest pool of assets and because they need more capital now to meet the stricter capital requirements required under the BASEL III capital accord.
NO BAILOUT
Issuance from automakers is also expected to grow quickly with ratings agency Fitch forecasting that the auto ABS sector in China will grow significantly in the next few years. ID:nFit723721]
Insurers, pension funds, other long-term investors and banks are expected to be the primary buyers of asset-backed securities, traders say.
While many of these investors are state-owned or controlled, the market does not view this as a quasi-bailout because the assets being securitised are high quality, hence there is no need for a bailout.
For now, only a small number of foreign institutions are qualified to trade ABS on the Shanghai-based interbank market, but Beijing is expected to improve access to the market.
"With proper expertise, overseas investors will definitely become ideal traders of China's ABS products once regulations are eased in the future," said ANZ's Zhao.

 

[Ricboff]

http://online.barrons.com/articles/chinas-long-bull-run-1430539072?tesla=y&mod=mktw


China’s President Xi Jinping was born in the Year of the Snake, but at heart he is China’s biggest bull. Already, China’s paramount leader has orchestrated the planet’s hottest recent bull market: Over the past year, Chinese stocks available to mainland investors have surged a staggering 119% in Shanghai and 121% in Shenzhen, with the biggest gains coming since November. The offshore stock market in Hong Kong -- open to foreigners and laden with Chinese listings as well as global companies from Prada to Samsonite -- has lagged but is starting to catch up, jumping 13% in April alone.

The scary part: Chinese stocks are braving seven-year highs just as economic growth slows to 7% from 12% five years ago.
You’d think a monster rally egged on by great expectations of monetary easing and market reform would attract a lot of attention, and it has -- starting with the locals. With real estate stagnant and stern restrictions on investing overseas, mainlanders seem only too happy to cheer on a homegrown bull. Local investors recently opened new stock market accounts at a rate of 4.1 million a week, up from about 70,000 a year ago. Many are borrowing to swell the herd, and margin balances have surpassed 1.6 trillion yuan ($258 billion), up from 300 billion yuan 16 months ago. By mid-April, BNP Paribas estimated, more than 70% of mainland-listed stocks were commanding prices exceeding 50 times earnings, while 40% fetched more than 100 times earnings.
Clearly, Red China’s bull run can give you a high like you’d get from guzzling too much Red Bull. “Mainland investors’ optimism toward the stock market is now far out of line with fundamentals,” warns Mizuho Securities’ Asian equity strategist Kengo Yoshida. The size and speed of this levitation, and pressure on the economy to live up to rising expectations, increase the likelihood of corrections of 10% or more, which could accelerate as margin traders liquidate their positions.
Now here’s the scariest part: Economists and strategists suggest that this bull market has just begun, as China begins to open its stock markets to global investors. At 4442, the Shanghai Composite Index still is 27% below its 2007 peak of 6092. This means long-term investors with horizons of more than three years may need to hold their noses and look to pullbacks to build their Chinese portfolios.
“Despite the run-up in equity markets, this is just the beginning,” says Helen Zhu, BlackRock’s head of China equities. “Structural-reform progress, rather than cyclicality in economic growth, has played a large part in driving the strong returns, and by reducing the tail risks that have been associated with China.” Chuck Clough, CEO of Clough Capital Partners in Boston, which manages several funds including one focused on China, agrees. He thinks the Chinese are just starting to buy stocks again for the first time in recent years. “China is at the beginning of a big movement from savings toward stock investing,” he says.


Because China’s rally will become more volatile, investors may want to avoid momentarily hot markets like Shenzhen, which is laden with smaller technology and nonfinancial stocks and already commands valuations near 50 times earnings. Instead, Barron’s has identified eight stocks that are still reasonable, ranging from Chinese brokerage GF Securities (ticker: 1776.Hong Kong) to Baoxin Auto Group (1293.Hong Kong), a car dealership that benefits from China’s aging fleet. Ironically, some of our picks are Chinese companies that once sought the glamour of a U.S. listing, but are now neglected as the fast money flocks east to chase China’s surge.


Make no mistake: Xi Jinping wants this surge to continue. It’s no coincidence that state-controlled media started cooing about the stock market last year just as Beijing relaxed restrictions on buying shares. “Encouraging robust market sentiment helps Beijing to achieve a number of policy objectives,” notes Joyce Poon, Asia research director at the Hong Kong research firm Gavekal Dragonomics. After all, Chinese companies looking to raise capital in recent years have had to issue bonds instead of stocks because share prices were so depressed. So a happier stock market not only increases funding for small enterprises and helps reduce China’s ballooning debt, but it also gives the Chinese another investment target besides real estate.
Critics will argue that Xi is merely swapping a bubble in real estate and debt for a new one in stocks. But a “paper” bubble of stock wealth is less malignant than a bricks-and-mortar bubble of empty homes and silent highways. Just look: The U.S. tech bubble of 2000, while painful, ultimately proved less debilitating than our 2007 housing bubble because there wasn’t a glut of physical inventory to work through.
Beijing, of course, knows how hard it can be to turn around a $9 trillion economy; controlling a stock market and its media apparatus is more easily done. Today, citizens can trade from as many as 20 brokerage accounts, up from just one. To encourage companies to raise capital in the stock market, regulators sped up initial public offerings and cleared a backlog of 600 pending new issues. In the first quarter, deal volume jumped 38% from 2014’s level.

More important, Beijing is taking big steps to liberalize mainland markets: Last November’s much-trumpeted Shanghai–Hong Kong “stock connect” scheme lets mainlanders buy eligible stocks listed in Hong Kong (commonly called H shares), while global investors can buy select mainland stocks (or A shares), up to a daily quota. This program boosted trading traffic and will spawn a similar link-up later this year, this time between Hong Kong and Shenzhen.

Xi, who consolidated power so much that he has earned the nickname “Xi DaDa” (literally “Xi the Big”), has a grand plan to establish China as a global superpower. Making the yuan more international and widely held is part of that plan, as is a thriving capital market. Xi has always said that China should pursue “the Chinese dream.” And what could be a bigger triumph than a bull market, made in China by the Communist Party, that’s the envy of capitalists the world over?



FOREIGN INVESTORS CANNOT AFFORD to ignore China, not when the U.S. bull market is maturing and the stench of disinflation wafts from Europe and Japan. Asian growth is slowing, but, at an average pace of 6.2%, DBS economists reckon it’s still enough to spawn an economy the size of Germany’s every 3½ years. China, which has cut rates twice since November, still has many tools to stimulate growth: The short-term interest rate is more than 3.3%, versus zero or negative for its trading partners.
Valuations also don’t yet inspire vertigo. Shanghai stocks fetch 22 times trailing earnings, versus 49 times in 2007. And Hong Kong’s Hang Seng Index fetches 12 times earnings, versus 20 times in 2007. China’s onshore stock market is at about 75% of its gross domestic product, still below 90% in South Korea and 150% in the U.S.
The Chinese are upbeat thanks to ample liquidity. Just as U.S. traders believe in not fighting the Fed, the Chinese swear by “don’t battle Beijing.” “So unless China’s policy makers undertake sudden tightening measures, the A-share bull run is likely to continue,” notes Chen Xingdong, BNP Paribas’ chief China economist.
Gavekal co-founder Louis-Vincent Gave believes that today’s biggest macro development isn’t oil’s collapse but China’s commitment to making the yuan more international and convertible. When that happens, the excuse for excluding China from global indexes weakens. If China’s weight in the MSCI All Country Index were to tick up from less than Spain’s (at 1.7%) to match Japan’s (10.6%), index managers will have to scurry to buy Chinese stocks. “Being short China will remain a very dangerous proposition,” Gave notes.
Already, brokerage firms are finding it hard to keep pace with this rally. For example, Mizuho on April 17 upped its end-of-June target for Shanghai to 4400 from 3400, only to see the index blow past the new mark four days later. Mizuho thinks the index could reach 5100 in the third quarter, peaking around the time of the Communist Party’s big policy meeting each autumn, before pulling back to 3300 by early 2016. “It will be the government’s job to curb the bubble,” writes Mizuho’s Yoshida, but there’s less chance of tightening with growth anemic and commodity prices weak.

Meanwhile, China has cut back its stockpiling of U.S. Treasuries and is instead spending its yuan on amassing physical assets across the globe. A booming stock market certainly will help that cause. Among the things the Chinese have already bought: the ancient Athens port of Piraeus; Smithfield Foods and, with it, hundreds of the biggest U.S. farms; and AMC Entertainment and 4,960 movie screens onto which Hollywood projects its American fantasies.
A made-in-China bull run can woo global investors if they’re prepared for bumps. Beijing has cut the reserves that banks must set aside, but hopes for a big interest-rate easing cycle may prove optimistic. Matthews Asia strategist Andy Rothman thinks Beijing is comfortable with slower growth because its economic base is now much bigger, and incomes are still expanding. Home prices surged in early 2014, leading to tough year-over-year comparisons in 2015 that should dissipate by the second half. Improving data could test the assumption that Beijing must ease aggressively, and a looming U.S. rate hike could siphon liquidity and life from China’s party.
Unlike Japan, where a wilting yen helped lift exports and the Nikkei, China seems hellbent on supporting its currency, at least through November, when the International Monetary Fund decides whether to add the yuan to a basket of key currencies that count toward official reserves. Without currency depreciation, Beijing must work harder to goose growth.
Already, there are concerns that the market is fizzier than it seems. Because Beijing controls so much of corporate China, its market’s free float -- the portion of shares available for public trading -- is just 39%; that compares with 75% in Japan and 94% at the New York Stock Exchange. Measuring margin debt against this free float, instead of total market value, shows real leverage may be as high as 8.2%, “above any historical example that we can find elsewhere,” notes Macquarie analyst Matthew Smith.
Beijing may even be the one tapping the brakes of this high-speed train. Its securities regulator recently allowed institutions to lend stocks for short selling, and barred margin financing through popular umbrella trusts. Such steps to curb the enthusiasm triggered brief selling, but in the long run may prove healthy. Yet, it makes clear that Beijing is very much the rally’s driver.

 

[Coldweather]

Interesting dawg!

 

[neverbend]

obama has foolishly tried to isolate China and ends up being the one who is isolated. Now he has to either leave us out from one of the most important financial institutions in the world right now OR he has to eat some serious crow. Which option does any serious observer think this thin-skinned, petty man is going to choose regardless of how bad it is for the nation.

Once more this president who was supposedly an international "rock star" has utterly failed on the international stage! This guy couldn't even get the Olympics for his supposed hometown while he was still in the honeymoon phase of his first term. He failed to get a global warming accord that he so desperately wanted. He has alienated us from our closest ally in the Middle East, Israel, because he doesn't like Bibi personally and he is practically tripping over his can to get in bed with the Iranians just so he can claim something of a legacy even if it is a really bad legacy.

 

[Ricboff]

http://www.smh.com.au/business/comm...g-on-chinas-stock-market-20150514-gh1q5c.html

Twenty years after bringing down a major British bank, Nick Leeson is sounding alarm bells about China. Unless the country reforms its stock markets, he warns, it's only a matter of time until his earlier disaster repeats itself on a larger scale.
In 1995, Leeson was a 28-year-old master-of-the-universe wannabe running a trading desk in Singapore for Barings Bank. When markets turned against him, he tried to hide his losses with unauthorised trades – trades that were enabled by the lax oversight on Singapore's then-underdeveloped exchanges. Eventually, Leeson's losses mushroomed​ to $1.4 billion, shaking world markets and toppling a 223-year-old bank that held an account for Queen Elizabeth and financed the Napoleonic Wars. (Leeson, for his part, ended up in jail, where he wrote a book about his experience called Rogue Trader.)
Leeson is now warning that another Asian market could be ripe for similar manipulation. "In Singapore it was all about systems not being there to handle the volumes that were coming in," Leeson, now 48, told the South China Morning Post this week. In that sense, he suggests, 1990s Singapore bears a close resemblance to today's China.


As Leeson points out, China's new stock connect plan – which aims to link markets in Shanghai and Hong Kong – has caused the country's hectic trading activity to become even more frantic. Trading volume exploded within days of the plan's debut last month. It hit a high of $38 billion on April 9, and has remained roughly twice what average transactions were before its introduction.
What troubles Leeson is that China's market infrastructure may be getting overwhelmed by an avalanche of buy orders. There's a mismatch between the flood of data on stock dealing and the ability of regulators to track who is trading what – and how they're doing it. That opens the door to all sorts of troubling (and potentially illegal) activity.
"You have to keep pace with it and get ahead of the curve and typically [regulators] are behind it," said Leeson. "Wherever you've got change or a need to consolidate [information], there are opportunities for wrongdoing." He added that "anybody who is going to do something wrong is not standing still, whether that is cybercrime or anything else within the financial industry."
Chinese regulators are starting to grasp the problem. On May 12, one day after Leeson's warning, Securities and Futures Commission Chairman Carlson Tong Ka-shing pledged to clamp down on "any unusual share movement." But capital flows have accelerated so much – with millions of mainlanders having signed up for multiple trading accounts each – that it's not clear if regulators will know where to start. (President Xi Jinping's crackdown on international media hasn't helped matters. Shielded from the scrutiny of journalists, corporate China has become more opaque in its financial dealings.)
Unless Beijing builds a more open and predictable financial system at home, it will always be at risk of exporting its potential for instability. That's worth keeping in mind as China lobbies companies like MSCI Inc. to include its $7.8 trillion stock market on global indexes.


The indexes should wait until Beijing provides clearer proof of share ownership on its markets, crafts more predictable taxation policies, offers more hedging tools to traders and relaxes curbs on money flowing back into China. As long as China's financial reforms lag, Beijing shouldn't​ be given new channels to affect world markets. If China's stock markets are included on global indexes, it would allow China's economic troubles – data yesterday showed investment is now the slowest in 14 years and credit growth is weakening – to spill over to other countries. It would also provide an opportunity for financial fraudsters in China to expand their operations.
China shouldn't​ delay in taking bold and credible steps to create a transparent and reliable financial system. Otherwise, as Leeson warns, the country's rogue stock markets are liable to attract the world's rogue traders.








..........

 

[Ricboff]

brilliant run for the Shanghai exchange, i mean SCORCHING run...


http://www.marketwatch.com/investing/index/SHCOMP?countrycode=CN

3-yr chart

however, that severe vertical rise may descend just as fast if the Pacific Trade Deal goes thru ;


[h=1]China getting worried about U.S.-led Pacific trade deal[/h]

HONG KONG (MarketWatch) — The Trans-Pacific Partnership (TPP) trade deal may be controversial in the U.S., but in China it appears to be the object of great worry and, in some respects, seems to be driving policy in Beijing.
The TPP agreement, strongly supported by President Barack Obama, would create the world’s largest free-trade zone, stretching across half the globe. The treaty itself, as well as the “fast-track” negotiating authority sought by the Obama Administration, has come under criticism by some U.S. lawmakers, as well as various labor and business groups concerned about everything from wages to national security.
But in Beijing, the TPP is frequently seen as an “anyone but China” trade club that threatens the Chinese economy as a whole and even the country’s very future.
“The development of the TPP has profound impact on China’s economic reforms,” Partners Capital International Ltd. Chief Executive Ronald Wan told MarketWatch.
“In a way, it is directed at China, and China needs to take the initiative and deal with it,” he said.
Clearly, China’s leadership is concerned, all the more so as the economy suffers through a slowdown. The government’s newly released master plan for future manufacturing strategy — dubbed “Made in China 2025” — specifically cites the threat posed by the TPP to the country’s trade, still the prime driver of the Chinese economy.
The U.S. “has been vigorously promoting and building” the treaty, setting high bars for service trade, intellectual property, labor rules and environmental protection, the State Council (China’s cabinet) said.
Implementation of the TPP will “further impair China’s price advantage in the exports of industrial products and affect Chinese companies’ expansion” abroad, it said.
Given the perceived threat of the TPP, not to mention a proposed free-trade deal between the U.S. and the European Union known as the Transatlantic Trade and Investment Partnership, China has been taking various measures to safeguard its trade position.
Domestically, the country has expanded its creation of new free-trade zones after seeing some initial success in Shanghai, using the program as a way to lure foreign investment on a wider scale. Abroad, it has started its own series of trade initiatives, described as the “New Silk Road.”
Likewise, China has also created a new multinational lending organization — the Asian Infrastructure Investment Bank (AIIB) — along the lines of the World Bank and Asian Development Bank, often seen in China as under the effective control of the U.S. and Japan, respectively.
In spite of all this, Partners Capital’s Wan says China would see fierce trade competition and a rise in related disputes if the TPP forms with it excluded.


[h=6]New Cold War?[/h]Chinese leaders’ reaction to the TPP is very much tied to their belief that the planned trade deal is aimed directly at China.
This isn’t much of a stretch: In an April interview with the The Wall Street Journal, President Obama warned that if the U.S. doesn’t enact a free-trade deal with Asia, then China will write the rules for the region.
Obama’s remarks were apparently meant to counter opposition among some of his fellow Democrats, but Portland State University political science professor Mel Gurtov notes that China is also listening closely.
The selling of the TPP in Washington “requires hyping the China threat,” which in turn reinforces China’s suspicions, Gurtov wrote this week in his column for Asian Perspective.
“A clearer ‘us versus them’ worldview could not have been written,” said Gurtov, who is also wary of the agreement for what he sees as its favoring business interests over those of workers.
For its own part, China’s leadership also apparently believes Washington is out to get them, employing the same containment policy used against the Soviet Union during the Cold War.
An editorial this week in the state-run Xinhua News Agency argued against sliding into such a confrontation. “Compared with the Cold War era, countries are more closely related with each other, and their economic interests are more inseparable,” it said. “The old containment policies will no doubt eventually hurt oneself.”
But as Chinese Renmin University professor Shi Yinhong said in a separate comments to state media, a warming between Washington and Beijing will prove difficult, with the two sides clashing on a range of issues, from cyber attacks and territorial disputes in the South China Sea to longstanding difficulties over intellectual property.
“The relationship between the two countries is more tense than ever before,” Shi said.
...........................................


Clinton sells out country, now Obama ensuring those blue collar jobs stay abroad

 

[Ricboff]

It's clear China's economy is slowing down-- yet its markets continue to flourish. Shanghai is up 150% over the last 12 months. Govt has made it clear they want expansion; easing trading regulations for both domestic and foreign investors. MSCI declined to add China's 'A' shares this past wednesday until 'important issues' are resolved. It's expected they be added later in the year, yielding more upward pressure on prices. Vanguard is already buying China A shares. In addition govt dropped rates THREE TIMES IN THE LAST 6 MONTHS, wtf. ..........are they setting up for a massive correction, a repeat of the '08 debacle?

been selling covered calls on ASHR for a few months now. Premiums are sick, 3-4% sometimes on a bi-weekly

have the following in play, buy and write ASHR in at $53.58

sell 10 calls ASHR (54) july 2 @ 2.40

it's a weekly with poor liquidity and a wide spread. Got filled at my number, patience is a virtue . Premiums remain fantastic as IV is nutty. Stock price is at the high end of the bollinger bands.

'welcome aboard Mr.Ricboff. I got your back...........I thank you. Have a good day'





- if TPP goes thru, imho, a massive drop in China equities will occur. ugh.

 

[SheriffJoe]

China will dominate the next century because 'progressives' systematically ruined the greatest, freest country ever created in the last century.

 

[loomis41973]

Let's elect another crooked Dem so i can make a few more KKKK's.

 

[ScottL]

wicboff yaw mouph is getting rappy ;-)

 

[Ricboff]

Chinese firms put cash to work in stocks


http://www.marketwatch.com/story/chinese-firms-put-cash-to-work-in-stocks-2015-06-16-23103928

BEIJING — Chinese companies are turning to an unlikely source for profits in the soft economy: the country’s red-hot stock markets.
Take Dong Jun, who earlier this year shut down his factory making lighting equipment and electrical wiring and let go some 100 workers. The 50-year-old comes to the plant in the eastern city of Yancheng almost daily, but spends his time trading stocks on behalf of his company, Yanwu Keda Electric Co.
“Manufacturing is a very hard business these days,” said Mr. Dong, chairman of the company. “I want to make some money from the stock market and use the profits to restart my manufacturing business later, when the economy turns for the better.”

​

Chinese companies are finding stock investing an attractive option as the wider economy struggles with tepid demand, excess industrial capacity, persistently high borrowing costs and other troubles. Their interest poses a challenge for policy makers, who want to nurture markets companies can tap for investment capital, rather than creating a venue for speculation.
“The stock market is a big risk for China’s economy because the current rally isn’t supported by the economic fundamentals,” said China economist Zhu Chaoping at UOB Kay Hian Holdings Ltd. , a Singapore-based investment bank. “Regulators will have their work cut out for them keeping the market in check.”

'Mr Scott L make joke. Haha. He funny man. He must visit China....................China no bubble, no, no , no, no, no, no. You no worry. You buy.........have a good day'

 

[Ricboff]

China will dominate the next century because 'progressives' systematically ruined the greatest, freest country ever created in the last century.

http://investmentwatchblog.com/asia...opple-north-america-as-worlds-richest-region/


It’s been a fantastic ride in recent years for the global elite, particularly in Asia, where a scorching stock market has put the region on track to become the wealthiest in the world.
By the numbers, China saw its millionaire count soar to nearly four million in 2014, up from three million just a year earlier, according to a study released by the Boston Consulting Group on Monday. That swift rise to wealth is expected to push Asia-Pacific (excluding Japan) to the top of the regional rich list by next year, knocking North America down a peg in the process.
Global private financial wealth rose almost 12% to reach a total of $164 trillion, with almost three-quarters of the growth driven by strong markets around the world.
For now, North America still holds the most at $51 trillion, but for the first time, Asia-Pacific took out Europe in the second spot with $47 trillion, the report showed. That number is expected to hit $57 trillion in 2016, compared with a $56-trillion target for North America.

 

[ScottL]

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