Shanghai another NEW RECORD HIGH
- Thread starter S2007S
- Start date
Time 2 buy stocks
Jubak's column a month ago:
"...That's because the true big dog on the Shanghai and Shenzhen stock markets, the Chinese government, has acted to restrict the supply of shares on the domestic stock markets. The Chinese government still owns majority positions in most of the companies that trade on these exchanges. Some figures say the government owns about two-thirds of all the shares of companies that trade on the domestic stock market.
That gives the Beijing government power over any rally. The government could stop any stock market boom dead in its tracks simply by selling its immense shares holdings. That would add enough supply to the market to overwhelm even the fast-growing demand from individual investors.
Of course, the government has a vested interest in not crushing domestic share prices. The biggest winners in stock market rally of the past 18 months have been the wealthy elites of the Communist Party and the Beijing government, and the entrepreneurs and corporate managers connected to those officials. Fortunes have been made by corporate managers -- who officially receive meager salaries -- from stock options that have soared in value during this market run."
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Should start a betting line they get the index over 5000 by end of the summer.
"...That's because the true big dog on the Shanghai and Shenzhen stock markets, the Chinese government, has acted to restrict the supply of shares on the domestic stock markets. The Chinese government still owns majority positions in most of the companies that trade on these exchanges. Some figures say the government owns about two-thirds of all the shares of companies that trade on the domestic stock market.
That gives the Beijing government power over any rally. The government could stop any stock market boom dead in its tracks simply by selling its immense shares holdings. That would add enough supply to the market to overwhelm even the fast-growing demand from individual investors.
Of course, the government has a vested interest in not crushing domestic share prices. The biggest winners in stock market rally of the past 18 months have been the wealthy elites of the Communist Party and the Beijing government, and the entrepreneurs and corporate managers connected to those officials. Fortunes have been made by corporate managers -- who officially receive meager salaries -- from stock options that have soared in value during this market run."
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Should start a betting line they get the index over 5000 by end of the summer.
very very interesting, forget about about 2500 happening anytime soon!!!!
AND ANOTHER RECORD CLOSING!!!!
SSEC Shanghai Composite 3,122.81 3:00AM ET Up 48.53 (1.58%)
This market moves on avg, .5-2% higher on daily basis. Tonight an intraday high of 3150 should happen.
By the that was one of the quickest 10% corrections I have ever seen. About 14 days it lasted.
AND ANOTHER RECORD CLOSING!!!!
SSEC Shanghai Composite 3,122.81 3:00AM ET Up 48.53 (1.58%)
This market moves on avg, .5-2% higher on daily basis. Tonight an intraday high of 3150 should happen.
By the that was one of the quickest 10% corrections I have ever seen. About 14 days it lasted.
Let's see how yen behaves after the housing data. Japan and China have been rising last week based on US housing improving. That appears not to be the case today, so I expect yen to strengthen and China and Japan equity markets to drop this week, and China could drop bigtime as it is already stretched on the upside..
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