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Bloodbath In China: A Postmortem

A non-controlled demolition.

Anyone who was just itchin' to write a story about the day it finally fell apart for mainland shares in China got their chance today. The country's world-beating equity rally came to a screeching halt on Friday after Citic issued a government-approved sell call on red-hot People’s Insurance Company (Group). Sour sentiment was exacerbated by lackluster February trade data, which only added to the gloomy outlook for global growth following the ECB's dramatic forecast cuts. Read more And Now China Will Heighten Global Growth Concerns By Reporting Lackluster February Trade Data As far as People’s Insurance Company is concerned, just note that Beijing had seen enough after the stock, which started trading in Shanghai in November and changes hands at nearly four times the price of its Hong Kong-listed shares, almost quadrupled. It looks to me like PICC had risen by the daily limit for five sessions in a row, an encore of sorts, reminiscent of the euphoria that gripped the shares after they debuted in Shanghai late last year. On Friday, the stock traded limit down. If you ask the government Citic, the stock is "significantly overvalued" and might well get cut in half by the e
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4 comments on “Bloodbath In China: A Postmortem

  1. G says:

    Hey Heisenberg, remember when you said the US had more to lose from a trade war than China?

  2. Anonymous says:

    you need to be careful your commentary is always to the negative reporting the past not much commentary on lead indicators, it will take a lot to kill the uptrend in Chinese equities, most of which you write about is priced into markets.

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