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In China, Raging Bull
It was a blockbuster week for Chinese equities. An out-and-out barnburner.
On Friday, mainland shar
China inc a meme stock?
A good time to exit (any remaining positions in Chinese equities). Sometimes it is best not to look a gift horse in the mouth. 🙂
Those MCHI puts. So cheap… Who can resist.
It sounds like everyone here has already made up their minds that these new measures are guaranteed to fail. “Pushing on a string” and such. Hey, when was that phrase last a common derision? In the USA in 2009-2010. Skeptical as I have been, I’m willing to keep more of an open mind this time. What could go wrong with those “stimie checks”?
“Even if it wasn’t state-buying, some of the bonanza was investors trying to front-run the state. Either way, it’s not real, organic demand. ” But a very common source of buying in Asia. The democratic government of Taiwan is quite open about their stock market intervention. Japan joined the club a few years back when their market was on its back. Well done, by he way.) Singapore is more demure about their buying, but it’s there. Then in the good old USA, it was common to read right wing conspirators breathlessly talking up a mythical Plunge Protection Unit anytime stocks rallied in in the early teens. (There MUST have been something there…. I read about it on the internet!)
I think they are not nearly enough, thus very likely to fail, in reviving China’s economic growth.
For China’s stock market, who knows.
I assume the Chinese govt can create rallies whenever it wants to, by headlines, injecting money, and giving directions to banks, brokers, institutional investors. At the same time, stock trading is not the “high quality growth” that Xi favors. So I wonder if the govt would spend the necessary money to sustain rallies.