PDA

View Full Version : China Stock Market


Buffett Jr
08-07-2015, 03:39 PM
So this is all in the news recently.

Stocks have gone up 150% in the past 12 months, so from $100 to $250. They have now gone down 30%, so from $250 to $175. They are still up 75% in 12 months time yet people are crying about it. Bank stepping it to prop it up, companies putting their shares on trading halts, etc.

I don't understand. If I was up 75% in a year, I'd be really happy.
Harvey Specter
08-07-2015, 03:51 PM
So this is all in the news recently.

Stocks have gone up 150% in the past 12 months, so from $100 to $250. They have now gone down 30%, so from $250 to $175. They are still up 75% in 12 months time yet people are crying about it. Bank stepping it to prop it up, companies putting their shares on trading halts, etc.

I don't understand. If I was up 75% in a year, I'd be really happy.But would it be lower if over 700 companies didn't put themselves into trading halt (solely for the purposes of stopping a sell down), lots of other companies hitting the 10% speedlimit, and the only support coming from government buying.
Harvey Specter
08-07-2015, 03:52 PM
That 75% increase also assumed that you bought in 12 months ago. What if you bought in 2 months ago with borrowed money. You are now facing margin calls and have probably lost all your money.

So for some, this is not an issue, for others, this is their life savings lost.
stoploss
09-07-2015, 01:13 PM
Ouch , Agrarinvestor you still with us ????
Joshuatree
09-07-2015, 02:16 PM
When Your Banana-Guy Starts Trading Stocks, You Know It's Over (http://www.zerohedge.com/news/2015-04-24/when-your-banana-guy-starts-trading-stocks-you-know-its-over)
Harvey Specter
09-07-2015, 04:08 PM
That 75% increase also assumed that you bought in 12 months ago. What if you bought in 2 months ago with borrowed money. You are now facing margin calls and have probably lost all your money.

So for some, this is not an issue, for others, this is their life savings lost.An example of why you need to consider the timing of entry:


Fonterra paid 18 yuan a share, or the equivalent of $780 million in March, for its stake in Beingmate, whose shares are now worth about 12 yuan having previously soared as high as 30 yuan in May.
Zoolanda
11-07-2015, 10:19 AM
If you believe that the Chinese market will stabilise over the longer term AGF is an interesting play.