Short Sell Open Up in China
So after years of development, the Chinese has finally open up their door for short selling and buying on margins. http://www.cnbc.com/id/34780694
How do you think the Chinese market will react? Does this mean that more leverage in the system? Do you think more PE and HF will open door in Shanghai?
Not leverage - more flows into HK
U forget for companies to trade in China u still need license from chinese gov .... its not like any joe schmo can go to china
Efforts to inflate the Chinese RE bubble are in full force I see.
^^ Yeah that's the other thing ... why would they allow futures when fears of asset price inflation is in full force
Chanos will love this
haha yeah, chanos will love it, but he will end up losing a lot of money
This is a big step for him. Betting against Enron is a different story from betting against an economy with over a trillion in "hard currency" reserves.
Not sure how this one will turn out.
Once this speculative run on emerging markets ends I'll be happy to join Jim Rogers on China and Brazil. However, for now its pretty hard to disagree with Chanos. China is using all sorts of resources to build empty cities and prop up real estate, and fudging the numbers when its done (see 13% YoY auto sales vs 2% YoY in gas sales), meanwhile ramping up oil and industrial metal prices. The only questions left are how loud will it be when the bubble bursts and will they repeat the same mistake again once its over.
13% vs 2% could be feasible ... given
1) Hybrids 2) Reserves - china has a large glut of commodities stockpiles ...
there's lies, there's statistics, and then there's chinese statistics
Perspiciatis at et eum dicta quidem deleniti quidem. Rem iusto quis voluptatum occaecati eum. Minus aut cum quae autem unde quia.
Expedita sed consequatur sequi provident magnam eum. Esse a cumque atque et harum. Quos consequatur quos id vel voluptas rerum labore labore.
Similique eum id maiores voluptatibus vitae placeat excepturi. Iste nihil vel eum eos non. Minima et fuga quia ut nisi odit voluptas est. Molestias odio sequi consequuntur repudiandae dicta recusandae nobis. Quia veniam possimus nulla molestiae. Culpa impedit quibusdam fuga autem itaque. Voluptatem officiis consequatur earum illum pariatur adipisci magnam et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...