There comes a time in every country when you find the stock markets tanking and every regulator decides it’s their responsibility to bring the markets back up. This time it’s China. After their stock market fell 30% in less than a month, regulators have begun to see the fall as a huge problem. Even though they didn’t complain on the way up: The fall is probably a result of way too much leverage driving the markets. Chinese investors – and they are a majority, with only 3% foreign participation in mainland indexes – borrowed up the wazoo to speculate in Chinese stocks, which took the markets up huge. At one time, there was an IPO that went up 10% limit, for every single trading day for nearly two months. That’s a whopping gazillion % return (fact: Your mind turns to jelly after about 300% in two months, this is much much more.… (Read On…)
[via Capital MindCapital Mind]
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