AChina’s continuing to go absolutely bonkers. After a market crash of 30% that still leaves it about 70% higher than a year back, the Chinese Authorities have banned people from selling . Which as you might realize, is the stupidest way to stop the market from crashing. These people can’t sell for the next 6 months: Shareholders that own more than 5% Executives and directors of companies And Trading Halts, and Even Cops! To stop their shares from falling further many companies are telling stock exchanges to halt trading in their shares . The suspensions have locked up $1.4 trillion of shares, or 21 percent of China’s market capitalization, and are becoming increasingly popular as equity prices tumble. If not for the halts, a 28 percent plunge in the Shanghai Composite Index from its June 12 peak would probably be even deeper. Some of these companies, it seems, have pledged shares and borrowed money .… (Read On…)
[via Capital MindCapital Mind]
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