China’s Index is falling again. After a 6% day yesterday, it’s down another 5% today. According to Bloomberg : The number of traders with more than 10 million yuan ($1.6 million) of shares in their accounts shrank by 28 percent in July, even as those with less than 100,000 yuan rose by 8 percent, according to the nation’s clearing agency. While some of the drop is explained by falling market values, CLSA Ltd. says China’s rich have taken advantage of state buying to cash out after the nation’s record-long bull market peaked in June. Well, that’s what they will do, if the government decides to buy stocks. The government has prevented holders of more than 5% in companies from selling till November, and when November comes there will be yet another round of selling. The companies that were routed in the earlier fall decided to halt trading to hold the fall, and when they returned to the markets, they have been punished too.… (Read On…)
[via Capital MindCapital Mind]
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