At the first sign of disappointing language from Beijing, in...
At the first sign of disappointing language from Beijing, investors and short-sellers dumped on Hong Kong equities today. NDRC did nothing spectacular by way of market-facing stimulus. But they did take solid steps in laying the foundation for longer-term economic support.
Part of me thinks they (NDRC) did made “disappointing” announcement on purpose fearing the market bubble that was forming right before our eyes. The frenzy of new investors opening brokerage accounts would have set off alarm bells in Beijing. So, nip it in the bud? Very possible. ![]()
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This doesn’t look like the end of this new bull market. A lot of detractors will be coming out saying “i said so” and “it’s over”. I don’t think so.
Like I said previously, planned stimulus measures will take time to work their way through the economy. Fiscal measures aimed at bolstering the stock market have been successful to-date. And to stay successful Beijing needs to make sure that a repeat of the 2015 boom-bust does not happen. Today’s announcement may have been one way to apply the brakes before the market loses control.
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EZ_money : if they are talking about stimulus then more likely it's coming. they always play games getting there with the public
102566976 : i don't think the NDRC has done anything wrong. if anything, it's the investors and speculators that had read too much between the lines of whatever and whenever some officials is farting
some official: *moves his finger and writes on a paper*
speculators: NEW STIMULUS BAZOOKAS!!! TO THE MOON1!!1!1!1!