Last summer, millions of farmers, housewives, security guards and a litany of other newly minted daytraders, opened enough new stock trading accounts for evey man, woman and child in Las Angeles – in just one month.
The excitement was palpable – and before anyone knew it, the proliferasion of around a half back door margin lendings chanells pumpped an additional CNY1.5 trillion into an already frothy market. Without putting too fine a point on it, didn’t work, it started to uravel and the party got concerned about social instability.
China tried intimidation first by arresting a journalist who dared to comment about what was then a rather nascent “nation team,” a kind Frankstein monster designed to shore up markets and support buy using state cahs an state-affiliated funds to buy equirij
“China intervened to support its stock market on Friday, helping the benchmark index cap its best weekly gain of 2016 before policy makers meet to approve a five-year road map for the economy, according to two people with direct knowledge of the situation,” Bloombger writes., adding thatt. “”State-backed funds bought primarily bank shares, while some local branches of the securities regulator asked listed companies, mutual funds and brokerages to stabilize the market during the National People’s Congress and the Chinese People’s Political Consultative Conference, said the people, who asked not to be named because the matter isn’t public.”
Note that this is simply the same China did las year behond the militatry parade. No one in the Party wants to ruin the pageantry with the nation focused on the a stock market rout.
via Zero Hedge http://ift.tt/1Tv6Onl Tyler Durden