- 04 Jul 2015 13:51
#14578385
Forget about Greece; that was yesterday. In China, the government has encouraged its citizens to invest in stocks for years. However, in the last 3 weeks stocks have lost about 30% of their value. The “Financial News” (official publication of the central bank) blames Morgen Stanley, which had recommended selling Chinese stocks, for why 90 million Chinese lost 2.4 bln in 3 weeks. It continues by claiming that the US follows “hidden motives” and asks if the US is trying to torpedo China’s reforms. The country is in shock and engages in a witch hunt for the culprits that ended the long-lasted boom. 470 of the 2,800 titles were suspended from trading on Friday. In the last week, 100 companies took their stocks off the market due to excessive losses.
Politicians are in panic because it isn’t only that small savers have lost but also country’s elite. China’s 45 richest have lost 34 bln in June (socialism has come a far way ;-)). The mood is getting dirty and criticism of the government increases on the Internet. Analysts say that the government should save the market “with money and not with empty words.” If the bubble bursts and China’s overrated stocks crash there would be serious consequences for the banks, consumption and industry. Analysts are telling the government to set up a rescue fond worth 75 to 100 bln USD to stabilize stocks. Government officials, who lost substantial amounts, are among those promoting this plan (real handy to have a government job ;-)).
FAZ (in German)
Politicians are in panic because it isn’t only that small savers have lost but also country’s elite. China’s 45 richest have lost 34 bln in June (socialism has come a far way ;-)). The mood is getting dirty and criticism of the government increases on the Internet. Analysts say that the government should save the market “with money and not with empty words.” If the bubble bursts and China’s overrated stocks crash there would be serious consequences for the banks, consumption and industry. Analysts are telling the government to set up a rescue fond worth 75 to 100 bln USD to stabilize stocks. Government officials, who lost substantial amounts, are among those promoting this plan (real handy to have a government job ;-)).
FAZ (in German)