Just had to put this up from Zero Hedge:
China Bans Use Of Terms “Equity Disaster” And “Rescue The Market”
…And so, with every attempt to manipulate the (Chinese) market higher falling flat in the face of selling pressure from the hairdresser/ farmer/ banana vendor day trading crowd (which has now thrown in the towel on the whole “it’s easier than farm work” theory and now just wants to break even and head for the hills) the only thing left for China to do is “fix” the narrative.
In other words, when banning selling doesn’t work, the logical next step is to ban talking about selling…
…So apparently, Beijing will now prevent journalists from accidentally jawboning the market lower so that Party mouthpiece media outlets are free to jawbone the market higher.
Needless to say, we doubt if this hail Mary attempt to
rescue the marketwill do anything at all to save China from its homemade equity disaster.
Indeed. I haven’t paid too much attention to the market slide in China because I just figured the Chinese government would order stocks to go higher – telling the money bags in China that they’d better buy or else, ya dig? But if China’s market has got a huge number of small traders who are now getting burned…well, you can shoot a dozen bankers who don’t cooperate: its a much more difficult prospect to shoot 100,000 small investors who are bailing out.
There is one thing I do know about markets – when average folks start borrowing money to invest in it because it will always go higher, then it is crash time. We’ll see how this plays out – but China has already lost $3 trillion in stock value since June…ain’t looking too pretty.