China moves to save the equities market!

China moves to save the equities market!
Sep 19, 2008 03:22
ICEBERG Points: Join Date: Sep 10, 2007 Status: offline	Yesterday, the goverment annouced to scrap the stamp tax on stock purchase while that on share selling remained unchanged at 0.1 percentand. This policy has taken effect today. Stimulated by this move, the Shanghai Composite Index rises to its daily limit, up 9.45 percent or 179.24 points to 2,075.08 points. The Shenzhen Component Index also surges, up 8.97 percent or 588.38 points to 7,151.45 points. It seems that this move is very effective. And Central Huijin Investment Co., Ltd declared on Thursday that it would it would buy shares of three major Chinese banks to stablize the stock prices. The three banks are ICBC, BOC and CCB. Seems that the central government has made up its mind to save the stock market now. Long time ago, the investors had made their request to the government, hoping it can intervene in the stock market. However, the government didn't take some effective measures. This time, affected by Wall Street financial hurricane, the governement finally took two measures to stablize the market. Good news for those investors! What if the government still doesn't take some measures? I guess that the equities market will be dead very soon. Do you think it is too late for the government to take measures to save the equities market?

Sep 19, 2008 03:22

ICEBERG
Points:
Join Date: Sep 10, 2007
Status: offline

Yesterday, the goverment annouced to scrap the stamp tax on stock purchase while that on share selling remained unchanged at 0.1 percentand. This policy has taken effect today. Stimulated by this move, the Shanghai Composite Index rises to its daily limit, up 9.45 percent or 179.24 points to 2,075.08 points. The Shenzhen Component Index also surges, up 8.97 percent or 588.38 points to 7,151.45 points.

It seems that this move is very effective. And Central Huijin Investment Co., Ltd declared on Thursday that it would it would buy shares of three major Chinese banks to stablize the stock prices. The three banks are ICBC, BOC and CCB. Seems that the central government has made up its mind to save the stock market now.

Long time ago, the investors had made their request to the government, hoping it can intervene in the stock market. However, the government didn't take some effective measures. This time, affected by Wall Street financial hurricane, the governement finally took two measures to stablize the market. Good news for those investors!

What if the government still doesn't take some measures? I guess that the equities market will be dead very soon. Do you think it is too late for the government to take measures to save the equities market?

Sep 19, 2008 22:14

CANADAGUY
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Join Date: Oct 1, 2007
Status: Offline

Iceberg as you have probably learned already, today the U.S. government promised to bailout all of the ailing financial institutions on Wall Street which could cost more than half a **trillion** dollars.

This is an unprecedented move. Markets around the world responded positively, but it remains to be seen whether even this will be enough to fight off a recession in the U.S. and further financial problems.

I'm not convinced this will be enough. Stay tuned, because the markets will decide in the coming days and weeks what the verdict will be.

Sep 19, 2008 23:21

GARYKINKADE
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Join Date: Jan 8, 2008
Status: Offline

Yup......things are going to be interesting in the States this coming week. Fasten the safety belt.
AIG has been taken off of the DJIA and replaced by Kraft.
Short selling will not be allowed in the future.
Our government financially backing these institutions will be like "hot air" replacing "hot air"
Greed, lies, non-transparency and B.S. have caught up with the capital system. And as CANADAGUY said "stay tuned" , that is, if you're interested in such matters.

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