Well, AHTC (used to be HTC that grew to AHTC and then AHPTC before becoming AHTC) is BACK in court again!
How I wish this is not as messy as the China stock market. LOL!!
China stock market triggered the 'circuit breaker' for the 2nd time this morning after trading started after barely 30 mins!
I will not list any news headline on the 2nd 7% plunges of China stock market in the 1st week of 2016 nor the latest news that the Chinese authority may, or will, suspend the circuit breaker mechanism.
Instead I am more curious about: WHY did the Chinese stock market plunged twice for more than 7% in 4 days?
My theory:
1. an inflated stock market with the murkiest operating mode in the world, san Russian or a few other under-developed markets maybe. Manipulation is rumoured to be par!;
2. the need to have HIGH returns from the stock market and the rush to 'get rich quick' by some of the 'big fishes' or 'big sharks'. After all, there is this unwavering belief that the Government WILL ALWAYS come to the rescue of the stock market in the Chinese stock market participants! The Government can't let 10-20 million 'well-to-do' stock market participants in some of the biggest cities to be 'up in arms against' it! There will be 'social instability' and it is NOT good for society and the ruling CCP!;
The sad part is: the Chinese government is WASTING resources to rescue this 'intangible economy' of financial market instead of investing the money on environment protection, agriculture development and other longer term sustainable economic development. It also SPENT big money to prop up the 'over-dependent real estate development related GNP growth' when the majority of its citizens really DON'T have the money to MAKE property investment!
So, tanking of the Chinese stock market is ACTUALLY very logical. Will the 'market' bite the bullet and release itself from the old and out-dated Western financial and commercial rules? I doubt! The 'bubbles cycle will continue' and the impact of its boom-and-burst will be felt again and again! SAD!!
How I wish this is not as messy as the China stock market. LOL!!
China stock market triggered the 'circuit breaker' for the 2nd time this morning after trading started after barely 30 mins!
I will not list any news headline on the 2nd 7% plunges of China stock market in the 1st week of 2016 nor the latest news that the Chinese authority may, or will, suspend the circuit breaker mechanism.
Instead I am more curious about: WHY did the Chinese stock market plunged twice for more than 7% in 4 days?
My theory:
1. an inflated stock market with the murkiest operating mode in the world, san Russian or a few other under-developed markets maybe. Manipulation is rumoured to be par!;
2. the need to have HIGH returns from the stock market and the rush to 'get rich quick' by some of the 'big fishes' or 'big sharks'. After all, there is this unwavering belief that the Government WILL ALWAYS come to the rescue of the stock market in the Chinese stock market participants! The Government can't let 10-20 million 'well-to-do' stock market participants in some of the biggest cities to be 'up in arms against' it! There will be 'social instability' and it is NOT good for society and the ruling CCP!;
The sad part is: the Chinese government is WASTING resources to rescue this 'intangible economy' of financial market instead of investing the money on environment protection, agriculture development and other longer term sustainable economic development. It also SPENT big money to prop up the 'over-dependent real estate development related GNP growth' when the majority of its citizens really DON'T have the money to MAKE property investment!
So, tanking of the Chinese stock market is ACTUALLY very logical. Will the 'market' bite the bullet and release itself from the old and out-dated Western financial and commercial rules? I doubt! The 'bubbles cycle will continue' and the impact of its boom-and-burst will be felt again and again! SAD!!
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