Why is China's Stock Market Crashing?

Bo Zhiyue
Diplomat
The volatility of the stock markets has become a political issue but political intervention has not been effective. It is likely that Chinese leaders will find ways to boost the confidence in the Chinese stock markets which could backfire.

As China’s Market Tanks, What Becomes of the Companies Hoping to List?

JURO OSAWA and WEI GU
Wall Street Journal
As the market soared in China, nearly 20 Chinese companies whose shares trade in New York got bids to go private in management buyouts.

Chinese Investors Who Borrowed Are Hit Hard by Market Turn

DAVID BARBOZA
New York Times
Millions of ordinary investors like Mr. Gong, who piled into an ever-soaring Chinese stock market over the last year, are bracing for a roller-coaster ride.

Conversation

07.02.15

How Much Does the Chinese Market Matter to the World?

Yukon Huang, Ira Kalish & more
China’s main market, reflected in the Shanghai Composite Index, has fallen 24 percent since June 12, losing $2.4 trillion in value. While many analysts are focused on the financial crisis in Greece, some are beginning to wonder if China's woes...

Why are China’s Stock Markets so Volatile?

Josh Noble
Financial Times
Home to the world’s largest equity markets after the US, China is still extremely volatile with benchmark indices often swinging as much as 10 per cent in a matter of hours.

Why it is Better to Stay Out of China A-shares

John Authers
Financial Times
Where did the argument for China A-shares go? In the last two weeks the case for the booming stock market of mainland China has turned at least two somersaults.

Beijing Works to Calm Tumbling Stock Market

Gabriel Wildau and Josh Noble
Financial Times
Beijing will do whatever it takes to avert a collapse in the stock market; authorities have already taken steps to boost sentiment and liquidity, including an interest rate cut.

Chinese Stocks Fall Into a Bear Market

Keith Bradsher
New York Times
China’s central bank cuts interest rates and fails to stem the route in Chinese share prices; the Shanghai and Shenzhen stock markets closes with steep losses.

Investors Flee China Funds in Historic Rush

Alanna Petroff
CNN
Chinese funds just experienced the biggest exodus of money ever.

The $6.5 Trillion China Rally That’s Making Stock-Market History

Kyoungwha Kim
Bloomberg
 The sum is the value created in just 12 months of trading on Chinese stock exchanges, a rally some say has gone too far.

Media

05.29.15

Is the Shanghai Stock Market Bubble Finally Bursting?

David Wertime
A customer strolls into a bookstore, goes the popular Chinese joke, and tells the salesperson: “I’m looking for a book with no killers, but much bloodshed; with no love, but great regret; with no spies, but constant paranoia. Can you make a...

China Raises Red Flag on Its Stock Markets

Chao Deng
Wall Street Journal
Regulator warns investors not to borrow money or sell property to buy shares. 

Caixin Media

12.22.14

Wild Stock Market Is Detrimental to Reform Efforts

Chinese leaders' pledge to strengthen risk control at last week's Central Economic Work Conference could not be more timely, given the frenzied exuberance in the stock market.In a statement released after three days of meetings, the...

Beijing Cannot Count on Easy Money to Sustain Its Economic Miracle

Ruchir Sharma
Financial Times
Just three months ago the main Chinese stock market was dormant. Since then it has surged 30 per cent and has started to show signs of the manic trading that normally does not appear until a bull market has been gathering steam for years.

In Twist, China Stock Market is Haven Amid Storm

Adam Shell
USA Today
When you think of safe-haven investments, Chinese stocks don’t normally come to mind. But shares listed in Shanghai have been soaring recently at a time when most stock markets around the globe have been sliding.

Media

03.26.14

A Wrinkle to Those Hot Chinese Tech IPOs

Investors, ready your wallets. In the past week, Sina Weibo, China’s massive microblogging platform with 280 million users, and Alibaba, the operator of China’s largest online marketplace which generated $1.84 billion in revenue in the fourth...

China’s Poly Culture Plans Hong Kong I.P.O.

Patrick Frater
Variety
State-owned enterprise Poly Culture, one of China’s leading auction, cultural and film investors, previously planned to list its shares on the Shanghai Stock Exchange, but dropped them earlier this year due to regulatory uncertainty.&...

Huayi's Chairman Joins Ranks Of China Movie Billionaires; Stock Climbs To Record

Russell Flannery
Forbes
Huayi’s shares have climbed by more than 160% in the past year amid rising prospects for home-grown entertainment industry content in China.  They gained 5.5% today at close at an all-time high of 42.2 yuan.

China Stocks World’s Worst Losing $748 Billion On Slump

Richard Frost, Weiyi Lim
Bloomberg
Four years after China's growth helped lead the global economy out of a recession and won the admiration of luminaries from billionaire George Soros to Nobel laureate Joseph Stiglitz, the nation’s stock...

Caixin Media

07.01.13

Renewed Growth on the New Third Board

The State Council announced on June 19 that it would expand the New Third Board, an over-the-counter (OTC) market for non-listed companies’ shares, to include all small and medium-sized enterprises (SMEs) nationwide.One of the experts estimated the...

China's Banking Mess: It's the Politics, Stupid

Minxin Pei
Fortune
After the People's Bank of China (PBOC), issued a reassuring statement on June 25 that dispelled investors' worries about the lack of liquidity in China's interbank loan market, Chinese stock markets halted their plunge, and the rates...

China Stock Market Plunges 5.3%

Julie Makinen
Los Angeles Times
The Shanghai Composite Index fell 5.3% Monday, notching its largest single day drop since August 2009 and hitting its lowest level since December, amid fears that some Chinese banks are facing a liquidity crunch and the overall economy is slowing.

Stocks Rally on China, German Data, Euro Gains

Herbert Lash
Reuters
Global equity markets and the euro rose on Wednesday as strong Chinese trade data and signs that Germany may escape a sharp slowdown pushed shares to five-year highs worldwide, with U.S. benchmarks climbing to all-time records. 

China’s Richest Man Says Capital Markets ‘Suck’

Lilian Lin
WSJ: China Real Time Report
 Zong Qinhou's sentiment speaks volumes, highlighting the monumental obstacles investors face in China as they look for places to park their money in hopes of a return. 

Private Equity in China: Which Way Out?

Neil Gough
Deal Book
Three-quarters of private equity deals struck between 2001-12-worth $230 billion-have yet to pay off, a new report shows. 

Caixin Media

05.25.12

Hard Lesson for China Concept-Stock Investors

Imagine discovering on your first day as a new CEO that your employer is merely a shell that may be destined for a shameful delisting on the Nasdaq Stock Market.That’s what happened recently to ChinaCast Education Corp. CEO Feng Yiyi, who is now...

Caixin Media

05.18.12

Era Ends for China’s Legendary Stock Picker

Investors who closely followed the stock picks of one of China’s most successful brokers are wandering in the wilderness—and wondering what will happen next to their unemployed luminary Wang Yawei.In April, and without warning, Wang resigned from...

Caixin Media

03.19.12

Fair Trade

A typically opaque investigation can begin with a tip from a Shanghai Stock Exchange official and end with a ten-year jail term for a businessman convicted of insider trading. What happens in between is a carefully guarded secret.Likewise hidden...

Sinica Podcast

05.07.11

Crazed Madmen, Foreign and Domestic

Jeremy Goldkorn, Gady Epstein & more from Sinica Podcast
Despite losing almost a dollar for every dollar of revenue last year, Chinese Facebook clone Renren (人人网) made a spectacular launch on Wall Street last week, raising U.S.$743.4 million in a crazed initial public offering. So it’s no surprise that...

Reports

01.01.06

Seasonalities in China's Stock Markets: Cultural or Structural?

Jason D. Mitchell and Li Lian Ong
Sara Segal-Williams
International Monetary Fund (IMF)
In this paper, we examine returns in the Chinese A and B stock markets for evidence of calendar anomalies. We find that both cultural and structural (segmentation) factors play an important role in influencing the pricing of both A- and B-shares in...

Viewpoint

12.14.92

China Plays the Market

Orville Schell & Todd Lappin from Nation
With the Chinese stock market in turmoil earlier this month, Orville Schell, Arthur Ross Director of the Center on U.S.-China Relations, wrote about the dramatic crash for The Guardian: “Why China’s Stock Market Bubble Was Always Bound To Burst.”...