4/09/2015

China MUST not go down the path of self destruction


When I read about China offering Shanghai and Hongkong as the alternative international stock exchanges to the world without HFT/computer trading and massive manipulation, I was pleased that China has found a way from the decadent and corrupt exchanges of the western model. The western model of stock exchanges and financial systems are not sustainable, operating under rules and systems that are worst than the casinos, fraudulent, unfair and designed to cheat the innocent masses.

I was shock to read in the local media that China is going to allow the banks to buy over security brokerages and licenced to trade in the exchanges. And they know what this means, the strong will get stronger and the weak gets weaker. The banks, with their financial muscles, will edge out every other player and expedite the early demise of the stock exchange industry. If China cannot see what would happen to their thriving stock markets that are relatively free from HFT and massive speculations by the big funds, they should look at the state of health of the Singapore stock market. It is dying, in a state of denial, and no one knows how to save it but pretending that it is doing fine, very fine.

China must not allow the banks to buy over the brokerages to indulge in unfair trading in the stock market. China must resist this move and not be pressurised to conform to a fraudulent stock market/financial system designed by the West. Their stock markets are healthy and doing well. Do not be deceived by the snake oil sellers and take the slippery path to self destruction. The banks must be kept out of the stock market, to do banking and not speculations and trading equities, writing derivatives and selling derivatives based on equities.

China beware, and know what you are in for. Do not be misled by the snake oil sellers and the blind. Do not fall into a trap and commit the same mistakes as Singapore and unable to unwind without killing the stock market. Sit tight and watch how the western modelled stock exchanges collapse in due course, in the next few years. Do not be conned to join the bandwagon of destruction!

Just look at what is happening at the Hong Kong Exchange and what is happening to the Singapore Exchange over the last few days or months. You want Hong Kong to be in the same deplorable and pathetic state of dying and fading into oblivion?

14 comments:

Matilah_Singapura said...

>> China must not allow the banks to buy over the brokerages to indulge in unfair trading in the stock market.

It's got nothing to do with "Chinese or "western" nature. This is HUMAN nature, and MONEY has the same effect on everyone. i.e. Plenty is GOOD, but MORE is better, and having ALL, is The Best.

Anonymous said...

China is just learning from PAP's stock market.
Wait until China starts learning PAP-Ho Ching Temasek Sovereign wealth management model.
Then redbean will really faint.

Chua Chin Leng aka redbean said...

So far the Chinamen are doing quite well, doing the right thing. See how the funds are rushing into Hongkong and in two days Hangseng shot up by nearly 2000 pts. Now they need to prepare for the sell down like they did the last time. They need to prepare a war chest to defend the market when the foreign funds pull out their money.

The Chinese SWF was initially modelled after Singapore, got dragged into some stupid investments and lost a big chunk. They learnt their lessons and are on their own now, not to be deceived by foreign snake oil sellers again. Only the daft will keep repeating the same mistakes.

Look at Hangseng, full of trading activities and the foreign funds are doing well. Look at SGX, still in a state of denial. They must be preparing for a state funeral when they got no choice but to pull the plug.

Anonymous said...

redbean
Over the years I have come to respect and appreciate Tan Cheng Bock's Presidential Election Manifesto: "Do The Right Thing"

How any Prime Minister would keep Tan Cheng Bock out of a cabinet position or as a Member of Parliament is beyond me.
PAP's loss of Tan Cheng Bock is a gain for Singapore and Singaporeans.

Anonymous said...

It's "Do the RIGHT thing".
Not "Do the CORRECT thing".

Chua Chin Leng aka redbean said...

Anon 12:59, it seems that you are able to read my mind. I just finished an article mentioning Cheng Bock. I think I will post it tomorrow.

Anonymous said...

Look at SGX, still in a state of denial.
RB 12:49 pm

Maybe SGX know something that u don't?

Have u heard of the Chinese idiom 皇帝不急急死太监 meaning the emperor is not worried, but his eunuchs are worried to death?

Anonymous said...

PAP's loss of Tan Cheng Bock is a gain for Singapore and Singaporeans.
Anon 12:59 pm

If that is so, then why only 35% of Sinkies voted for Cheng Bock in the last Presidential Election?

Furthermore, did Cheng Bock make the Sinkie opposition strong, united and ready to be govt?

Chua Chin Leng aka redbean said...

Anon 1:40, you may be right. The thing is that they think what they are doing nobody knows what is happening. It is going to implode all because of vested interest.

b said...

China very smart one and they will manage it so well that both indexes will surpass all those in the west. Come money come come.

Anonymous said...

Furthermore, did Cheng Bock make the Sinkie opposition strong, united and ready to be govt?
April 09, 2015 1:47 pm

What about Tony Tan?
Did Tony make PM Lee operationally ready to be Prime Minister?

Anonymous said...

PAP GOVT TO ALLOW NURSES FROM INDIA TO PRACTISE IN S'PORE UNDER CECA

http://therealsingapore.com/content/pap-govt-allow-nurses-india-practise-spore-under-ceca

Let's Vote out the traitors in our Pro Alien Government.
Tear up CECA
And reclaim Singapore for Singaporeans

Anonymous said...

Traitors will be remembered in history books.

Brokerageman15 said...

Tan Cheng Bock, even as a PAP MP, was sympathetic to the opposition and even stood up when he believed that things were unfair to the opposition, and were being hindered from being elected. See: http://bit.ly/1aFr6pz
Shows that Tan Cheng Bock was, and still has an independent mind, no wonder why the PAP was so worried of him even though he was under them. He wasn't even invited to LKY's funeral too