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?