1. China $29.78b
2. India $8.37b
3. Russia $6.54b
4. Germany $4.48b
5. South Korea $3.74b
6. Australia $3.69b
7. France $3.38b
8. Indonesia $3.36b
9. Brazil $3.18b
10. Britain $3.05b
The
BRICS countries are quite well represented except for South Africa, four are in
the top 10 with 3 right at the top. Of the 10, 5 are Asian countries if Russia
is included as it straddles across Asia with most of its land mass in
Asia. The top 3 European countries are
also represented by Germany, France and Britain.
Politically,
the pro American camp is represented by 5 countries in Germany, South Korea,
Australia, France and Britain. India could be included in this camp but it
often wants to project as a non aligned independent power of its own right.
It
is interesting to note that Indonesia is among the top 10 shareholders, a sign
of an upcoming Asian economic power, to have the billions to spare. This third
most populous Asian country that was badly hit by the Asian financial crisis
seems to have recovered quite well under the watch of Yudhoyono and is likely
to continue to grow under another pro business and growth President Jokowi.
With
the West well represented among the top investors, the crying wolf by the
Americans and Japanese of transparency and accountability problem is going to
be just that, two boys crying wolf. It is also a good thing that these two
rascal are kept out of the bank and not allow to throw in the spanner in every
decision making process. Looks like AIIB is going to have a good start with the
right mix of shareholders in charge.
Not
to forget there is another big development bank in the BRICS New Development
Bank with another $100b to boot like the AIIB. These two new multinational
banks would be the new pillars of the New World Order to give the American and
Japanese controlled World Bank, IMF and ADB a run for their money.
China's economy alone supposedly is the 2nd largest in the world and it's GDP around USD $10 T. How much can the monies in AIIB finance 3rd world developments and soak up China's domestic overcapacity and keep their 1.4 billion population contentedly employed? A 100B capitalised development Bank that is not even in official operation but selling just an official line hope, driving the stock market on an IMH type bull-run mind-boggling frenzy. Some Chinese writers are calling the recent development especially since 2014 a 闹剧 , (satirical stage play) but really played out with literally tens of trillions ( a huge chunk borrowed money on margin trading ) of ignorant retail investors' life time savings / retirement funds. Btw, the trading volume in the Shanghai Stock market at its recent heights exceeded the combined total of Nasdaq and NYSE, supposedly the most advanced stock exchange in mankind history. The bubble in China has far outstripped even that of the Japenis in the 1990s. In Chinese it is called 空前..... unprecedented in the history of mankind ...... only 2 years into the job and the Xi-Li-Wang axis has already created such unparalleled history ...... can anyone imagine what would China look like at the end of their customary 10-year leadership tenure? The Chinese are also looking at 2 fantastic set of numbers similar to sinkieland 6.9 and 10, albeit 6900 and 10,000 points in the Shanghai Index ....... will it happen? China's recent months trading accounts opening rate is 4 million and now totalled around 98 millions nationwide, bigger than even the entire population of the largest nation in Europe namely Germany. How many more retail investors in mainland need to be sucked in for Shanghai Stock index to surpass the previous record of 6124 achieved in 2007? China's economy is heavily debt-ladden, many sectors with at least 30% over-capacity and an economy rapidly decelerating yet a stock market on a 80 degrees trajectory inclination. ....? Never happen before in history. .... Is that why some Chinese writers are calling it a 闹剧 ( satirical play ) .....? Thank God Xi was not born to old man ........ Comparatively our leaders are luckily not 闹剧 script writers on such scale ......
ReplyDeleteIronically, Xi's wife is a stage actress. Hopefully the scripts Xi is using to enact real life fresh, blood, tears events in the mainland is "not borrowed/ copied" from his "wife's stage scripts" ......... Behind/ beyond Xi, is (are) there somebody (ies) else ( not his wife ) .......
ReplyDeleteChina better managed the stock market bubble well and prevent it from growing bigger. Otherwise it is going to blow up and lead to the collapse of the real economy.
ReplyDeleteWhat is unreal is unreal. What is too good to believe is just that. Not real.
Their version of GDP is prolly arranged in the following relative importance:
DeleteAD/ AE = I + G + (X-M) + C
The I components consist of residential investments, inventories and capital goods and possibly make up 50% or more of their GDP. With the firms more or less fully leveraged and no more significant avenue of new borrowings, the eyes of the aristocrats shifted to .........ah hem ....... the fat geese/ chickens ( old 100 surnames aka 老百姓 ).
How to transfer the wealth ( life savings ) of the old 100 surnames ( 老百姓 ) to their (debt-ladden) cronies enterprises and municipal agencies / investment vehicles?
The promise of something too good to be real?
Now with the firms' war chests filled with the monies from selling say 1 cent shares @ inflated prices of $1 or more, again the firm's can carry business for a while to come and provide employment to ensure social stability and prevent any major unrest/ massive unemployment. .....
Costs are socialised with the old 100 surnames ( 老百姓 ) 买单 ( footing the banquets bills ) and profits privatised by aristocrats and aristocratic-linked members/ cronies/ families ....... etc etc
Pandemonium is averted in the real economy for now.
The C component especially the MPC part has been pathetic given the Conservative nature of Asian Values of thrift. The consequential "100 to few 100 years imprisonment of old 100 surnames ( 老百姓) blood sweat tears life savings in super long term investment in junk stocks" causing a drop in the MPC is marginal given the autonomous consumption is more or less inelastic and demand for essentials / basic necessities is also inelastic. Thus the old 100 surnames ( 老百姓 ) will continue to be enslaved for a lengthy period just to make a living and hold on to the overvalued stocks they bought for at least many decades if not centuries before they can see enough dividends if at all to plough back initial investments.
For now, with so much liquidity sucked from the masses into the firms coffers, the real economy is unlikely to tank except likely marginal dip in discretional consumption and likely hardly any change in autonomous consumption. ......
The masses are made the suckers for the past few decades of recklessness and frivolities ......
This episode could go down in history as the biggest transfer of wealth from households to firms/ cronies etc in any society .......
Years of toils, pain, tears, blood, sweat, agonies, ....... etc etc just evaporated like that almost overnight for millions and millions of old 100 surnames ( 老百姓 ) .......
This reminds one of the story of Robin Hood robbing the rich to help the poor. .....
DeleteThe modern day version seems to be :
"ROB-PING HU-D" : Robbing the Poor to further enrich cronies and the rich ......
//What is unreal is unreal. What is too good to believe is just that. Not real.//
ReplyDeleteTiok!
Like free goodies bag also?
Give 1 chicken wing take back 10 dozens of 10kg turkeys?
Must get rid of the loot cause.
ReplyDeletePart 1:
ReplyDeleteFrom 2008 till mid 2014, the Shanghai Index was going sideways below the 2500 range. Even after their massive 4 trillion RMB fiscal stimulus announcement during the 2008/ 2009 GFC, the stock market never budge and stood more or less in that range bound trading zone despite massive spinoff and multiplier effects in the immediate subsequent years.
Since 2012, the Chinese economy has been slowing down quite rapidly from 2-digit growth rate to below 8% and now possibly 7% or below. Ironically, the stock market started galloping and charged upwards from 2014 onwards despite huge signs of evidence of massive over capacity, economic deceleration and an (inevitable) ending to their mind-boggling building boom. The source ( and era ) of easy revenue from land sales of up to 100 Trillion RMB was more or less gone with no hope of returning for possibly decades to come.
In 2014, new initiatives were mulled and announced such as the new silk roads in the form of one belt one road detailing the blueprints of 4 major routes of new growth and regional/ trans-national cooperation. AIIB was one of the vehicles to bring those visions to reality. Earlier this year, another vision known asap China Manufacture 2025 was announced with fans and pomps to millions of mesmerised fans not unlike movie stars fans chasing their idols. The stage was set and frenzied fever-high stock market intoxication encouraged and embraced by official medias, social medias, ...... etc etc.
Part 2:
ReplyDeleteEnter countless IPOs.
What happened in the stock market subsequently was quite bizarre and unparalleled even in American history of the greatest inventions and IPO launches.
Most if not all stocks just went ballistic and with some rising for more than 50 consecutive trading sessions in a row and unbelievably with trading halts having to kick in with new share prices rising to their max each session.
Almost everyone was stampeding into the market.
Even overseas Chinese joined in the buffaloes herd-like mentality ( to the waiting lions, hyenas, tigers, leopards, etc all lying quietly and motionlessly in the grass plains ) and sprinted into the Chinese market despite no strong and compelling economic fundamentals except some national parliamentary sessions, conferences, meetings followed by announcements and follow up of some grandiose visions and future directions.
Part 3:
ReplyDeleteIn sinkieland national radio especially Chinese stations, many analysts and even professors were so optimistic that they were so dead sure the Shanghai Index would breach the 5,000 points level even when it was still around the 2,800 to 3,000 points range. It was absolutely baffling.
Some went on to predict that this (mad) bull-run would go beyond 6,000 points in the SHI.
Without strong ( historical ) earnings as backup, many stocks earned nicknames one will only read and hear about in ancient mythological novels such as Journey to the West.
Names such as "Demon Stocks" ...... in Chinese of course. .... OMG. How many face palms ...... ? U decide.
Literally "demon stocks" that can go into trading halts unabated for multiple sessions in a row in their meteoric ascend like "demon-possessed" with supernatural powers and what one blog commenter said make belief "刀枪不入" superstitious supernatural prowess as witnessed in the 1900 Boxers Rebellion massacre of the Chinese fighters moared down by German and European machine guns because their leaders told them they were bestowed with supernatural "刀枪不入" prowess, the few chosen ones ...... "血流成河" literally translated "blood flowing like river" was the ensuing stark realities and outcomes.
The forbidden city then was trampled by western troops in 1900 and looted of many prizeless national treasures.
The imperial Empress Dowager had to escape to the inland to avoid an embarrassing capture by the western forces....
It was such follies that set the momentum for the penultimate collapse of the empire 12 years later in 1912.
Part 4:
ReplyDeleteBack to the 21st century Chinese stock markets.
Without strong hard evidence to justify many optimistic projections, the mass propagandas on national official media were lapped out mindlessly.
One nearer and recent example of such frenzied stock chasing saga could be the penny stocks crash in 2014 that wiped out about 10 billion dollars of mostly retail investors life-savings, retirement and "coffin" $$$.
However, the recent Chinese bubble was played on a scale thousand of times bigger. And not unlike the (false) promise given to hopeful poor Chinese labourers in the 19th century of gold-laced roads in California ( bcos San Francisco translated in Chinese is literally called "Gold Mountain" 旧金山). Many were sold and traded as slaves and back breaking labourers when they landed on Amrican soil.
In recent stock chase played out, it was 21st century make belief "刀枪不入" stocks with "demon powers" ( 妖股)?
It was quite hilarious if one understand Chinese writings. .... Mythological nicknames strapped on some Chinese stocks to "give them ballistic wings to defy gravity" such as "妖股" (demon stocks, in literal translation) .....
What and how would the beef hamburgers chomping Yankees Wall Street high level executives like ex-Lehman Brothers CEO etc etc view such "bizarre Chinese stock market antics (and manipulation )" and can only "concede" that they are a far second behind some of the Chinese?
Going forward, what to come next can only be "jaw-dropping " oohs and ahhhhhs like Chinese "demon-like" high platform divers displaying unbelievable inhuman executions of near perfect turning and twisting in the air in an Olympic competition ..... or world class "magicians" enacting one after another " logic-defying magical stunts" .......
But in real life, often such stunts are "unreal " or unsustainable. .....
Part 5:
ReplyDeleteMaybe the Chinese being the most populous in the whole world and some of the "best business minds" around can amaze the world yet again and pushed their markets yet to another record, if not within 2015/ 2016, then within the next few years to come despite recent events .......?
Along this arguably heart-stopping and even heart-wrenching ( for some ) turn of events playing out, is there anyone who are super lao heroes and wish to place their bets on "妖股"( "demon stocks") or "盗抢不入" supernatural inhuman prowess possessed "stocks", pls "CCS" ........ oops ...... kee chew .......
Pray hard we never, never have such people ( regulators ) in the midst and such saga ever play out right in front of our eyes ..... otherwise, anything less than a gazillion face palms would not suffice ..... No?
Part 6:
ReplyDeleteThe Chinese authority in recent days are bringing out bazookas to tame a "monster" they self-created within the past 12 twelve months with the PBOC giving unlimited financial backstop to some of their entities managing the stock market operations.
Btw, based on much earlier announcements, the Chinese regulatory bodies are supposed to row out many other rules and regulations such as the abolishing of limiting the supply of shares able to be traded in the market by end of 2015 ......
With many such considerations ( worries) at the back of traders mind, how would they react psychologically and play their "cards" in the coming months in the biggest casinos ....... oops stock market in the world , going by the trading volume attained during the heights of the recent super rally ......
Are there more "bizarre episodes " coming up ...... and more "bizarre mythological stocks nicknames"........?
How about names appearing in movies like "A Chinese Ghost Stories" such as "黑山千年老妖" given as nicknames to some new impending IPO stocks waiting ( eagerly ) in the wing ......
Would it help to drive the SHI to their dream 6,900 or 10,000 points ( of possibly no return ) and PE ratios of some new small caps in large enough digits for some oldies here to try there luck in our 4D here ........
Good Luck!
'Pray hard we never, never have such people ( regulators ) in the midst and such saga ever play out right in front of our eyes ..... otherwise, anything less than a gazillion face palms would not suffice ..... No?'
ReplyDeleteWe had our fair shares of mindless penny stocks that should not be allowed to be listed. Now we allowed computers to be plugged into the system to play and cheat small investors. And the market is in ICU but they keep dressing it up like a walking corpse.
I'm waiting for one corrupt Chinese official to sapu a large chunk of money and disappear.
ReplyDeleteHahaha...that would be fucking hilarious!
Good things will not come to the people lah. All the money earned will go to the rulers of those countries.
ReplyDeleteEverywhere the same. Austerity for the working class and luxury for the ruling class. Profit over the people.
ReplyDelete