Data Analytics: The Chinese Stock market is smouldering eruption point for the globe...

• China accounted for 38 percent of the global growth last year, up from 23 percent in 2010, (Morgan Stanley) 
• $3.25 trillion loss is divided among around 90 million Chinese
• $6.7 trillion increase in China stock market in 12 months
• Corporate debt estimated at $16.1 trillion
• 150% rise over a year in the Shanghai Composite Index

• Goldman Sachs estimates  the outstanding margin financing, at 2.2 trillion yuan ($355 billion)  
• 1301 companies have had trading in their shares suspended.
•  A $2.6 trillion of wealth, tied up in these shares, is completely frozen

This blog offers no investment advice. Views expressed are here without risk or responsibility. 

Chinese regulatory acts are market killers...

China's market regulator Securities Regulatory Commission has reportedly prohibited  major defined as those with stakes of more than five percent -- company directors, board supervisors and senior executives.shareholders and executives of listed companies from selling their shares for the next six months.

This diktat applies to big" shareholders .  The psychological impact on the market is  tremendous. It has shut off selling and thus smothered any market activity. Investors are holding scrips which may be falling in value and they cannot sell at the best available price. Liquidity of shares, essential characteristic of an equity market is being virtually given a go by! 

The regulatory panic is understandable  given that there were  trading halts in  more than 1,300 companies - nearly half of mainland listings -  but the remedies may artificially and temporarily stem the tide but cannot induce confidence. 

Australian economy will be among the first to be dented to be closely followed by Singapore by a Chinese crash. These economies' exposure to Greece is negligible but Chinese interests are huge into these economies. Any climb-back by respective currencies/ stock markets has to be transient.

Without risk or responsibility