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A comment on Beijing’s Three Options: Unemployment, Debt, or Wealth Transfers. Parent comment

Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by simonh on Sunday September 09, 2018 @06:26PM (#17948116)
The Chinese government aggressively intervene in the stock market. It’s a long way from a free market, such as by providing incentives and promoting investing leading to bubbles, punishing release of accurate information about stocks and market activity that they don’t want people to know, even information that in western markets would be required to be published as an investors right, and preventing or punishing people selling during down swings.

As another poster pointed out, how comfortable would you be investing if the government might decide to threaten to punish you if you try to sell?

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Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by fspeech on Sunday September 09, 2018 @08:40PM (#17948613)
I don't think that is how bubble or market in general works. Last year prior to Chinese government's ban of bitcoin exchanges supposedly 90% of bitcoin trades were in China. Yet after the ban and a brief dive in price, bitcoin price continued to soar until early this year.

Anyhow large Chinese techs are all listed in New York or Hongkong. Most other large Chinese companies are dual listed on the mainland and Hongkong.

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Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by seanmcdirmid on Sunday September 09, 2018 @09:55PM (#17948888)
Not all large Chinese techs are even listed, let alone abroad. Huawei being a big one.
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Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by fspeech on Sunday September 09, 2018 @10:15PM (#17948968)
Right I forgot Huawei, which only adds to the evidence that stock market isn't the only mechanism for building capital.
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Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by simonh on Monday September 10, 2018 @03:19AM (#17950000)
You are quite right, the Chinese stock market is relatively small compared to the size of the economy, which is why it’s wild swings and their cack handed managment of it has done limited damage. The point is that just having enormous powers of executive action is no guarantee that action is going to be effective or even competently executed. Their mismanagement of the markets was just a case in point.

Eventually the Chinese government is going to face a real, full bore economic crisis. Hopefully that’s a long way off and they will learn many lessons before then.

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Re:Beijing’s Three Options: Unemployment, Debt, or Wealth Tr... by seanmcdirmid on Monday September 10, 2018 @12:52AM (#17949469)
Why...yes, rumor has it there is always the PLA :).
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