news BREAKING NEWS - China suspends Stock Circuit Breaker Rule

[TheBaldOne]

Reports are coming in that use of the Stock Circuit Breaker Rule which has caused two shutdowns this week of the Chinese stock market is to be suspended.

This is of course important for all those participating in or even just watching the Chinese domain market.

http://www.bloomberg.com/news/artic...stock-circuit-breaker-rule-csrc-says-on-weibo

 

[Domain Monk]

how will this reflect in chineese domain market

 

[TheBaldOne]

The one thing I doubt is that it will have 'no affect'. The flow of capital out of the Chinese stock market may result in investors looking for other investments - or it may even reduce liquidity in the market, a case of roll the dice and see how they land at the moment I think.

 

[Name Trader]

WOW. If this is true, it's going to be a steep fall on Friday 8th Jan, me thinks. There appears to be a lot of pent up demand to sell by the retail investors (90% of the liquid market), judging by the circuit breakers being applied twice this week already.

It's unlikely the sales will end up in cash for long. Knowing Chinese investors, they'll be looking for a new home. So it's likely to creep back in fairly quickly into stocks. I have no idea if the average joe knows about investing in domains. But if they see the returns, they will invest. So I think it's not a negative for domains. The currency drop, should boost domain desirability. But when you're dealing with a burgeoning market almost entirely driven by Chinese investors, who can't sell KXJQ.com to anyone other than another Chinese, maybe the currency might only play a small role. IMHO.

Of course. The opposite could also be true. Removing these controls might actually stabilize the markets. It's going to be an interesting day.

 

[Derek Guad]

The one thing I doubt is that it will have 'no affect'. The flow of capital out of the Chinese stock market may result in investors looking for other investments - or it may even reduce liquidity in the market, a case of roll the dice and see how they land at the moment I think.

I just posted a forum on this very concept! I am so curious how this affects the whole Chinese market, and subsequently the domain market. Too early to tell definitely I guess.

 

[TheBaldOne]

Just over 30 minutes until the Hang Seng and Shanghai stock markets open!

I am hitting the sack now so guess I will have to wait until the sun rises to see what has happened.

 

[Name Trader]

The US fell by 400 points Thursday. The biggest ever opening 4 days of a year ever on the Dow.

 

[Silentptnr]

Thus US fell by 400 points Thursday. The biggest ever opening 4 days of a year ever on the Dow.

Crazy

 

[DomainVP]

disaster averted... whew!

 

[TheBaldOne]

disaster averted... whew!

At the moment it seems that the Chinese government was buying up shares.

Now we have to wait and see how much the the Yuen devaluation will be, and whether it will occur this weekend. My best estimate is the Yuen will be devalued by 10% - 12%, and it may happen this weekend. The problem for China is that with the longer they do not devalue the Yuen the greater the chances that it has to be devalued more.

Also do not think that the Chinese stock market is out of the woods yet, it will still fall further over the coming weeks and months IMO, the fall will be greater if the PBOC does not get the devaluation right and the Yuen subsequently falls further after the devaluation or even worse if the devaluation is delayed too long.

Just my 2 penny worth, and most people think I charge 3 pence too much for my opinion.