IT.COM

information Chinese Government Rules Affect CHIPS

Spaceship Spaceship
Watch

frank-germany

domainer since 2001 / musicianTop Member
Impact
14,596
I just heard that the chinese government put a regulation on domains

leverage should be 3% now
was before it was 28%

as far as I understand it means they are allowed to make max 3% profit on a trade

that either means:

no trades no more
or 10 time more trades
 
Last edited:
1
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
Do you have a news source link ?

What will happen to someone who bought a 5 Letter Chip on Sedo yesterday as can be seen on namebio

tmhcc.com - 65,000$

Maybe the highest sale of a 5 Letter chip so far!
 
0
•••
Do you have a news source link ?

What will happen to someone who bought a 5 Letter Chip on Sedo yesterday as can be seen on namebio

tmhcc.com - 65,000$

Maybe the highest sale of a 5 Letter chip so far!

I don't think there is much danger of making more than 3% on that deal ;)
 
2
•••
This is actually quite funny, as I had a domain inquiry from A China based buyer, and he was asking some weird questions, if we could report the selling price higher blah blah, seemed really shady, and could not quite understand why he was asking such weird questions. Why would a government limit profits, who can work off a 3% margin, Say an average chip at $1800 a 3% margin is $54?
 
1
•••
so if this is true ,prices will eather skyrocket or the chips niche is dead.
 
2
•••
I just heard that the chinese government put a regulation on domains

leverage should be 3% now
was before it was 28%

as far as I understand it means they are allowed to make max 3% profit on a trade

that either means:

no trades no more
or 10 time more trades

well this is just a rumor, or isn't it?. I have heard others before and none of them turned out to be true.
 
0
•••
would be interesting to read the original news article
 
0
•••
That must be a misunderstanding.
 
0
•••
as far as I undestand it by now
it has to do with lending money in order to buy domains
 
1
•••
As I read it this is about lending on domains. Used to be you could buy a domain for $1000 by putting up $300 (about) and borrow the rest. IMHO that's pure crazy. Domain prices are not stable enough, by far.

I am not clear if the new policy means you put up $30 or you put up $970 on a $1000 domain. Hopefully the later.

IF this means lower loans it will slow speculation and reduce the depth of crashes.

This has no direct connection with the profit margin.
 
1
•••
I haven't heard anything about this at the moment from inside China, but doesn't surprise me if they did.

Has nothing to do with limiting profits.

It has to do with shadow banking/lending in China - trust and wealth management products being sold outside of normal government channels - this was fine for a while but bad debts are really climbing to astronomical levels and the government is trying to stop all of this to decrease bad debts...

Before you could have a domain valued at $1000 and be able to use it as collateral for other loans (there's no specific number because the shadow banking is run by numerous different people/companies but say 28% = $280 loan). If what the op is saying is true then now they would only be able to use the domain to now only get a 3% loan = $30).

This is mainly for people playing the ponzi debt game in China which is huge.
 
0
•••
Do you have a news source link ?

What will happen to someone who bought a 5 Letter Chip on Sedo yesterday as can be seen on namebio

tmhcc.com - 65,000$

Maybe the highest sale of a 5 Letter chip so far!

End User sale here. Chips not involved.
 
0
•••
That is actually good because high leverage is how their stock market tumbled.
 
0
•••
0
•••
0
•••
0
•••
When I hear news like these, I wonder if people even understand those terms.

Leverage refers to debt to equity ratios.

I highly doubt that Chinese banks even issue any debt based on domain and I doubt they'd consider it an asset that can be used as collateral. US Banks won't issue you a dime based on domain collateral )
 
1
•••
When I hear news like these, I wonder if people even understand those terms.

Leverage refers to debt to equity ratios.

I highly doubt that Chinese banks even issue any debt based on domain and I doubt they'd consider it an asset that can be used as collateral. US Banks won't issue you a dime based on domain collateral )


I doubt its getting spring soon ...
 
0
•••
Without sources, this is a non-information lol
 
0
•••
yes I can not give you quotation
so you may forget about it

sorry for the hassle
 
0
•••
Back