Shanghai Composite makes new post-crisis low (again, again, and again)29 August, 2012, 15:14. Posted by Zarathustra
By now, we are all bored by the recurring headline that seems to appear every other day. That is: Shanghai composite makes new post-crisis low.
It was only on Monday and this headline appeared, and now it appears again after bouncing yesterday as Baosteel offered to buy-back shares (and among other rumours and rubbish). Now we are back to the pathetic situation where the S&P500 is hovering around post-crisis high, Shanghai is hovering the post-crisis low.
Of course, we hope that by now you understand exactly why Chinese equities are even doing worse than Europe. Chinese economy slows more than expected, the stock market bubble burst in 2007 triggered a mega-bear market, and, who could have forgotten, that Chinese corporate profits are collapsing.
We hope that tomorrow we will be writing something like “Shanghai composite rose by 10% one [insert whatever rumours you find amusing]”.