For the 2nd time in a month, China’s Shanghai Composite entered a correction, plunging 10% from local highs as headlines of delayed IPOs and large-scale steel ‘dumping’ at a loss combined with global monetary policy fireworks and European event risks. The rest of the more highly sensitive and manic Chinese equity markets are also plunging with CHINEXT and CSI-300 down over 7% in the last month (and 17% from the highs in the case of the former).
Chinese stocks have gone nowhere in a month…
Before you read on – STOP and look at the volatility we are talking about here… multiple 10 to 15% swings in major stock indices in the last month. Compare that to the US market’s idiocy where we have seen no vol whatsoever in the last six months.
Of course – as US equities roared to record highs today in the face of the most serious Grexit fears yet and a Fed that just admitted the economy is FUBAR – Chinese stocks are for once derisking responsibly (for now).
But there are more troubles in big China as Reuters reports China steel exporters are dumping inventories at a a loss…
Some Chinese steelmakers are selling their output abroad at a loss, according to traders and a producer, as a group of global industry bodies urged governments to take action over rising shipments from China.
Chinese mills had sold steel overseas at a loss of up to 200 yuan ($32) a tonne and cut the export price of hot-rolled coil by 5 percent to $340-$350 a tonne, free-on-board basis, this week compared to last week, according to traders and a producer in Hebei, China’s top steel producing province.
These mills were also selling at a loss to the domestic market, they said.
“The domestic market is too weak to consume high output
Originally appeared at: http://davidstockmanscontracorner.com/china-turmoiling-dumping-pumping-and-slumping/
China Turmoiling—–Dumping, Pumping And Slumping is a story from: BitcoinWarrior.net