Monday, June 29, 2015

Supply and Demand in the Chinese Stock Market.

In June, which as of this posting has not ended, yet, the China Securities Regulatory Commission published 135 prospectuses on its website, more than double the average for the last three months, and close to twice as high as the previous high point, shown above as blue columns.  That was also the same month the stock market experienced its worst two weeks since 2008, shown above as a red line.  Perhaps the stock market's appetite has finally been satisfied?

There are only two days left in June, so it is likely that June will close lower than May, the first time the stock market has lost value month-over-month in years.  However, the People's Bank of China's announcement on Saturday has not been priced in.  Has anyone written a book called Shenzhen 10,000, yet?