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IBDvalueinvestin (99.58)

Sorry for those holding Chinese stocks. Chinese stocks crashed overnight -6.7%

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August 31, 2009 – Comments (2)

Not only is it bad for Chinese stock holders today but its even worse for those holding Chinese fertilizers/agriculture stocks today because American/Canadian fertilizer/agriculture stocks and farm equipment stocks are crashing as well on a report that Agriculture demand will be down. That report plus the fact that we are entering the slow part of the year for fertilizer/agriculture sector is amplifying matters. Pre-market POT is down -1.66, MOS is down over -1, CAT down -0.76, DE down -0.53, Chinese agriculture stocks to beware of now due to this bad sentiment are CGA, SDTH, NOEC, SEED

 

China's Shanghai shares fell 6.7%, breaking beneath the key 125-day moving average used by Chinese investors to delineate a bull vs a bear market, amid disappointing corporate earnings and upcoming new share issues. Market players said there was little sign of foreign investors in the market, with some investors selling on the fact the election was over... Hong Kong shares gave up 1.9% on Monday, marking its first monthly loss in six months, as Shanghai-listed stocks dived to a three-month closing low amid worries about liquidity in the market drying up. China Merchants Bank fell 3.2% to HK$16.88 after the country's sixth-largest lender raised its maximum fund-raising target for a planned rights issue by 22%, due to a likely tightening of banks' capital adequacy rules.

2 Comments – Post Your Own

#1) On August 31, 2009 at 9:40 AM, catoismymotor (67.50) wrote:

All the markets are due for a correction. We can look forward to many good foriegn and domestic stocks going on sale in the near future.

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#2) On August 31, 2009 at 11:08 AM, hhasia (61.29) wrote:

The markets are down in China and HK because the rules here are tougher. The banks here cannot hide behind the accounting shell game. They report losses that are real and the prices drop, plus the capital requirements force them to be on a healthy path.  Although volitile, it is healthy environment with an underlying economy not dependent on debt and consumers.

HHASIA

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