Despite the reassurances from western media and talking heads that China is unimportant (both its stock market and economy), Asian economies continue to show signs of contagion from China's slowdown as Thai exports weaken and Hong Kong trade tumbles. But it is the blame game that is top of mind tonight as Chinese regulators switch attention to Hong Kong brokers in their “investigation into malicious sellers.” As SCMP's George Chen notes, first they blame a “foreign force,” and now they blame Hong Kong, always careful not to blame themselves. After 3 down days, Chinese stocks look are opening slightly higher as there is little follow-through from yesterday's PPT rescue or today's panic-buying in US markets especilaly in light of an additional $100bn injection into the sovereign (rescue) fund.
Just throw another 100bn at it…
BREAKING: Chinese Gov injects US$100B to sovereign fund's direct investment subsidiary to buy assets abroad – Caixin pic.twitter.com/Y3OzOUfBEv
— George Chen (@george_chen) July 29, 2015
As a reminder, China closed on the weaker side overnight…
But it appears the PPT save overnight and extension through the US session is not helping China at the open…
Update: Buying pressure arrived shortly after the open ..
Not exactly the follow-through they would have hoped for…
But here is the chart everyone is looking at…
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As SCMP's George Chen explains, blame continues to project outward…
Though as we saw yesterday,. any strength is being used by locals to sell (not short) into government strength as one farmer exclaimed – fighting back tears, “I have have ruined my entire family… I will nevere touch stocks again.”
