Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Thematic (Sector/Industry)

China A-shares closed down almost 8% on Monday, on heavy volumes, the largest fall since February 2007. Whilst there were several negative announcements (corruption crackdowns, insider selling at SOEs, regulator speeding up IPO approvals), the KEY reason for the move was the margin trading suspension at three of the largest brokers in China. The brokers, banks and insurance sectors were all limit down. Below we look to explain:<ol><li>What changes to margin trading have been made, and the implications </li><li>How large margin trading in China is </li><li>Does this mean the government wants the stock market down </li><li>Our view on A-share market going forward </li></ol>

China A-shares closed down almost 8% on Monday, on heavy volumes, the largest fall since February 2007. Whilst there were several negative announcements (corruption crackdowns, insider selling at SOEs, regulator speeding up IPO approvals), the KEY reason for the move was the margin trading suspension at three of the largest brokers in China. The brokers, banks and insurance sectors were all limit down. Below we look to explain:What changes to margin trading have been made, and the implications How large margin trading in China is Does this mean the government wants the stock market down Our view on A-share market going forward 

This week's flash-crash in China: thoughts and implications

China

GF Securities Co Ltd. is a securities firm. The Company offers investment banking services including equity and bond underwriting, mergers and acquisitions consulting, financial consulting, brokerage services, and asset management services.

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GF Securities (A) (000776 CH)

This week's flash-crash in China: thoughts and implications

China A-shares closed down almost 8% on Monday, on heavy volumes, the largest fall since February 2007. Whilst there were several negative...

David Millhouse

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)