More Chinese brokerage executives "disappear" and cannot be contacted

Discussion in 'General Trading Discussion' started by baudwalk, Dec 7, 2015.

  1. baudwalk

    baudwalk Senior Investor

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    Following on the post-August investigations of the Chinese market manipulation -- http://www.bullmarketboard.com/thre...ket-manipulation?p=30116&viewfull=1#post30116 -- and crash, a total six CITIC Securities executives have "disappeared." This now includes two of their top investment bankers -- http://www.scmp.com/business/compan...ing-six-eight-senior-execs-two-more-disappear -- that cannot be contacted. CITIC is China's largest brokerage firm. It's not clear if the latest two have been detained or aiding in the investigation. I would wager on detention. :)
     
  2. Corzhens

    Corzhens Senior Investor

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    What is your suspicion on the disappearance of those Chinese stock brokering executives? Are they secretly arrested by the government or are they in hiding in some other countries? I frequently go to Hongkong and some businessmen there say that China's laws are very strict hence the rich businessmen there have dwellings in Hongkong or Macau that they use for short vacation. Just a note, Chinese laws are harsh that's why I was not comfortable when I was there last January for a brief visit. What if they find something illegal in my luggage?
     
  3. baudwalk

    baudwalk Senior Investor

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    You are physically much close than I to China, but I started listening to Radio Peking on shortwave radio in the early 1950's, and changed its name to Rsdio Beijing and then China Radio International. Shortwave gave way to FM radio outlets in major USA cities, and the Internet has given us direct access to local medus. The carefully chosen words, inscrutable, have only become more complex in my opinion.

    To your question, SCMP has the reputation of reporting deiberste leaks and "positions" to the western workd. I also look at or scan the Interfax and Xinhua press agencies and newspapers: China Daily, Global Times, Hangzhou, Hong Kong Free Press, People's Daily, People's Liberation Army Daily, Qianlong, Shanghai Daily, and Shanghai Post. I also look at Caixn, Wapo's China Watch and SINA. And I'll scan the press releases posted on the home pages of the 3 Chinese stock exchanges.

    Late at night I may be watching or listen to Bloomberg, BBC and NHK as I have explained in other threads. I will be scanning Twitter, also discussed in another thread, and in all that crosses the tablet screen and, instead of depending upon the popular media, I'll go to the country of origin to look at the unfiltered version, recognizing the information may have a slant to it (just as the USA MSM distorts our news).

    The late August Chinese market crash and the government reaction has been interesting. Ripples are still spreading around the globe, and the strong US dollar is causing traders to have ulcers. I no longer trade Chinese stocks (I made some good money in a Chinese tekecom decades ago.) but some of my portfolio (e.g. AAPL, F) have significant tie-ups with China.

    Now, I don't do all of this every day but I pay attention to words and activity. I absolutely don't get all of this right but it keeps my attention.

    Does this help explain where my thinking is?
     
  4. phoenix2015

    phoenix2015 Well-Known Member

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    Why doesn't this surprise me? Everything about China to me wreaks of shady! China is the Real Slim Shady!! Their stock market is propped up by government pension funds to keep it from tanking again. The have undervalued their currency yet again to keep the costs of their exports low. They have empty cities that were built and are just sitting there with tumbleweed rolling through the streets which,by the way, figures into their GDP the average citizen is so proud of. Shady real estate agents disappear locally leaving overpriced apartments that no locals can afford, with two or three different investors holding the same deed to the apartment. These are some of the reasons the thought of a Chinese-led investment bank(read AIIB) is a scary prospect.
     
  5. baudwalk

    baudwalk Senior Investor

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    http://www.bloomberg.com/news/artic...e-poised-to-fall-before-weekend-economic-data
    Today's market slump continues the trend downward as important people connected to markets disappear. It's too soon to know what happened today but it surely makes some traders and firms very nervous.

    Read the original story here:

    http://english.caixin.com/m/2015-12-10/100884565.html
    All this intrigue inspires confidence in the Chinese markets.
     
    Last edited by a moderator: Jul 8, 2016
  6. Corzhens

    Corzhens Senior Investor

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    Pardon me but I don't clearly understand why China had to devalue their currency. My course in college is Industrial Engineering and I am weak in economics so that's the reason why I don't understand. And what is the effect of the devaluation to their economy? If it is good then why don't other countries do the same? Maybe Greece can recover faster with that style?
     
  7. anders

    anders Well-Known Member

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    China probably devalued their currency to encourage its export business - other countries can buy Chinese goods for less - and to pay down sovereign debt at a cheaper rate.

    The problem with their recent devaluation was that it more or less came out of the blue: other markets weren't prepared for it, and that caused a hit on those other world markets. The irony is that the US has been wanting China to devalue for a long time; and when they did, the Dow Jones took a loss.
     
  8. Onionman

    Onionman Senior Investor

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    On the Greece front to do that they would have to exit the euro and that's a whole different ball game. That's the problem with the one-size-fits-all approach for the euro. Greece would have to take back control of their central bank and a drachma currency mechanism. It could work for them or it could also send them into a structural slump that they might struggle to recover from. It's not as if they've got a sizable domestic manufacturing base to drive exports.
     
  9. petesede

    petesede Guest

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    I remember reading a year ago about a Chinese publicly traded company, I think it was in Norway... but they made shoes, and after some shady stuff, the CEO, literally just disappeared and never came to work again. It was bizzare listening to other people in the company trying to cover for him and stuff.

    I am not going to say this is normal in China, but..
     
  10. baudwalk

    baudwalk Senior Investor

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    http://www.bloomberg.com/news/artic...g-offer-to-hedge-funds-led-police-to-its-door
    News broke on December 6 that CITIC executives disappeared from public view, but the fall-from-grace story picked up speed in June.
    This investigate piece is fascinating reading. Recommended.
     
    Last edited by a moderator: Jul 8, 2016

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