Everyone focussed on Greece, but important events happened in China!
The People Bank of China started to weigh heavily in the market
21 Market Broker had to agree to prop up markets for over USD19 billion
It financed China Securities Finance Corp (owned by the Regulator) to USD 16 billion to expand its trading activities.
The Giant Sovereign Fund Central Huijin also disclosed that is investing heavily in Chinese ETF.
The new IPOs launch has been suspended
Practically we are just one step away from a Chinese Quantitative Easing and it shows that the Government has decided enough is enough.
The Market Broker intervention will probably last a few hours.
The Chinese authorities are in a clear panic. Now that all others industries are slowing they cannot allow also a market crash.
But remember that China has the largest reserves on the world and it is not a democracy.
And do not say “tough luck”. If China goes down, we all are going down as it is the new engine of the world.
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The other China event is that, for the first time, China authorised its military to intervene abroad to protect its national interest like the USA. A small but far reaching change.
investorpolitico 