SaxoTV
China Crisis: Is Beijing about to fire bazooka as investors take cover
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Jeff Halley from Saxo Group in Singapore gives us a market update as exhausted Asian traders head home for what could be another sleepless night. Tens of millions of Chinese investors have lost around USD 3 trillion in the last month alone as shares tumbled. A bull market that had inflated by over 100% within a year, suddenly started to slide and, so far, Beijing's panic measures have failed to stop the slide.
Jeff discusses the next move by China's central bank and suggests that a 'bazooka' could be deployed to blast away the negative sentiment.
So far the central bank and government have ordered state run enterprises not to sell off shares they hold, insurance firms have been told to buy small-cap shares and even insider trading regulations have been relaxed among a raft of measures.
The market rout has spread through Asia, into FX markets, with commodity currencies like CAD, AUD and NZD under "sustained pressure" according to Jeff.