A couple jokes recently making the rounds on Weibo, the Chinese version of Twitter, shed light on the most talked-about subject in China right now.
Man: I’d like to report the loss of a Porsche!
Policeman: Where did you lose it?
Man: On the stock market…
Tom: I recently invested $1,000 in the market and it quickly turned in $60,000!
Jerry: How did you manage that while everyone else is losing money
Tom: Oh, my stocks all lost money. I recommended some stocks to others that all lost money. Those people broke my legs in anger and had to pay me compensation!
This bit of gallows humor gives some insight into what many Chinese investors are feeling right now. The Chinese stock market is currently in the midst of its worst losing streak since 1992.
After a year in which the market grew about 150%, the last several weeks have seen a paper loss of trillions of dollars. Many investors have recently jumped on board after watching the market run up for months.
The Chinese government is currently working to stop the bleeding by introducing some new rules intended to close some loopholes, but it will probably be several weeks or even months before the full extent of the financial damage is known.
It is said laughter is the best medicine, but we’ll have to wait and see if that applies to sick markets as well.http://www.hanbridgemandarin.com/blog/?p=137http://www.hanbridgemandarin.com/blog/?p=137http://www.hanbridgemandarin.com/blog/?p=137