Shanghai falls further！ A hellish scene of Chinese people screaming and yelling． Individual investors are crying．

On October 11, 2024, the Chinese stock market closed on the fourth day after the National Day holiday. The closely watched Shanghai market fell further. Please see below (chart taken from investing.com: same below). This is Shanghai Composite. The closing price on Friday the 11th was 3,216.84. The previous day’s closing price was 3,301.93, so this is approximately -2.58% from the previous day’s closing price. This is better than the “approximately -6.5%” drop that occurred three days ago, on the second day after National Day (October 9th), but it is still at a level that could be called a mini-crash. If we look at the monthly chart, where one candlestick shows one month’s price movement, it looks like this: Although it is only just after the 11th (Friday), the October candlestick is already showing a long bearish candle. It has already surpassed the closing price of last month’s long bullish candle. The huge crash occurred as soon as National Day was over, but Western investors are saying, “I told you so.” Since China’s stock market is made up of many individual investors from China, this result has turned China into a hellish scene of screams and uproar. The rise in the Shanghai market, which began on September 24th, continued until Monday, September 30th, just before the market was closed. This is an abnormal increase. As mentioned earlier, this is the result of the Chinese national team and others investing money in the cause of China’s prestige (LOL). Retail investors jumped on the bandwagon of this extraordinary rise. On Chinese social media, people are hyping things up with claims like “now is a once in a lifetime opportunity,” and the number of idiots who have been fooled into investing money has increased dramatically. After all, even people who have never traded stocks are opening securities accounts. People who borrowed money from various places during the holidays to create “balls’’ and invest them invested money again on Tuesday, October 8th, the day after National Day, even though they should have stopped. *Social media is full of stories of people using their homes as collateral or forcing themselves to borrow money from acquaintances and relatives. ↑An example of a video posted on social media by a Chinese person. Stock prices have fallen and people are crying, saying they have lost everything. However, the results are as shown above, and although on the 8th the price managed to avoid falling below the previous day’s level, it still posted a long bearish candle (this indicates that many people invested money believing that the price would rise “on this day as well”). ↑The Falun Gong-affiliated Chinese language media outlet “Kan China” has released a very interesting video. If you can speak Chinese, please take a look. You can see the Chinese people in rage and sobbing. “It’s okay to cry. I am a new investor who put in 1 million RMB yesterday, but today I only have 260,000 RMB left. Just like you. Yesterday, I made a profit of several hundred thousand yuan, but I held on to most of it instead of selling it, and today it’s all gone. I’ve also lost 30%.” Not only did he lose his profits, but he also lost his principal. What was going on behind the scenes while this individual investor was being deceived was the company selling its own stock. In other words, stock prices have risen abnormally and a lot of idiots have been caught, so they should sell while prices are high. “What a great catch, I’m very pleased.’’ Well, I can’t say for sure that stock prices will never recover — but what’s left is a huge amount of individual investors with unnecessary debt. If the stock price does not recover, the purchased shares will incur an unrealized loss, and if the transaction is on margin, a margin call will be made at some point, and if this cannot be covered, a large amount of selling (stop loss) will be required. Also, of course, they cannot pay back the money they borrowed to make the balls. It’s a truly hilarious scene from hell. It is said that Chinese authorities will launch huge economic stimulus measures on October 12, 2024. I hope the stock price goes up. (Yoshida Hunting @dcp).

https://youtu.be/k7vOvC5f07I

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https://money1.jp/archives/135929

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