{"id":11464,"date":"2015-08-26T08:01:26","date_gmt":"2015-08-26T13:01:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11464"},"modified":"2015-08-26T08:01:26","modified_gmt":"2015-08-26T13:01:26","slug":"china-loses-all-control-arrests-journalist-financial-executive-over-market-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11464","title":{"rendered":"China Loses All Control: Arrests Journalist, Financial Executive Over Market Crash"},"content":{"rendered":"

China Loses All Control: Arrests Journalist, Financial Executive Over Market Crash<\/a><\/h3>\n

For two months, China has been on a quest to control both the stock market itself and the narrative around the stock market.<\/p>\n

After an unwind in the CNY1 trillion back alley margin lending complex sparked a late June selloff, China cobbled together a plunge protection team run by China Securities Finance (an arm of CSRC) and began intervening in the market.<\/p>\n

That effort has cost an estimated CNY900 billion so far.<\/p>\n

On July 20,\u00a0Caijing magazine suggested that CSF was setting up to scale back the market interventions which many believed had kept the SHCOMP from collapsing altogether.\u00a0<\/strong>Here’s what happened next:<\/p>\n

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That suggestion caused futures to slide in China and in short order, the “rumor” was denied by CSRC.\u00a0Now, the reporter who penned that story has been arrested<\/strong>\u00a0for, as\u00a0Bloomberg put it earlier today<\/a>, “spreading fake stock and futures trading information.”<\/p>\n