{"id":31557,"date":"2018-02-24T09:12:17","date_gmt":"2018-02-24T14:12:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31557"},"modified":"2018-02-24T09:12:17","modified_gmt":"2018-02-24T14:12:17","slug":"weekly-commentary-anbang-and-chinas-mortgage-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31557","title":{"rendered":"Weekly Commentary: Anbang and China&#8217;s Mortgage Bubble"},"content":{"rendered":"<h3 class=\"post-title entry-title\"><a href=\"http:\/\/creditbubblebulletin.blogspot.ca\/2018\/02\/weekly-commentary-anbang-and-chinas.html\">Weekly Commentary: Anbang and China&#8217;s Mortgage Bubble<\/a><\/h3>\n<div id=\"post-body-7881373922741818919\" class=\"post-body entry-content\">The Shanghai Composite traded as high as 3,587 intraday on Monday, January 29th, a more than two-year high. This followed the S&amp;P500\u2019s all-time closing high (2,873) on the previous Friday. On February 9th, the Shanghai Composite traded as low as 3,063, a 14.6% decline from trading highs just nine sessions earlier. In U.S. trading on February 9th, the S&amp;P500 posted an intraday low of 2,533, a 10.7% drop from January 26th highs. Based on Friday\u2019s closing prices, the Shanghai Composite had recovered 43% of recent declines and the S&amp;P500 70%.<\/p>\n<p>Global equities markets demonstrated notably strong correlations during the recent selloff. Few markets, however, tracked U.S. trading closer than Chinese shares. From the Bubble analysis perspective, tight market correlations provide confirmation of the global Bubble thesis. It\u2019s also not surprising that Chinese markets were keenly sensitive to the abrupt drop in U.S. stocks. The U.S. and China are dual linchpins to increasingly vulnerable global Bubble Dynamics. Moreover, intensifying fragilities in Chinese Credit \u2013 and finance more generally \u2013 ensure China is keenly sensitive to any indication of a faltering U.S. Bubble.<\/p>\n<p>February 21 \u2013 Bloomberg: \u201cChina stopped updating its homegrown version of the VIX Index, taking another step to discourage speculation in equity-linked options after authorities tightened trading restrictions last week. State-run China Securities Index Co. didn\u2019t publish a value for the SSE 50 ETF Volatility Index on its website Thursday. An employee who answered CSI\u2019s inquiry line said the company stopped updating the measure to work on an upgrade. The move was designed to curb activity in the options market, said people familiar with the matter\u2026 It\u2019s unclear when the index will resume.\u201d<\/p>\n<p>Derivatives rule the world. Of course, Chinese authorities had few issues with booming options trading when markets were posting gains. Here in the U.S., regulators will supposedly now keep a more watchful eye on VIX-related products.<\/p><\/div>\n<div>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Anbang and China&#8217;s Mortgage Bubble The Shanghai Composite traded as high as 3,587 intraday on Monday, January 29th, a more than two-year high. This followed the S&amp;P500\u2019s all-time closing high (2,873) on the previous Friday. On February 9th, the Shanghai Composite traded as low as 3,063, a 14.6% decline from trading highs just [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16740,1799,130,7756,4899,18919,6537,1141,1140],"class_list":["post-31557","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble-dynamics","tag-bubbles","tag-china","tag-credit-bubble-bulletin","tag-economic-bubble","tag-mortgage-bubble","tag-shanghai-composite","tag-vix","tag-volatility-index"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31557"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31557\/revisions"}],"predecessor-version":[{"id":31558,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31557\/revisions\/31558"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}