The notice — published on the central bank website (www.pbc.gov.cn) — said the Shanghai Gold Exchange and the Shanghai Futures Exchange are enough to meet domestic investor demand for spot gold and futures trading.Sounds like the characteristics of a bubble. Chinese inflation expectations are very high and people started using gold as a replacement for property investment. The stock market recently hit new post-2008 lows and trades less than 30% above the 2008 low. To put that in perspective, this level equates to 850 on the S&P 500.Existing exchanges or "platforms" were told to stop offering new services.The PBOC cited lax management, irregular activities and evidence of illegality which were causing risks to emerge, as the reasons for taking the decision.
FTAV’s further reading
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Easter eggs‚ spy cats; quant credit, synched brains
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