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The Epic Gong Show In China Soldiers On - Z CHIN chart

Well, that was certainly a well-timed, centrally-planned, market bounce by the Chinese! If you:

  1. Aren’t allowed to sell and/or
  2. Could go to jail for doing so, that’ll work

The Shanghai Composite Index bounced +5.8%, its biggest daily gain in six years. (It only needs another +37% to get back to 1-month breakeven.)

Meanwhile, the Veep of Public Security in China (Meng Qifeng) actually called the people who sold at 59X earnings “hostile short sellers.” Huh? We have a feeling the guys without high-school educations really aren’t that sophisticated.

My take is simple: China was a pump and dump. Period.

In other news, China's economic data? It still stinks. Producer prices -4.6% y/y in June.

On a final note, hats off to Allstate CEO Tom WIlson who appeared on Maria Bartiromo’s show with me this morning. Here’s what he had to say about Beijing:

"The problem with China is nobody believes the numbers. I think sometimes they just make it up."


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