China's Stock Mania, page-2

Jongo, I'm of the belief that the ssec will burst at one point aggravated by the PBOC reducing interest rates further. The problem is the immaturity within the equity sector and the massive leverage contained in the index now by margin lending and soon by derivatives of a more complex nature.

Hong Kong's market will be effected in the same way.

When this unwinds the Chinese government will be faced with massive loses by individuals and all types of financial entities and money lent through the banking system that ends up in the equity bubble will be lost.

Naturally the investment banks will have moved the hundreds of billions (try $trillions) they've made out of China's reach.

The resultant crash could easily involve some of China's biggest banks resulting in a liquidity crisis within the world's second largest economy.............does this sound familiar?

Despite recent attempts by the Chinese government the Chinese equity markets are inflating in a euphoric fantasy bubble. Chinese investors will soon go through the pain I and thousands of other Australian investors went through in 2008/9.

But then at the same time our markets will suffer another demise; more pain is coming but I have learnt my lesson. This time I'll be ready.

Shall we say 'the ultimate payoff'.