CHINA INVESTIGATING AUTOMATED HIGH FREQUENCY TRADING AS STOCKS SLUMP

stock photoIf you've been watching China's stock market, you'll be interested in this article shared by Mr. S.D.:

China cracks down on automated trading

While the article is suggestively short on words and information, I strongly suspect there's a lot lurking between, and behind, the lines. Consider these statements:

In its latest bid to restore calm to the domestic stock markets, Chinese authorities confirmed Friday that they'd started investigating automated trading practices and their role in the continued sliding of many shares.

China's two main stock markets have lost about 30 percent of their value since mid-June, with authorities bending over backwards to prevent a further sell-off.

The China Securities Regulatory Commission (CSRC) said it was looking into institutions and individuals and their role in program or automated trading, which it said had amplified big fluctuations on the stock market.

The practice of computerized automated trading typically involves transactions being carried out at high speed on a large number of stocks.

To my mind - and herewith today's high octane speculation - this is tantamount to saying that while China's markets were "correcting", that correction itself was being over-driven by computerized trading, and that additionally, the Chinese government may suspect that some, perhaps even a large, part of this activity may have been very deliberate. Clearly the Chinese suspect something, for as the article also states later, certain specific trading accounts have been suspended, and this can only mean that the Chinese government suspects that their markets have been subject to deliberate manipulation. The real question, should this prove to be the case, is: Deliberately manipulated by whom? and why? The obvious suspect would be "the USA," but I think this might be simplistic.

One may look at the Chinese market slump in two ways, first as a "correction" which has been amplified by the presence of high frequency computer trading...

...or, to use the expressive analytical term of former HUD Assistant Secretary Catherine Austin Fitts, one may view it as an example of "harvesting," along the classic lines of pump and dump, in this case, a pump and dump of China's equity markets, driven, aided, and abetted by certain HFT traders, who in all likelihood are simply acting as the agents or middlemen for hidden players.

Given the fact that the BRICSA nations are driving a parallel clearing and investment banking structure, and given that China has established its own Asia Infrastructure Development Bank, my speculation also includes the possibility that the Chinese know about this hidden financial system and harvesting mechanism, and hence, their current reticence to be more forthcoming about their investigations. This means, should my model be true, that we can predict that in the future, the BRICSA nations might start hinting openly about the existence of that hidden system.

See you on the flip side...

13 thoughts on “CHINA INVESTIGATING AUTOMATED HIGH FREQUENCY TRADING AS STOCKS SLUMP”

  1. @”all they do is send in some young fire fighters”

    really?

    “A 217-strong specialist nuclear, bacteriological and chemical warfare military unit arrived to help with the clean-up operation, Xinhua said”

    dont you even read news report? before calling the opinions of the others as “biased view”?

    @”There is what you know, what you don’t know, and the huge territory of what you don’t know that you don’t know.”

    exactly, how do you or Mr.Armstrongs know what i dont know or what i do know before i even said anything in specific regarding the recent warehouse explosion except i merely said i share a similar suspicion with another reader,
    that there is enough reason for me to think the way i think, to follow certain “logic and structure”?

    and such suspicsion comes partly from the “interesting/curious thing” that can be observed from those photographc scenes from the blast site.

    but i havent said what they are.

    speaking of what one does know and what one doesnt know,

    does Mr.Armstrong know that the Chinese super-computer Tianhe-1A is located “less than a mile northwest of the blast site”, that it has been manually shut down due to the recent blast.

    http://blogs.wsj.com/chinarealtime/2015/08/14/ok-supercomputer-chinas-tianhe-1a-shut-down-after-tianjin-blast/

    this blog talked about “high frequency trading”,
    now, does “high frequency trading” involve “computers”?
    did the recent Tianjin warehouse explosion just “shut down” the “mother of all computers” in China?

    can one say “YAAC (Yet Another Amazing Coincidence)”?

    and speaking of what one does know and what one doesnt know, does Mr.Armstrong know why the Chinese named their supercomputer “Tianhe”, besides its an ancient term for “the milky way”?
    why they are building “super computers” and developing space based quantum communication, and joining their Beidou system with the Russian Glonass?
    Simply to compete with America for the title of “who has the fastest” and “who is the first”?

    like who’s “the first” to land man on the moon?
    and forget about all the “conspiracy theorise” talking about the “secret space program”, and the implication for the public, that Mr.Snowden merely scratch the surface, the tip of the iceberg for them?

    does Mr.Armstrongs know that there are well over 330 German companies registered in this “Economic-Technological Development Area” in Tianjin’s Binhai district where the blast just rocked?

    its a major international port designated for the recently promoted “silk-road” which eventually connects Germany,
    the district is also the home to the first Airbus Assembly line constructed outside of Europe,
    and back in late 2012, German chancellor Angela Merkel brought with her entire German Cabinet to meet with her Chinese counterpart Premier Wen jiabao in Tianjin, where she celebrated the final Assembly of the 100th Airbus plane by its Tianjin subsidiary,

    afterwhich, the Germany’s central bank announced the following year, in January 2013, “it will repatriate gold reserves held at the New York Fed and the Banque de France in order to have “the ability to exchange gold for foreign”.

    that the same day Binhai district was rocked by the warehouse explosion, on 12 August, the British Secretary of State for Foreign and Commonwealth Affairs was “coincidentally” visiting China and inspecting the Airbus Assembly line in Tianjin, as the Airbus is a joint venture involving the British, the French and the Germans, and many of those “torched” cars near the blast site happens to belong to Renault, a French car-maker, they lost about 1,500 vehicles due to the incident.

    its more than one “coincidence”, and its not just the “coincidence of timing” between the stocks trading performance and the blast in Tianjin.

    but i would start “the consipiracy” with the “interesting/curious” thing i noticed on those photos from the blast site before talking about those “coincidences”.

  2. Will China retaliate, once they find out who the guilty party is, you betcha they will. People don’t realize that the Chinese have been experts at the money game for a very long time, they are not stupid. So whoever is the perpetrator of the dirty deed (cough US), expect “incoming” in a very short period.

  3. The parasites three piece suit criminals are hard at work turning Earth into Zardos World. Cutthroat gambling has replace Capitalism as the means of making a living for our stone out elites. But then these clowns what to believe that a flat earth is the universe with them as the GODS and bottomless GREED their mantra.

  4. Let’s take a look at YAAC (Yet Another Amazing Coincidence). Within a short period of time, the Chinese Stock Market suffered a ~30% loss and Chinese warehouses go kaboom!! IMHO these were not accidents. Could they be? Sure. However, FedGov.Inc does not play nice with others. Especially, when those others have decided not support the War w/o End Amen US Foreign / Economic play book. I stand by my MOTO (Master of the Obvious) prediction that the BRICS 105 member nation alliance could see a serious increase in “Acts of gOD” and or other misfortunes via the NE Navy / Teslarian tech weapons systems.

    1. The video I watched of those warehouses blowing up made me think of the recent post here about the Syrian & Yemeni explosions. There are clearly 2 explosions, one smaller and the following one huge. I was not prepared for how blinding the light was from the larger explosion and the extent of it’s aura. Didn’t see any of those white sparkly dots around the edges though…

      Does anyone else think that we should be watching for more dead bankers w/Chinese connections to show up?

      1. I guess I’m not surprised the collective is looking for connections between the market correction/investigation and the explosion due to the timing. But remember correlation is not causality.

        I quote cycle analyst Martin Armstrong regarding the Chinese Market correction and the devaluation of the Yuan.

        “Confusion hits the markets as stocks, currencies, and commodities fall sharply across the region as investors fear a stalling Chinese economy and possible currency war despite Beijing’s assurances. We warned that this devaluation was NOT A FLUKE, and far too many people just misrepresent what is truly going on within the world economy so it comes as no surprise they missed this one.

        The central bank of China has come out and stated publicly that they use capital flow analysis. They are far more professional than any other central bank. They took the market right up to the technical resistance. There are just too many people contriving scenarios and theories with a biased view to support what they would like to see. This neither is a currency war nor is it some wild scheme to support gold. The world economy is contracting, if not imploding, because politicians are hunting money for taxes and confiscating assets because governments are going broke.”

        http://www.armstrongeconomics.com/archives/35890

        He is not saying that there is no “manipulation” of the markets anymore than he says there is no manipulation of our markets. They are manipulated and always have been. If we look at manipulation as simply adding liquidity to the market, it ends up not changing the destination of where the market is going to go. And people who have good technical analysis skills especially cycle analysis had this week ear marked for an event like this. In other words, the market did exactly what it was supposed to.

        As far as the Tianjin explosion, I’m watching carefully simply because I have family and will be speaking with them again in the morning. Suffice to say, people are in a state of shock and mourning and concerned about the on going safety issue. I suspect I have a better chance of finding out of if anything suspicious is going on from the people than Chinese media. Make no mistake, whether it was terrorism or simply human error, Chinese government is going to make somebody pay for this. All the execs are probably locked up in a cell already awaiting further investigation if I can interpret Chinese media reports that they are “controlled”

        1. @”There are just too many people contriving scenarios and theories with a biased view to support what they would like to see.”

          the reverse can be said true as well.

          @”I suspect I have a better chance of finding out of if anything suspicious is going on from the people than Chinese media. Make no mistake, whether it was terrorism or simply human error, Chinese government is going to make somebody pay for this. All the execs are probably locked up in a cell already awaiting further investigation if I can interpret Chinese media reports that they are “controlled””

          and i happen to be “the people”

          they are aerial photos of blast site from drones, the only thing being “controlled” here are the drones, there are no “narratives” on them except simple photographic scenes/evidences from the blast site.

          they dont represent anything from the Chinese government or the Chinese media more than they represent anything from what im going to say based on the “curious things” i notice from them, they are simply what they are: “photographic scenes of the blast site”, inability to see someting as simple as that constitute a form of “biased view” indeed.

          but i am glad the word “terrorism” is mentioned, because that immediately reminded people of “911”, except it was not “terrorism”, but ofcourse thats just “biased view” i guess.

          1. Like I said, I’m not surprised the correlation of timing between the two events has gone viral in the alternative/conspiracy blogosphere and Veterans Today is reporting that the Rothschilds Nuked China as retaliation. This is why I read very little of the alternative media with the exception of Joseph and few others. Good God. A world power nuked by the banksters and all they don’t know about it and all they do is send in some young fire fighters.

            Armstrongs commentary speaks for itself, and it comes with a long track record of accuracy of calling the market issues before they happen. His comments aren’t mutually exclusive from Joseph’s because the average person who doesn’t know advanced TA or cycle work probably got caught in the pump and dump, just as so many gold bugs did as well.

            There is what you know, what you don’t know, and the huge territory of what you don’t know that you don’t know.

          2. You certainly don’t need a nuke when you have a “hazardous materials” warehouse/storage/transit area in close proximity to a large LNG terminal.

            I read a much more plausible rumour that was reported to be circulating in Tianjin itself: that the hazardous materials area was transiting a large arms shipment, which began the conflagration, and which doomed the LNG terminal. Now the conpiracy element is that these arms were going to the Middle East, and someone didn’t want them to get there.

            Ultimately, the disaster would have been much less severe if the LNG teminal had been more isolated, and certainly nowhere near warehouses stocked with armaments.

          3. basta, the media-reported ‘chemicals’ and the LNG terminal association does not jibe with the large crater (now a ‘lake’) formed in the explosion. Both the chemicals and the LNG would blow sideways and upwards, leaving little force to create a crater. Whatever it was, it had a large cratering capability…

            On the ‘correlation of timing’, one controversial site author has linked the blast not with Chinese Stock Market issues but with a distraction-event to remove media presence from the Hillary ‘server’ debacle. Interesting…

  5. HFT should be banned, period. Everywhere. China should go for it and clean house on this racket.

    It is among the very worst of the slimey vulture-capital schemes that have been concocted by the soiopathic “capitalist” Wall Street money men to rig the markets and turn them into gambling dens. Of course it distorts trading and can move shares and markets at whim;

    Golden Sacks said as much when it went after a former programmer who was developing HFT algos for the competition, saying literally that such algos were dangerous and could be used to manipulate markets “if they got into the wrong hands.” Of course when the Vampire Squid does it, it isn’t market manipulation, oh no! It’s simply SOP. (The heart of American exceptionalism and hypocrisy can be traced to this evil entity, which is the soul of be Beast.)

    And while China’s at it, it should ban naked shorting, and most derivatives. But then it would become a terrorist state and need to be taken down like all the others that don’t play by the Rothschild Central Banking “rules.”

  6. Call it extrastatecraft by an international cartel of privateers that practice economic warfare an all publics fronts for their own private gains. In other words, economic warfare against the public at large, for the benefit of a miniscule few.

    Welcome to Bankster occupied territory.

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