SOME SHCOMP FOR YOUR GRANDKIDS ?

Just read that JPM recommend a cut loss on their Long SHCOMP trade.

“Our note (Shanghai, Trading Buy) from
24th July flagged 1980 as an important
level to defend and also a stop loss for
trading long positions – with the index
now trading at 1976, this long trade has
been stopped out. While a weekly close
at or above 1980 may restore a long
trade – for now, this trade has not
worked.”

The 2 immediate responses from (probably recalcitrant longs) were that AT THIS LEVEL, MIGHT AS WELL LEAVE FOR THE GRANDKIDS. For Dialastrategist’s case, she thinks great grandkids which are hypothetically running in the 1st derivative case of, offspring first.

Since I have a decent chance of a 2nd derivative from my 1st issue, I am musing between SHCOMP and this new term life policy I have just been shown that would cost me some US13k a year for a 30 year period and a death benefit of USD 1.5 million provided I die in this period or otherwise, a full refund of my premiums.

Whilst I am affronted that my premiums cost about twice that of my Eligible Indian friend indicating a skewed pricing mechanism of the part of their actuary model suggesting that Indian males will outlive/outlast Chinese women (he is not much younger than myself), my initial thoughts were that it is a pretty cheap death option to pay for legacy planning. (And I also take slight offense that my banker keeps pushing all these death products onto me as if she expects that I will not live too long.)

Back to SHCOMP which has risen slightly today after the first PBOC liquidity injection into the system since Feb, after yesterday’s big jump in SHIBOR. It is up 0.75% at 1990 as I type.

TECHNICALS

The 100 day moving average just crossed under the 200 day, signalling a bearish market for 2823 HK. A break below 8, would be catastrophic because we would not see a support till 6.70.

HEADLINES

There is not a single positive headline on China with Barclays seeing GDP slow to 3% growth.

http://www.bloomberg.com/news/2013-07-28/china-3-growth-risk-seen-by-barclays-signals-likonomics-anxiety.html?utm_medium=referral&utm_source=t.co

BBC reports a global glut from the Chinese downturn.

http://www.bbc.co.uk/news/business-23055087?utm

And the conclusion is that Asia would be hit hardest because of Chinese imports from the region.

http://www.businessinsider.com/what-will-happen-if-china-lands-hard-2013-7

The US and Europe are taking steps with the largest FTA which the Bertelsmann Foundation estimates as adding 13% GDP per capita for the US and 5% per capita for the EU.

As for Singapore, our fates are inextricably tied.

July 30 (Bloomberg) — Study of transactions above S$50
million and since global financial crisis showed Chinese capital
in Singapore real estate was nearly S$5 billion, Business Times
reported, citing broker CBRE Group Inc.
• Chinese funds represented 69% of foreign capital invested in Singapore property market in first half of 2013 for transactions above S$50 million, newspaper says

69% of foreign capital ?!!!!

Yes, so how about some SHCOMP for the grandkids instead ?