Red Ponzi Wobbling----Shanghai Index Plunges To 4-Year Low

Two days after we reported that concerns about pledged shares, in which major investors put up stock as collateral for personal loans - a disastrous practice when stock prices are dropping, emerged as a key pressure point for China's market, overnight Bloomberg reported that "rising fears of widespread margin calls fueled a 3 percent tumble in the Shanghai Composite Index, which sank to a nearly four-year low as more than 13 stocks fell for each that rose."

The concentrated selloff, sent the Shanghai Composite down 2.9%, closing at session lows of 2,486, the lowest level since November 2014, as China's plunge-protecting "National Team" was nowhere to be seen.

 

https://www.zerohedge.com/news/2018-10-18/china-crashes-flood-margin-calls-sparks-liquidity-crisis-panic-selling

 

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