shareswizard of 10years and still going strong

I AM DAMN FRUSTRATED AT IDIOTS TELLING ME THAT SHANGHAI PLUNGE TODAY BECAUSE OF RATE HIKES...THESE IDIOTS NEVER LOOK AT CHARTS AND ANYHOW SHOOT OFF...oh please!!!!!!!
I SHALL RECAP SOME OUTDATED NEWS TO REFRESH YOUR MEMORY HOW USELESS NEWS CAN BE....

Chinese stock markets sink despite rate cut
Rowan Callick, China correspondent
From: The Australian
September 17, 2008 12:00AM
EVEN China's first interest rate cut in six years could not stop the country's share markets sinking yesterday in response to the despair on Wall Street.
The Shanghai stock exchange's benchmark index fell by 4.47 per cent, crashing past the 2000 points barrier to close at 1986.64.
The market is thus worth less than a third of its value at its peak in mid-October last year, when it reached 6395.76. This marks the most rapid decline of any major market, even in such an internationally gloomy year.
The People's Bank of China, the central bank, had signalled on Monday evening -- the day was a public holiday in the Chinese world, for the Mid Autumn Festival -- a new priority: stimulating growth.
Fighting inflation -- which reached 8.7 per cent in February -- and "overheating" had been its previous focus, as it increased interest rates six times in 2007.
But the PBOC cut its benchmark interest rate by 27 basis points on Monday to help stimulate the economy, to 7.2 per cent, and also cut financial institutions' reserve ratio requirement by one percentage point to 16.5 per cent from September 25 -- although this will not apply to the "pillar banks" that dominate the market.
It had increased the reserve ratio five times earlier this year, as part of the monetary strategy to rein in what the Government had viewed as excessive investment.
Now, however, overall economic growth is slowing more than Beijing would like -- from 11.9 per cent in 2007 to 10.6 per cent in the first quarter of 2008, to 10.1 per cent in the second quarter.
And inflation now appears more contained -- the consumer price index rose by just 4.9 per cent in August.
Goldman Sachs commented on Monday night's monetary moves: "We see these adjustments as a positive step, given the unprecedented uncertainties in the international financial markets and rising downside risks in the domestic economy, in particular the real estate sector."
But Jing Ulrich, JPMorgan's chairman, China Equities, said: "Monday's asymmetric rate cuts -- the one-year lending rate was cut, while deposit rates were left unchanged -- sparked investor concern about the impact of narrower interest margins on the earnings outlook for Chinese banks."
Shi Lei, a Bank of China analyst in Beijing, told Reuters that the central bank shift was "mainly a signal for the stock market", with the 2000 points barrier "a key level where authorities feel they need to come in and help the market".
If that was indeed the prime motive, it didn't work. And there is no guarantee that the bottom has been reached yet.
The Hang Seng Index in Hong Kong also plunged yesterday, to its lowest level in nearly two years. But China's authorities retain control over the exchange rate, and the yuan is expected to be kept stable this week, in part to deter speculation that might arise from the changes in the bank settings.
Worryingly for Australia, commodities are also suffering as China catches the depressed international mood. Copper and aluminium each fell in Shanghai yesterday by their full 4 per cent daily limit.
Energy companies, important economic partners for Australia, have been suffering -- though falls in commodity prices should help them, especially since they suffer from government-imposed price caps on the other end.
The share price in Hong Kong of Chinese giant Shenhua Energy fell 12 per cent yesterday. And Huaneng Group, China's biggest power generating corporation, said yesterday that it was losing money despite two government-sanctioned tariff rises, by a total of 10 per cent, in the past two months. This is principally due to price rises for coal, which fuels about 80 per cent of China's electricity.

WHO SAYS THE STOCK MARKET MUST GO UP BECAUSE OF RATE CUTS?
WHO SAYS THE STOCK MARKET MUST GO DOWN BECAUSE OF RATE RISES?


Stocks up despite interest rate rise
Thursday,August 23,2007 Posted: 22:18 BJT(18 GMT)
From:Chinaview Article type:Reproduced
BEIJING, Aug. 23 -- The Shanghai stock market edged up yesterday despite the unexpected announcement of an interest rate hike by the central bank late on Tuesday. The People's Bank of China raised the one-year benchmark deposit rate by 27 basis points to 3.6 percent and the one-year lending rate by 18 basis points to 7.02 percent, effective from yesterday. Analysts said the rate rise will not have a negative impact on the stock market, which has plentiful liquidity. China still faces the problem of liquidity inflows, backed by the expectation of currency appreciation, which was further strengthened by the narrowing of the interest rate between the United States and China. The Shanghai Composite Index climbed 0.5 percent to close at 4980.07, yet another new high, with 555 out of 901 stocks closing higher. Turnover on the Shanghai bourse amounted to 162.2 billion yuan. The smaller Shenzhen Composite Index jumped by 1.68 percent to close at 1398.37, led by large-cap stocks. Meanwhile, the CSI 300, the underlying indicator of the upcoming index futures, surged 1.59 percent to break through the key barrier of 5000 points yesterday, closing at 5051.69. The CSI 300 medical index has surged the most, 193.49 percent, since the beginning of this year, followed by the CSI 300 raw materials index's jump of 185.06 percent, according to China Securities Index Co Ltd. Financial and real estate stocks contributed 28.93 percent of the CSI 300 index. "Plentiful liquidity is continuing to drive up the stock market. A small adjustment to the interest rate may not be able to solve the problem of excessive investment and liquidity in China's economy," an Orient Securities report said. "The negative interest rate may continue to lure investors to move money to the stock market. Blue-chip stocks, which were largely held by mutual funds, are expected to go up," said the report. Lin Wenjun, chief economist at Fullgoal Fund Management Co Ltd, said: "We are still positive about the A-share market, and the interest rate rise won't change our investment portfolio." Wu Feng, an analyst at TX Investment Consulting Co Ltd, said yesterday that the stock market may be volatile at 5000 points, a mark set by many institutional investors as a target point. "It is obvious that the stock market is rising at a slower pace and will be more volatile when it approaches 5000 points," he said. Stocks in the alcohol and travel sectors performed well. Wuliangye Group, China's largest liquor producer, jumped 9.76 percent to close at 35.98 yuan. Beijing Capital Co Ltd jumped to the daily limit to close at 15.17 yuan while Shenzhen Century Plaza also surged 10 percent

i think that idiots must have forgotten past news.today, so many people tell me that shanghai plunge today BECAUSE of interest rates rise..
WHAT A JOKE!!!
HAVE NOT IDIOTS LEARNT ENOUGH FROM THE STOCK MARKET NEVER TO TRUST NEWS?