Lots of pretty graphs to prove the point, and if it is a correction, this sure is a sharp one. When will China engage in direct QE?

Article source: http://www.zerohedge.com/news/2015-06-22/chinese-crash-continues-after-pboc-cracks-down-brokerage-liquidity

Following after the break.

Just when you thought it was safe to buy the 12% collapse (the biggest since Lehman) in Chinese stocks, they re-plunge another 3-4% with no dip-buyers evident. The drivers are twofold: first, China PMI beat expectations modestly (uh oh no more QDII, QE, PSL, etc.); and second - and much more critically - The PBOC Operations Office has called for stricter regulation of brokerage liquidity (implicitly clamping down on the seemingly infinite expansion of margin lending required to fuel the boom). CHINEXT has entered a bear market (down 21.5%) and the rest of the Chinese complex is down 3-5% today (down 15-20% from the highs).

Following the worst week since Lehman (and a holiday last night), the margin calls are coming...

As Bloomberg reports,

China should better regulate liquidity situation of securities firms, whose debt increases “fast,” Jiang Zaiyong, vice head of PBOC Operations Office, writes in a commentary in Caijing Magazine.

 

China should also strictly restrict entry of wealth-management funds in the capital market, the commentary on  preventing liquidity risks in asset management products says

 

Furthermore, China Brokerages Must Meet Liquidity Ratios by End-June

Some context for this drop...Chinese stocks are now down over the past month and unchanged for 7 weeks...

And all of this after China hides the new retail account opening data and halts various members of the 500%-club. So there has been 3 weeks with no data since the open accounts spiked to 4.4 million in one week...

And we warned investors that the IPO canary in the coalmine had croaked... The Bloomberg China IPO Index is now down 24.5% from its highs.

To be brief - it's over!!

• China IPO Index -24.5%
• CHINEXT -21.5%
• Shanghai -17.6%
• CSI-300 -17.3%
• Shenzhen -17.2%

Without assistance (levitation) from the same PBOC that just clamped down on liquidity, the China bubble has burst.

It was just a matter of time really.

so as a guy with us stock should i be worried or happy?

It's just stock. The financial markets are not a valid way to measure economic progress anyway. With stocks going down I might be tempted to invest in some Chinese companies.

the US stockmarket is more rigged than las vegas...

something like this cant happen in the US, why? because there arent much persons that trade US stock, the most trading is done by computers, and if those go into panic mode, the market gets halted and the trades vanish. 

was the crash that happened 8 years ago just a dream?

that wasnt a stock crash like that in china.  the crash of 07/08 was different, the bubble exploded so rapidly because the government was to stupid and some banks to greedy. they wanted to make cash like they did wit the bear stearns collaps, but well it didnt worked so well.

the US market isnt more safe, the risks are just different.    but if you are holding good blue chips you shouldnt have to worry to much(and its not to hard to get some informations about blue chips)

financially (well at least investment wise, i budget my daily expenses well) and pretty uninformed and dumb to what i'm doing.  i have a lot of money in my 401k and another big chunck in betterment and a really big chuck doing nothing in my bank.  what i like about betterment is it does everything for me.  what i hate about betterment is i really don't know if i should trust it.

i've done really well finacially so far but i really feel like i've forest gump'ed it.  i've been on the very lucky end of a lot of things really.

Ultimately trust comes into it with the economy and investments.  Over all, even with big down turns, planning and investing has shown itself over decades to be a sounf strategy for millions of people.  Getting that reliable 6-9% return annually really adds up over a 30 year period.

you can improve yourself a lot if you guess right when the turning point is.just follow the trend till they are 1 month behind the trend, then sell at the highst highpoint. thats the way to optimise losses.
you dont need the highest sales, that doesnt matters over time