Chinese Stocks Plunge At The Open; Shanghai Tumbles 5.7% Below 3,500 “Hard Line” Support

(Before It's News)

But… but… pension funds are “allowed” to buy stocks.

Judging by the first few minutes of trading in the first thing to open this evening on the mainland, the CSI 300 Index Futures which immediately tumbled by 4% to 3340, China’s attempt to deflect attention from the fact that it did not do a 50-100 bps RRR cut is not doing too well.

Some other indicative levels which are in line with the CSI:

• Shanghai Composite to open -3.8%, some 130 points below the 3,500 “hard line” support level below which it is a nothing but air back to 2000
• Shenzhen down 4.3%
• ChiNext down 5.1%

That said, we expect the National Team to not give up without a big fight, and forcefully step in any minute and do everything in its power to prevent the resultant plunge in the Shanghai Composite which is set to open shortly, or else SHCOMP 2000 beckons, and with it lots and lots of social unrest.

* * *

Update: Shanghai Composite now down -5.7%

And the 3,500 support is now gone.

• Crude Snaps Below $40 : Gartman Stopped Out Of Oil Long
• Markets Fall in the Middle East
• Mounting Tension: North and South Korea ‘on the brink of war’
• “Savage Speed” – A Look Inside Market Crash Statistics
• The Pope’s Top Climate Change Advisor Does Not Believe In God – But He Does Appear To Believe In ‘Gaia’
• SWAT police raid wrong house in Worcester
• Angry Chinese Investors Capture Head Of Metals Exchange In Predawn Hotel Raid
• 08.23 Stock Market Sandstorm Continues in World Markets – Saudi Arabia down 7%
• Thousands protests in Brazil, calling for president’s impeachment – economy hits worst slump in 25 years
• Futures Stumble Out Of The Gate, Slide 0.6% On Lack Of Chinese RRR Cut: What Happens Next?