Readers may know that in Bleak House, Charles Dickens symbolised the opacity of law with the London fog (more likely smog) then endemic. The famous second paragraph goes:
Fog everywhere. Fog up the river, where it flows among green aits and meadows; fog down the river, where it rolls defiled among the tiers of shipping and the waterside pollutions of a great (and dirty) city. Fog on the Essex marshes, fog on the Kentish heights. Fog creeping into the cabooses of collier-brigs; fog lying out on the yards, and hovering in the rigging of great ships; fog drooping on the gunwales of barges and small boats. Fog in the eyes and throats of ancient Greenwich pensioners, wheezing by the firesides of their wards; fog in the stem and bowl of the afternoon pipe of the wrathful skipper, down in his close cabin; fog cruelly pinching the toes and fingers of his shivering little ’prentice boy on deck. Chance people on the bridges peeping over the parapets into a nether sky of fog, with fog all round them, as if they were up in a balloon, and hanging in the misty clouds.
The correlation with Chinese law, governance and business is obvious. A system which cannot enforce air quality fit for human habitation is not one in which you have confidence. And so the stock market declines.
Today a full fifteen stocks declined. SAIC Motor (-3.11%), China Railway Construction (-2.77%) and China State Construction (-2.52%) had the worst of it. China Telecom had the largest rise, up 2.09%. The Shanghai Composite Index declined 33.25 points (-1.58%) to 2,073.10. Alarm bells will be ringing as it nears the 2000 barrier (putting it back to 2006 levels). We will likely see share-buyback operations to shore up prices. But even this shows the not-so-invisible hand of the state.
|Name||Price||Change||Mkt cap||52wk high||52wk low||EPS||P/E|
|China Construction Bank||4.08||-0.06 (-1.45%)||1.02B||5.19||3.8||CN¥0.85||4.82|
|Agricultural Bank||2.43||-0.04 (-1.62%)||789,250M||3.28||2.38||CN¥0.50||4.84|
|Bank of China||2.63||-0.03 (-1.13%)||734,161M||3.26||2.48||CN¥0.53||4.95|
|China Mobile||80.95*||+0.40 (0.50%)||1.63B||91.8||74.9||HK$8.17||9.91|
|Noble Group||1.04||0.00 (0.48%)||6,925M||1.27||0.785||SGD0.04||28.84|
|China State Construction||3.1||-0.08 (-2.52%)||93,000M||4.18||2.9||CN¥0.62||5.03|
|China Railway Construction||4.57||-0.13 (-2.77%)||56,383M||6.49||3.95||CN¥0.84||5.43|
|China Railway Group||2.61||-0.06 (-2.25%)||55,593M||3.41||2.3||CN¥0.44||5.95|
|SAIC Motor||13.38||-0.43 (-3.11%)||147,522M||19||11.83||CN¥2.05||6.52|
|China Life Insurance||14.8||-0.15 (-1.00%)||418,318M||22.7||12.88||CN¥0.97||15.31|
|Dongfeng Motor||12.66*||+0.20 (1.61%)||109,080M||13.28||9.48||HK$1.37||9.22|
|China Shenhua||15.57||-0.26 (-1.64%)||309,681M||25.7||15.41||CN¥2.25||6.92|
|Ping An Insurance||39.58||-0.52 (-1.30%)||313,321M||53.27||31.69||CN¥3.45||11.48|
|China Telecom||3.90*||+0.08 (2.09%)||315,636M||4.46||3.48||HK$0.26||15.14|
|China Communications Construction||3.98||-0.08 (-1.97%)||64,375M||5.79||3.8||CN¥0.81||4.92|
|Bank of Communications||3.85||-0.06 (-1.53%)||285,911M||5.68||3.65||CN¥0.84||4.57|