Overnight the Chinese government cracked down on short-selling, unveiling rules that will make it harder for speculators to profit from hourly price changes. CNBC spoke with two analysts about whether the move is a good one for the Chinese markets long term.
Peter Boockvar, chief market analyst at The Lindsey Group, said that Chinese officials have thrown price discovery out the window and have thus “broken the market.”
“Unfortunately after creating the bubble and responding to the downturn, this is a mess they have gotten themselves into,” he said in an interview with CNBC’s “Power Lunch” on Tuesday. “Their main intention here, I think, is to see the margin debt levels fall to a level they are comfortable with, then they’ll eventually walk away, but they’ve destroyed the market.”
Recommended Content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.