Cramer: 'In This Great Bear Market That Is China, The Government Will Be Able To Stabilize The Rate Of Decline'

Loading...
Loading...

After suffering significant declines on Monday, the Shanghai Composite Index again opened drastically lower today. However, by the end of closing the market recovered and ended the day down 1.68 percent.


CNBC's Jim Cramer was recently seen discussing how the Chinese government might have played a role in this recovery. Here is what he said.


Chinese Government: Natural Buyer


"I am watching where the government is playing this and believe me the government is the natural buyer in this situation," Cramer began. "Government let the market come in really bad , they [were] no one there on Monday. And then they let the market drop about 4 percent and [futures looking] down and then they just jammed it up plus 1 percent, then they let the sellers come in and [they] stabilize it down 1 percent."


'We Are China'


"It's kind of a victory for the bulls because it didn't finish down 4 (percent). So, [they have taken the thing] down 10 percent, typical correction and now they have been trying to stabilize it. And it's brilliant because you catch the shorts looking the wrong way, you get the longs thinking that maybe I can get out of such situations."


He continued, "I continue to believe that in this great bear market that is China, the government will be able to stabilize the rate of decline. And that was victory for the bulls, which is why the market rallied. 'We are China', it's like 'We are Penn State', 'We are China', so, let's not confuse this."


Government Is Putting Trading Skills To Work


"But the Chinese government is a very good trading organization, they've always been [in through] history China's government has been good traders, [whether it be for iron ore, what they are paying for copper]. So, they are putting their skills to work -- tactical skills, firepower to work -- in the Chinese market," Cramer concluded.

Loading...
Loading...
Posted In: CNBCMedia
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...