Last week was rather eventful for the thai market with it being hit with the double whammy of the ICAO (Thailand’s airlines) and MERS, then again if you had closed your eyes and reopened them today it looks like nothing has really changed. What can we look forward to this week? Greece greece greece.

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  1. I think the real elephant in the room is not Greece but really what will the impact be from a Chinese bubble popping…There is a high level of margin trading being used as well as ordinary people losing their shirts…

    Any contagion effect could be devastating to regional markets including Thailand.

    • Margin trading – great on the way up, horrible on the way down.
      I doubt the China equity market will have an impact on the region, its 80% retail dominated there thus you won’t see a mass exodus of foreign fund flow.

      • I’m not concerned on the foreign fund flow side, my concern stems from the fact that Thailand is heavily reliant on Chinese consumption and tourism.

        I wonder how much collateral has been sought on these 200-300% margin accounts, I see the banks are going to be taking a bath at some point..

        • The # of chinese tourists visiting Thailand is still very small considering the potential – I wouldn’t be surprised to see a 3-5fold increase in the coming years from today’s numbers.

          Banks are generally ok, they are still quite strict w/ collateral requirements, the issue is of course the black market lending.

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