Menu
Sister Sites

  • The Chinese Stock Market and the Country's Economic Growth are Diverging

    From economywatch.com

    As 2014 fades in the rear-view mirror, the Chinese economy exhibits two sharply conflicting trends: while economic growth continues to decelerate, the stock market is rising steadily. The capital market boom — which started mid-year and accelerated following the People’s Bank of China’s (PBoC) rate cuts in late November — might be supported by expanding liquidity (monetary policy easing) and sentiment (expectations of reform) but certainly not fundamentals (corporate profitability). One major question in 2015 is when and how will China’s current bull market end. In retrospect, there were three main economic ... (full story)

China will burn in the near term....just wait and see.....
markets are manipulated by capital, what does it do with real economy. US economy was shit but DOW kept on rallying.
It may be just a lull, it may be the exit signal for those holding Chinese stocks.

Here is an aspect of the one-child policy coming home to roost; "The working age population is now falling by three million a year". A difficult situation because the Chinese had no option but to do something about their burgeoning population. Probably they can turn that around with little effort, but there will be at least a 10-year lag before the working age population decline is halted.
  •  Guest
  • | IP X.XX.33.97
Join FF
  • Story Stats
  • Posted: Feb 15, 2015 10:18pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 3  /  Views: 1,595