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Chinese stocks will keep rising, with the benchmark Shanghai Composite Index poised to add 15%...

Chinese stocks will keep rising, with the benchmark Shanghai Composite Index poised to add 15% by year-end as slowing inflation gives the government room to loosen monetary policy and allows for bank lending to pick up, according to Beijing Gao Hua Securities Co, Goldman Sachs' China partner.
Comments (3)
  • Michael Clark
    , contributor
    Comments (8655) | Send Message
     
    "Keep rising"? Chinese stocks have been falling since March on the Hang Seng Index. The Shanghai Index has been falling since 2008.

     

    If the Chinese expect higher stock prices they have to do more than lower interest rates. They have to sink the US Dollar. How can they do that, with the Euro fracturing and fragmenting.

     

    More debt is NOT what the Chinese need. They need MORE MARKETS. That is, they need the EU to go back to 2004. They need the US to back to 1996. Not going to happen.

     

    China and India are both heading for a hard landing. Japan is heading for a abond crisis like Euro-land. Britain and America are also heading for a bond crisis, although not right away, since money in Europe is fleeing to US and British bonds.
    31 May 2012, 01:31 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2886) | Send Message
     
    GS meant the A-shares in Shanghai, and it's the best performing world index this year (except Pakistan).

     

    But GS was also bullish about oil, copper, aluminum at beginning of this year.
    31 May 2012, 01:34 AM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    The Chinese market and most other EM shares lack any transparency. Insider trading and all sorts of scams seem to be the norm rather than the exception. Of course, the US market as well as Europe has the same problem but not to the same extent. Rather than invest in Chinese stocks, you might as well donate your money to management. It would be more or less the same thing but at least with a donation you know what you are doing.
    31 May 2012, 05:04 AM Reply Like
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