Big Mouse

Chinese Economy May Be Heading into an Iceberg

"Indeed, at Trading Economics, we think the unprecedented rebound in the Chinese stock market has been to some extent engineered by the Chinese government and not propelled by a positive change in real economic fundamentals."

---- I would like to explain the Chinese stock market in another way. Neither government manipulations nor a positive economy signal. The industry funds give up their factories due to weak demand from overseas. These funds went to coal mines in 2H08 and then transferred from coal mines to the stock market in 1H09. Now they move from the stock market to porperties. The index boom has nothing to do with economy. The Chinese stock market is merely a way for capital to make money in the weak time - just like the oil price in developed countries.
---- An analyst in Shanghai