David Oliver_

Everyone Is Working Hard to Increase Global Trade Imbalances

I am always by how expensive many products are here in China. Not just imported products but many everyday products including foodstuffs (unless you go to the fruit & vege markets) also seem to cost more than they do back home. Import duties are one factor, another is VAT tax which can be up to 17%.

Lowering VAT would help stimulate consumption, however import duties for consumer products will probably not be lowered in any meaningful way. Even with a huge trade surplus I doubt if the government could bear to see people buying more "foreign" goods.

New Rules for Chinese Stock Market Investors

I think this was simply a not-too-subtle attempt by Francorp to plug his company.

No Rest for the Chinese Stock Market

How do corporations react (to profits being squeezed)? Maybe by adding melamine to their infant milk powder products ...

Anecdotal Evidence of Risks in China's Banking System

So one scenario is that senior officials at large banks are approving what look like legitimate loans at the going market rate, but that this money is then funneled into the informal banking sector where it can earn a much higher return. A nice business for those who get a cut of the interest rate differential until things go pear shaped ...

China: Inflation or Stagnation?

A small point but price hikes of RMB0.5-1.5 at McDonalds would translate into rises of 7-21 American cents.

Whatever the official inflation figures show the fact is that life is getting more expensive in China, especially for foreigners as the price of imported food products has jumped 50% or more in some cases. Whether that is inflationary pressure, increased import duties or simple price gouging is hard to tell.

Is China's Stock Market Nearing a Bottom?

I would have thought there was potential for the market to go down a lot further. As you yourself have pointed out numerous times inflation is going to be a major issue in the coming year and the government is also trying to bring GDP growth back to a more sustainable level. Raising interest rates and tightening credit are logical ways to do this and would be detrimental to both the stock market and real estate.