Portable Alpha

China: Markets Surge, But Little Has Changed

Russia's low external debts might somehow to do with its 98 default, at least a writedown in its cumulative. I believe tho, UAE serves an example for Russia's policy makers on their economic policy initiatives and directions. Similarly, in addition to diversifying economy, China is in need of industry upgrade as well.

It is, too soon to be blissful on Chinese equity market, both MS and DB indicate that corporate profitability, domestic demand and economic slowdown as well as property market slump would lead further plunge. DB's China Overheating Indicators from Jan 07 to the present have shown warning signs.

1'400 for Shanghai SE isn't really beyond the reach, and nothing's impossible, not many countries can sustain double digit growth for that long. Beijing should be more vigilant and discretionary, they need positivity and confidence, as much as pragmatism and prudence.