Oct 30th, 2008
China’s stock markets keep bouncing around, sometimes in synch with the rest of the world and sometimes out of synch. Yesterday it was out of synch as it lost 2.9%, largely because a number of corporations announced lower-than-expected earnings growth. A useful chart I filched from yesterday’s Wall Street Journal Asia shows the slow-down: . [...]
The third down week in a row had the SSE Composite finishing with a 1.1% loss Thursday and a 1.9% loss Friday, to close at 1840. Checking the historical data provided by Bloomberg indicates that we have to go back nearly two years, to November 2006, right around the beginning of the ferocious Chinese bull [...]
Oct 22nd, 2008
After several rallies in the past month I said it was just a question of time before the Chinese stock markets tested their recent lows, and today the SSE Composite closed at 1896. It’s become so easy to be skeptical after every surge that I don’t want to fall into the trap of just assuming that [...]
Oct 19th, 2008
After the globally coordinated rescue package was announced Monday the Chinese stock markets boomed in sympathy with the rest of the world, with the SSE Composite closing up 3.6% for the day. Tuesday the SSE Composite shot up 3.5% within minutes of opening, but the party was already over in China. Over the rest of [...]
Oct 15th, 2008
After the globally coordinated rescue package was announced Monday the Chinese stock markets boomed in sympathy with the rest of the world, with the SSE Composite closing up 3.6% for the day. Tuesday the SSE Composite shot up 3.5% within minutes of opening, but the party was already over in China. Over the rest of [...]
Oct 9th, 2008
Yesterday’s 27 bp rate cut and 50 bp reduction in minimum reserve requirements by the PBoC had the expected impact on the stock market: None. The SSE Composite declined 0.8% today to close at 2075. Another day like yesterday and we’ll be testing 2000 once again. Of course it is unrealistic to expect that [...]
The market continued its losing streak with the SSE Composite dropping 64 points to close at 2093, down 3.0% for the day, with financial institutions and property developers once again leading the way. During the trading day my student Shang Ning sent me the following (slightly edited) email: The PBoC issued 1-year bills, at [...]
Oct 1st, 2008
The holiday week continues to limit information and policy-making, and of course the Chinese stock markets are closed, but there were nonetheless two interesting articles, one in the Chinese press and one from abroad, worth noting. The first was a very long article in today’s Xinhua called “The rise of the yuan – where now [...]