- Feb 18, 2006
The reason is chinese investors have nowhere else to spend their money...no casinos, can't invest overseas, can't invest in HK (without a QDII)..so where do you think all the money goes?Is it just me or has China closed at record levels today?
Thats one mighty strong bubble if you ask me, mighty mighty strong!
Maybe, but it does make you realise the importance of herd behaviour, the US and Aussir herds were jumping off the cliff, well US more than Aussie, but the Chinese herd said "To Infinity and Beyond!" ..........The reason is chinese investors have nowhere else to spend their money...no casinos, can't invest overseas, can't invest in HK (without a QDII)..so where do you think all the money goes?
Shanghai and Shenzen SS is one big casino for the rich and poor. The chinese govt is already implementing policies to slow the economy down, but to no avail atm.
Investing in shares is a relatively new experience for the Chinese public.Maybe, but it does make you realise the importance of herd behaviour, the US and Aussir herds were jumping off the cliff, well US more than Aussie, but the Chinese herd said "To Infinity and Beyond!" ..........
I though it interesting to ponder
That's drawing a pretty long bow. People are people and a bubble is a bubble.Maybe just maybe the Chinese have got it right .......after all they have a far longer history of trading and commerce than OZ, the US and even Europe.
Sure many of you have tried to do a deal with a Chinaman at some time of your life.
Now that capitalism is becoming available to more and more in mainland China it appears that they are embracing it and it is obvious that Greenspans analogy that "when China sneezes the world catches cold" is more applicable than saying that "if US sneezes" etc etc.
The money may not be evenly shared in China but there is a lot of old money and a lot of very canny Chinamen.
Same goes for India.......
I agree with you Awesomandy. But as always the question is timing? I assume that the olympics in 2008 will have a big impact on their economy. That gives them, in my opinion, at least another year of reasonably positive outcomes.Myself being a Chinese with a western education, I wouldn't touch the Chinese market right now - not for short-medium term trading and/or investing anyway. Not unless somebody can point out to me that stocks with p/e of 60+ is sustainable, or unless it can be proven that the economy can continue to grow at such pace even when virtually all of the city workers spend their working hours trading on the market instead of doing productive work.
From what I can see, one day, doubt will set in, and the money will run out. Then, a lot of people will get hurt - very badly hurt.
I agree.... Just look at their peak there on lighter volume, and they didn't blink when the rest of the world took a jump down last week. To me, it's just a matter of days before they correct in some way. Not just based on any external factors, but their own market itself.It called also be the final "blowoff" happening now, in which case when it does terminate that could trigger another phase of downward pressure worldwide like it possibly did in February.
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