The fear of an economic recession is already priced into the Shanghai index. After breaching a previous low to hit its lowest point in 2010, the Shanghai index shows it may be pricing in far too much fear and not enough future upside. Fundamentals are Improving Despite concerns over a property market that has surged … Read moreHurry – Chinese Dip Won't Last Forever
While real estate prices and a surging stock market steal headlines, a vicious bubble in China is coming out of the woodwork. It isn’t energy, and real estate is semi-debatable, but this bubble is certain: China’s money stocks are exploding. A Mass of Cash While governments in the West were busy spending themselves into oblivion, … Read moreThere's Only One Chinese Bubble: Currency Reserves
A credit fueled expansion of the Chinese economy is sending its commercial and infrastructural businesses into overdrive. A combined effort of more than 13.6 trillion yuan (4 trillion in stimulus and 9.6 trillion in bank lending) has sent developers back to work building up the country’s infrastructure. Ambitious Projects At the pinnacle of any government … Read moreIs a Booming Chinese Infrastructure Good for Your Portfolio?
Following the release of $585 billion into infrastructure investments, China’s economy has bounced back quicker and with more force than any other economy in the world. However, with so much capital flooding the infrastructure sector and trickling into many others, inflation remains a consistent threat. The Origin of Inflation Much of the record high inflation … Read moreWhat Post-Stimulus Chinese Inflation Means for Your Investments
As real estate prices soar in the Chinese mainland, analysts around the world are yet again calling Chinese stocks a bubble. However, sky-high real estate prices aren’t always indicative of a bubble, and the fundamentals driving China’s economy higher have never been stronger. China vs. the United States The real estate bubble in the U.S. … Read moreWhy China Won't Bubble Over
As world dignitaries converged for a United Nations summit to address keynote issues such as global warming, one nation, China, is fully set to explode in economic growth should measures in the developing world find their way to law. The Green Debate A cap and trade measure is the type of law most likely to … Read moreWhy China Has Everything to Gain in Climate Change Legislation
No investor can deny the obvious benefits of foreign stocks in 2009. As the dollar crumbled to test multi-year lows and the financial crisis wrecked American banks, international markets experienced nothing but a tidal wave of investment, as money poured out of developed nations and into economically viable emerging markets. With the international markets sailing … Read moreHave You Missed the Asian Investment Boat?
ChinaTrust Financial Holding Co., the owner of the largest credit card issuer in China, is looking at potential takeover possibilities to further consolidate what has been an excellent growth business in China. The Initial Steps The board voted to approve doubling the capital behind the bank to make it better suited to withstand large financial … Read moreCashing in on the Chinese Credit Card Boom
In a change from China’s recent international commodity takeovers, a Chinese firm is looking to buy into a Taiwanese telecom company. China Mobile will buy as much as much as 12% ownership in Far EasTone Telecommunications for $528 million. Consolidation and further interest in China’s own telecommunications business is sending domestic firms overseas in a … Read moreChinese Firms Pause Commodity Takeovers to Buy Phones
Investors still expect perfect marks from Chinese investments. Investors were disappointed with 6.1% growth in the first quarter for China; however, this year, it looks as though 6% may be better than the 10% growth rates of one year ago. Inflation is Gone Previously, China’s GDP reports would come alongside a hefty change in the … Read moreChina's GDP: When Good Numbers Go Bad