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China Raises Rates - Impact on Shangahi Market


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#1 optionking

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Posted 18 May 2007 - 02:32 PM

China rasied interest rates after the Shanghai Market closed. What impact can this have on the Shanghai market on Monday? Maybe a pullback coming in Chinese markets...

#2 relax

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Posted 18 May 2007 - 02:44 PM

everybody is waiting for the china crash - when it comes - well so what

First time it came in february - we were chocked

Then the nect tim it droppe more than 4 per cent and the market really did not care

The same will happen next time

They not only raised rates but also the band which the Yuan trades in against the dollar

This will hurt chinese exporters but is good for the rest of the world!

China rasied interest rates after the Shanghai Market closed. What impact can this have on the Shanghai market on Monday? Maybe a pullback coming in Chinese markets...



#3 winterscourtesy

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Posted 18 May 2007 - 02:52 PM

Can anyone speculate what impact this might have on the dollar?

#4 Mtrader

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Posted 18 May 2007 - 02:53 PM

my guess is 1 US=6.25 Yuan. 20% correction.
You are on your own. This is for demonstration only.
JV

#5 TechSkeptic

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Posted 18 May 2007 - 03:40 PM

China's stock market is getting overheated from speculation, and needs something like this to cool off. Long-term it's healthy for everybody, including China.

#6 nimblebear

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Posted 18 May 2007 - 04:06 PM

China's stock market is getting overheated from speculation, and needs something like this to cool off. Long-term it's healthy for everybody, including China.


The should have been cranking up rates long ago like the FED did here. Raise 'em high and steady. They won't raise them fast enough though.
OTIS.

#7 spielchekr

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Posted 19 May 2007 - 11:06 AM

Should get more interesting once China establishes this state-controlled fund in the near future.


"China's new fund "will be huge, and it could move markets, blowing up well-thought-out trades with the touch of a bureaucrat's button.""


http://internethub.b...cash-hoard.html

Edited by spielchekr, 19 May 2007 - 11:08 AM.


#8 JAP

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Posted 19 May 2007 - 11:57 AM

everybody is waiting for the china crash - when it comes - well so what

First time it came in february - we were chocked

Then the nect tim it droppe more than 4 per cent and the market really did not care

The same will happen next time


So what? :blink:

There was a rumor they would raise rates a few weeks ago and the US futures market took a big drop in a few minutes. It recovered when traders realized it was only a rumor. Funny how no one ever mentioned it, especially CNBC.

If China raises interest rates, it will have a major impact on the US market.

The perma-bulls in this forum crack me up.

#9 relax

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Posted 19 May 2007 - 02:09 PM

Yuan will strengthen, which will increase Chinese imports and be good for the rest of the world

everybody is waiting for the china crash - when it comes - well so what

First time it came in february - we were chocked

Then the nect tim it droppe more than 4 per cent and the market really did not care

The same will happen next time


So what? :blink:

There was a rumor they would raise rates a few weeks ago and the US futures market took a big drop in a few minutes. It recovered when traders realized it was only a rumor. Funny how no one ever mentioned it, especially CNBC.

If China raises interest rates, it will have a major impact on the US market.

The perma-bulls in this forum crack me up.



#10 redfoliage2

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Posted 19 May 2007 - 10:38 PM

[quote name='relax_dk' date='May 19 2007, 03:09 PM' post='289147']
Yuan will strengthen, which will increase Chinese imports and be good for the rest of the world

[quote name='JAP' post='289139' date='May 19 2007, 12:57 PM']
You will see prices in the Walmart and many other places going higher here in the US if Chinese Yuan keeps going up. So the inflation.