1 reply to this topic

[paulstan]

History suggests that China's Leadership is not likely to take a "hands off" approach to their newly formed capital markets . . . in fact, history suggests that they're more likely going to aggressively manage the market to avoid larger dislocations that would come from continued speculation. Will be interesting to see how this plays out. They've expressed their intentions fairly clearly, and if the speculation isn't reigned in through natural processes I suspect they'll become more emphatic shortly. I also feel that a downturn in China will mark the top for worldwide markets. We'll see.

[redfoliage2]

History suggests that China's Leadership is not likely to take a "hands off" approach to their newly formed capital markets . . . in fact, history suggests that they're more likely going to aggressively manage the market to avoid larger dislocations that would come from continued speculation.

Will be interesting to see how this plays out. They've expressed their intentions fairly clearly, and if the speculation isn't reigned in through natural processes I suspect they'll become more emphatic shortly.

I also feel that a downturn in China will mark the top for worldwide markets. We'll see.

You bet. I heard the government set a quota for the fund, not too big, initial fund amounts only 16 B with lots restrictions on the investment and it's unlikely they will buy stocks from open market.

Edited by redfoliage2, 22 May 2007 - 12:20 PM.