Chinese market meltdown - are we screwed?
- Thread starter nottyboi
- Start date
It doesn't look good. Everything was up for the longest time. Its about to crash. Save your money. Sell your rental condos get your profit now.
Looking good at this point in time
Shanghai SE Composite Index China +166.16 +4.74% 3,673.35 1:36am ET
Hang Seng Hong Kong......................... +991.81 +4.22% 24,508.37 1:36am ET
Shanghai SE Composite Index China +190.33 +5.43% 3,697.52 1:40am ET
Hang Seng Hong Kong..................... +1,039.05 +4.42% 24,555.61 1:40am ET
Shanghai SE Composite Index China +166.16 +4.74% 3,673.35 1:36am ET
Hang Seng Hong Kong......................... +991.81 +4.22% 24,508.37 1:36am ET
Shanghai SE Composite Index China +190.33 +5.43% 3,697.52 1:40am ET
Hang Seng Hong Kong..................... +1,039.05 +4.42% 24,555.61 1:40am ET
It's been in the making for a long time. Much of China's economic clout has been its ability to produce at a very low cost. Unfortunately the prosperity they gained produced an ever growing middle class who are less and less willing to work for peanuts (or rice balls if you prefer). Only way for China to continue as is through repression, something hard to do with an ever more educated and worldly population.
Indeed!
With a growing middle class unwilling to work for fish heads and rice, it won't be long for our 'usual suspects' to be making comparisons like this and be longing for the good old days .....
With a growing middle class unwilling to work for fish heads and rice, it won't be long for our 'usual suspects' to be making comparisons like this and be longing for the good old days .....
The PRC is quickly or has already achieved economic maturity status. The next step is for them to create/expand a high value added economy. Apparently, the PRC has 20 educational institutions that are the equivalent of MIT.
Markets go down, and they go up. Nothing new here. It's an opportunity to buy low amidst the panic. There's going to be a rebound.
There has been exuberance the last year. Property prices were going lower because speculators were putting their money in the stock market rather than the real estate market. I expect that the real- estate market is going to rebound.
Chinese markets are nevertheless more orderly than in the West. You cannot buy and sell the same day. You have to wait for the next day. So that cuts speculation a lot.
Although the Chinese market has pulled back significantly in the past few weeks, it's interesting to note that it is still up about 86% for the year. Like usual, it's the ones who piled onto the bandwagon at the end who are losing.
Also read some commentary that indicates that investments in the stock market only comprise about 15% of household wealth in China. So, although losing some of the profits might suck, I'm not sure it's really that bad to have the market slow down from its unsustainable pace.
