China sneezes, world gets flu

Discussion in 'China' started by 1.44, Aug 18, 2009.

  1. 1.44

    1.44 Member of The Month SEPTEMBER 2009 Senior Member

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    China sneezes, world gets flu

    China sneezed and the world caught the selloff panic flu. Weakening investment sentiment in the world’s fastest growing economy --- China --- that saw its stock market rise by around 90 per cent over the past one year led to the fall in the markets worldwide.
    And as the Shanghai Composite fell 5.8 per cent, the world’s second fastest growing economy, India, saw its benchmark index the Bombay Stock Exchange Sensex fall by 626 points or 4.1 per cent on Monday.

    The crash that began with China and turned Asia into a sea of red, saw the red ink splash across Europe (it fell by 1.1-2.7 per cent), the Americas (1.9-2.9 per cent) and the US (down 2.3 per cent a the time of writing).

    “Apprehension of a credit bubble in China on account of a credit growth of $1 trillion in the past six months and a stock
    market bubble has led to the fall in Shanghai Composite by 5.8 per cent,” said Amitabh Chakraborty, president equity, Religare Enterprises.

    Losses announced by two major Chinese companies in the metals and insurance sectors raised concerns and added to the fall. “This led to a major concern on the macroeconomic front on whether the growth shown by China over the past three to four months is really sustainable,” said Divyesh Shah, CEO, Indiabulls Securities.

    All major Asian markets fell sharply, but Japan was a typical case in sentimental contradiction. While its real economy rose (GDP growth of 0.9 per cent in the second quarter), indicating a potential full-fledged recovery, its market fell 3.1 per cent.

    Experts also suggested that weak US retail data also contributed to the fall. Oil has fallen by over $5 per barrel over the past two days and was trading at $65.5 per barrel on Monday

    China sneezes, world gets flu- Hindustan Times
     
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  3. 1.44

    1.44 Member of The Month SEPTEMBER 2009 Senior Member

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    China drags Sensex, world markets down

    It was a panic Monday.
    As the Chinese market fell 5.8 per cent, following concerns about the sustainability of its growth rate, all other markets across the world were also awash in a sea of red.

    India was no exception. The Bombay Stock Exchange Sensex, fell by 627 points or 4.1 per cent to close at 14,785.

    The wider Nifty fell 193 points or 4.2 per cent. It is the biggest fall since the last Budget was presented on July 6.
    Realty, metals and auto stocks fell steepest, by 7.6 per cent, 6.2 per cent and 4.8 per cent respectively.

    In India the global nosedive could well have been only the starting point.

    “There are also rising concerns on inflation, drought and a rise in fiscal deficit, which the market may have been reacting to,” said Aseem Dhruv, CEO, HDFC Securities.

    China drags Sensex, world markets down- Hindustan Times
     
  4. sky

    sky Regular Member

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    If the fundementals are good its only a blip.our sensex will reach new highs in the short term as the pe is attractive.for china i think they have some big problems ahead,stimulas money being spent on shares is only artificially keeping shares at levels that have no relation to the value of the stock.
     
  5. oliveryty

    oliveryty Guest

    thanks for complement, but the chinese people don't think so

    US sowing discords

    europeans' smoke screen

    and as they want help from china, they present their honey word on, once they get relieved they would be stern and find fault with china, don't they?
     
  6. oliveryty

    oliveryty Guest

    the americans on one hand persuade china for holding more US debts, on the other hand they print more banknotes to dilute the value of US dollars, shameless

    china should sold out all US debts at once, the quicker the better!
     
  7. Officer of Engineers

    Officer of Engineers Defence Professionals Defence Professionals

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    Hey dumbass! They quicker you sell your US debt, the quicker your people lose jobs ... or did that escape you?
     
  8. no smoking

    no smoking Senior Member Senior Member

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    You are right, we can't sell the US bond too quick. But we are reducing the investment in USA slowly and smoothly since the safty of US debt has worried everyone.
     

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