when you have a public stock market and and a government controlled planned economy
it is always going to end up badly
last month China banned major stocks holders from selling shares in companies for 6 months
and how China has instructed the media how to report on stock market
but the fact is Chinese government can not hold up the market forever
well it could but then eventually the Chinese government would be the only money left in the chinese stock market.
I remember how scared people were of these guys. They can't even do QE right. Never mind actual economic development. It's fooking amateur hour over there.
we looking at a downturn in our market? Great run from 2009, but seems like the Dow has leveled off @18,000 for the past 6-8 months, and the past week or so has been dreadful. Do you experts think the problems in the Chinese market will adversely affect us?
China's stock market is basically where it was on 1/1/15. Looks like there was a 30% spike in early April. I thought that this was because of margin buying. Is that right? If so it has very little to do with China and communism, and very much to do with the kind of speculation you see in non-mature and under-regulated markets all the time.
I had an interesting chat with the Director of Global Marketing
for a large American manufacturer yesterday (she also happens to be my sister) and we talked about China. Her company deals with China both as a supplier and as a sales market.
She said that China is going through transitional pains again. That they are trying to become not just great processors and engineers, but now great innovators. They are demanding access to trade secrets from foreign firms seeking to do business there (not sure why just continuing to steal them isn't good enough!?). The growth we have seen in China's economy has of course been inflated, but they still have more real growth than most anywhere else.
China is no longer the low cost producer and they aren't known for any particular industry. They have great vertical integration though.
My sister tells the story of a colleague of hers, born and educated in China, who was attending an MBA course at a US university. When discussing a business case study, the class divided organically into three groups supporting different plans of actions. When the class ended, the Chinese student approached the professor and asked which was the right solution. She was stunned and confused when he explained there was no "right" answer. The Chinese are very good at navigating effectively from A to B. They struggle when B is unknown, and are still far from the creative and innovative culture needed to redefine the questions.
the Chinese gummint is in the process of slowing down dissent in any
it is always going to end up badly
last month China banned major stocks holders from selling shares in companies for 6 months
and how China has instructed the media how to report on stock market
but the fact is Chinese government can not hold up the market forever
well it could but then eventually the Chinese government would be the only money left in the chinese stock market.
She said that China is going through transitional pains again. That they are trying to become not just great processors and engineers, but now great innovators. They are demanding access to trade secrets from foreign firms seeking to do business there (not sure why just continuing to steal them isn't good enough!?). The growth we have seen in China's economy has of course been inflated, but they still have more real growth than most anywhere else.
China is no longer the low cost producer and they aren't known for any particular industry. They have great vertical integration though.
My sister tells the story of a colleague of hers, born and educated in China, who was attending an MBA course at a US university. When discussing a business case study, the class divided organically into three groups supporting different plans of actions. When the class ended, the Chinese student approached the professor and asked which was the right solution. She was stunned and confused when he explained there was no "right" answer. The Chinese are very good at navigating effectively from A to B. They struggle when B is unknown, and are still far from the creative and innovative culture needed to redefine the questions.
A huge % of Chinese stocks are held by individuals, as opposed to funds and so forth, more than here.
The rising middle class, which, (guesswork ON)
the 'committee' has decided to slow the growth of by crashing the market.
(guesswork OFF)
since they are harder to control than the fewer uber-rich (the short sellers, one can surmise) and many peasants.