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View Full Version : Chinese share prices hit new high despite high CPI figure


Rubber Duck
16th August 2007, 06:25 AM
BEIJING, Aug. 13 (Xinhua) -- Chinese share prices continued to rise on Monday, with the benchmark Shanghai Composite Index reaching a record high of 4,839.95 points during the morning session before closing at 4,820.06 points, 70.69 points higher than the previous close.

Power supply firms, banks and petrochemical stocks led the advance. Huaneng International, China's largest power supply company, jumped 5.62 percent to 13.73 yuan per share.

The Industrial and Commercial Bank of China (ICBC) rose 6.13 percent to 7.10 yuan per share. As the largest bank in China, the ICBC's market value has surpassed CitiBank and Microsoft, becoming the world's third largest listed company. The Bank of China soared8.61 percent to 6.31 yuan per share....

http://news.xinhuanet.com/english/2007-08/13/content_6523770.htm

Crisis? What Crisis :p

Incidentally that make ICBC, the World's largest bank by capitalisation. The World's two most valuable companies are Exxon Mobil, and General Electric Co.

touchring
16th August 2007, 06:58 AM
China does not allow it's citizens to invest outside the country easily, so there's too much cash flushed in the system, becoming a bubble.

The system is still very much closed up and restricted for investments.

It is difficult to setup a business, difficult to bring money out, difficult to get licenses, difficult to get a loan. Even foreigners are restricted to one property, and i heard that in Beijing, you must work in Beijing to buy a property.

Rubber Duck
16th August 2007, 07:03 AM
China does not allow it's citizens to invest outside the country easily, so there's too much cash flushed in the system, becoming a bubble.

The system is still very much closed up and restricted for investments.

It is difficult to setup a business, difficult to bring money out, difficult to get licenses, difficult to get a loan. Even foreigners are restricted to one property, and i heard that in Beijing, you must work in Beijing to buy a property.

Yes, but as many of these restrictions are lifted prices can only go higher. Can you imagine what it would be like if there were a free for all for Western Speculators?

touchring
16th August 2007, 07:25 AM
Yes, but as many of these restrictions are lifted prices can only go higher. Can you imagine what it would be like if there were a free for all for Western Speculators?


There will be chaos. Western, including Australian funds still primarily go to America as the recent news has revealed. The West is financing America's real estate market.

The decoupling concept is now proven to be a fallacy. Asia finances America's consumption, Europe finances America's real estate, and America in turn creates jobs for Europe and Asia.

Rubber Duck
16th August 2007, 07:27 AM
There will be chaos.

No, there is a slow and gradual liberalisation of the markets.

That is what is know as responsible government. Probably a bit of a novel concept in some quarters.