Saturday, April 19, 2008

Chinese Stock Market Plunge

The Chinese stock market is about to pass the 50% off milestone. Between this and risking global food prices, it could be an interesting year leading up to the Olympics. The WSJ earlier noted that as much as 50% of Chinese corporate profits were profits speculating in their own stock market.

Don't be foolish to ignore this trend just because it is 'over there.' China buys billions of US airliners, computers (or parts), software (despite huge piracy), and other US goods. In a repressive state, the economy either grows or there is civil unrest. Oh, I expect the Olympics to be a rallying point for Sino patriotism, but how long afterwards will the 'glow' last?


Got Popcorn?

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