well, it's interesting; it's hot, it's in vogue. I think India is worth looking at.
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China - Main index touching 8 year lows, is this the moment to enter?
- Thread starter CN2000
- Start date
Before you cheer to much for China, better check this out-
http://news.ft.com/cms/s/28cfe55a-f4a7-11d9-9dd1-00000e2511c8.html
http://news.ft.com/cms/s/28cfe55a-f4a7-11d9-9dd1-00000e2511c8.html
Quote from tomcole:
Before you cheer to much for China, better check this out-
http://news.ft.com/cms/s/28cfe55a-f4a7-11d9-9dd1-00000e2511c8.html
Name one country China has ever attacked in the past
Even when China was at the peak of its power, they never sought to conquer other countries
I've talked to Chinese people and they admit that their military is crap, so I'm not sure what the US is worried about
Yes they have nuclear weapons but so do a host of other countries, including the US.
Why would China, which is developing so rapidly risk a nuclear war? That would be sheer stupidity on their part.
North Korea on the other hand, which has nothing to lose, would be more likely to use them.
China has an emerging debt/economy problem which is tremendous in scope.
Although what they say about a nuke exchange may be for domestic consumption, it has to scare the crap out of any military planner (not to mention the rest of us), that a top Chinese military official speaks casually of a nuke exchange. Do you think thats his way of kicking back and having a few beers with the guys?
I also havent heard him be chastised, fired or retired. So, for now, I agree with the prevous poster, investing in China is like trying to catch falling knives - not a worthwhile game.
Although what they say about a nuke exchange may be for domestic consumption, it has to scare the crap out of any military planner (not to mention the rest of us), that a top Chinese military official speaks casually of a nuke exchange. Do you think thats his way of kicking back and having a few beers with the guys?
I also havent heard him be chastised, fired or retired. So, for now, I agree with the prevous poster, investing in China is like trying to catch falling knives - not a worthwhile game.
Quote from Ripley:
If anyone in their right mind read that article, I don't think they would even want to waste their time reading what "more to come".
Stay away from corrupted communist states.
Exactly.
For all of you who have not read it, I reccomend reading "Mr. China", and then let me know if you are willing to put up any money behind any Chinese company. Sure some of them may be great, but I certainly am in no rush to dish out cash as an "investment", pleanty of great investment vehicles exist here in the US, no need to put up with shady communist business practices in an attempt to gain any sort of return.
Probably NOT good time to buy, but no way to know for sure.
I saw an interview on Bloomberg a few months ago.... he was some Chinese former government guy and described the problem.
Years ago, companies got into the index because they were appointed by local governing officials rather than earning their way in by economic merit.
He said many of the companies never had any business being in the index and lacked econ value.
The poor performance of the index is reflecting those crappy companies. Nobody could know when all of the bad stuff would be fully factored in,
I saw an interview on Bloomberg a few months ago.... he was some Chinese former government guy and described the problem.
Years ago, companies got into the index because they were appointed by local governing officials rather than earning their way in by economic merit.
He said many of the companies never had any business being in the index and lacked econ value.
The poor performance of the index is reflecting those crappy companies. Nobody could know when all of the bad stuff would be fully factored in,
Quote from wan2BTrader:
This is so fanny, do you have facts?
This is not at all recent, but I can try to find the article again. Saw it before from a friend who is Chinese-American, he actually went to China (again) 3 months ago.
It was a form of social security in a country trying to turn capitalist but with an old semi communist government. Hey think about Bush's social security plan, not too different.
Excellent discussion, btw.
The thing is ... most companies listed on the Shanghai stock exchange are still 60-95% owned by the government, and the govn't has launched an effort to sell down its stakes in these corrupt, egregiously overvalued companies.
The Shanghai stock market will, at some point, need to find a way to purge these companies altogethor and then find a way to attract the NYSE / HKSE-listed companies to then list in Shanghai.
Until these changes occur, Shanghai isn't worth a second thought.
The Shanghai stock market will, at some point, need to find a way to purge these companies altogethor and then find a way to attract the NYSE / HKSE-listed companies to then list in Shanghai.
Until these changes occur, Shanghai isn't worth a second thought.