China has been taking some measurements recently to tigthen/safeguard its country from asset bubble, rising inflation.
Today, we see another tightening on the bank lending, a move to slow down credit surging.
As expected, the SSE (shanghai stock exchange) and HSI (hangseng stock exchange) plunged.
Come back to our local market, Bursa dropped -5 pts at mid-day. The theme play remains intact with some SCORE counters and steel counters surging. (HUAAN surged 5%, look like the syndicates are not losing momentum) :=)
Bursa volume sustains at healthy region of 1-2 billions. US futures are healthy.
Bottom line: Stocks that unclepicks hold are fundamentally sound. If price is not attractive enough, why need to sell?
China is the one influencing the world in future starting 2010
ReplyDeleteNo doubt, China is gaining its feet into the world. But, to be the one influencing the world *ahem* still going to take quite a long time.
ReplyDeleteLook at the Europe and US stock markets. They have little impact, and decoupled from China today.
China economy might be strong, but there is still rooms to improve before it can influence the rest of the world.