Another terrible day on the stock market saw the SSE Composite,
led kicking and screaming by energy and financial companies, trade
more or less straight down by 3.2% to close the day at 2203.
Away from the weather there is plenty of bad news for those
looking for it.
China's passenger car sales fell 10 percent in August from a
year earlier, preliminary data showed, due to the impact of the
Olympics and weakening consumer confidence, Lehman Brothers said in
a research report on Thursday.
The report said auto sales in China, the world's second-largest car market, were
expected to remain lacklustre for the rest of 2008 and possibly into early 2009.
On Friday the Chinese stock markets had their second up day in a
row (a rare occurrence this year), with the SSE Composite trading
What seemed to drive the market down today was a confluence of
events suggesting that government fears of an economic slowdown may
I was in Shanghai for the past two days and so
wasn’t able to write anything on my blog, although it doesn’t seem
like a whole lot has happened recently to add to our understanding
of the Chinese economy.
The weak rally was driven by higher-than-expected profits among
consumer-related companies, although I wonder how much of that
increase was caused by a one-off jump in Olympic-related
I am not allowed to be too specif
Those who believe the fight against inflation has only just
started will argue that a relaxation of food prices is not
unexpected given the huge and clearly distorted run-up earlier in
Xinhua, by the way, had a very different take on Zhu’s
The Olympics are finally over, and with a spectacular ending
that reportedly had Jimmy Page performing “Whole Lotta Love”.
Whatever the fate of the Olympics, the up-and-down struggling in
the stock markets that characterized the Olympic period is
certainly not over.
Yesterday for the first time I attended the Bird’s nest and the
One criticism I have is that I couldn’t find any even marginally
edible food at the stadium.
The stock market had its best day in a long time, with the SSE
Composite rising 7.6% on the day to close at 2522.
There is less here than meets the eye, I think.
Xinhua reports today that the first half of 2008 saw a
slowdown in the growth rate of loans to real estate developers and
Chinese bankers held loans totaling 5.2 trillion yuan (about 580 billion U.S. dollars) to real estate developers and housing buyers by the end of June, up 22.5 percent year-on-year, the People's Bank of China (PBOC) said Friday.
The central bank said the growth rate was two percentage points
lower than the same period last year, representing a decline for
seven consecutive months since last December.
The country's lenders granted 3.3 trillion yuan to housing buyers buy June, represe
On a related note I got an interesting email today from one of
my former students.
I just talked to a friend in a city in the south.
Collapsing property and other assets prices in some cities like Shenzhen seem to have made banks cautious of a probable rise in default risk, and the tightening will hurt these small enterprises further.
I don’t know how widespread this shortening of maturities is, but a common problem in banking is that when risks are perceived to have ris