China tries to calm stock market chaos: As panic grips markets, authorities have unleashed a range of weapons July 9, 2015 China's stock markets are in the midst of a crash, and with panic spreading, authorities have stepped in with drastic measures to prevent a looming disaster. Over the last 12 months the Shanghai Composite soared 180 per cent in a spectacular bull run which came to an abrupt end mid June. Since then, the [...]
China is, isn’t and may not be the world’s number one July 9, 2015 Until the late nineteenth century, China was the world’s largest economy. It lost that status roughly 150 years after the industrial revolution began in the West. After the Chinese economic revolution of recent decades, it is taken as axiomatic that the crown and mantle of the world’s largest economy will return to Beijing – as [...]
China freezes IPOs as stock markets nose-dive July 5, 2015 China has reportedly stepped up efforts to stabilise its tumultuous stock market by suspending initial public offerings and creating a market stabilisation fund. The world's second-largest economy halted new share offerings yesterday according to the Wall Street Journal. This could improve liquidity because large amounts of money are frozen when subscriptions are taken, diverting it away from current [...]
China in the throes of investment fever: Ordinary Chinese gripped by buzz of stock market speculation July 2, 2015 Three years ago China was in the grip of a walnut investing bubble. In an episode akin to 17th century tulip mania, wealthy Chinese paid up to £3,000 (¥30,000) for a pair of walnuts which cost £36 (¥350) several years prior. In the belief that rolling a nut in the palm of the hand [...]
China’s equity markets have rocketed: Bubble waiting to burst or the market unleashing its true potential? June 18, 2015 China's equity markets have rocketed – is this a bubble waiting to burst or the market unleashing its true potential? China is a world of contradiction for investors. With its billion-strong population and the second-largest economy in the world, it should have been a marvellous place for investment. Not so. The giant economy [...]
China’s crunch point is approaching fast – CNBC Comment June 15, 2015 China will grow this year at a rate that will put the developed world to shame. It will probably grow next year and the year after that too. But the country’s 7 per cent gross domestic product (GDP) growth rate is not what the market cares about. It cares about momentum and performance relative to [...]
China National Nuclear Power: China just had its largest IPO since 2011 June 10, 2015 China National Nuclear Power (CNNPC to its friends) made its debut on the Shanghai Stock Exchange today, raising 13.19bn yuan (£1.4bn) in the process. The IPO is Shanghai's largest since 2011 (although to be fair it has been planning to IPO since 2012), when Power Construction Corporation of China listed. Priced at 3.39 yuan, shares [...]
China opens up card market to US competition May 31, 2015 A CHINESE rule change will come into force today, allowing foreign payments firms such as Visa and Mastercard to apply for licences to process domestic bank card transactions. Following approval, the firms will be able to clear transactions that until now were monopolised by state-backed China Union Pay. The regulation change follows a 2012 ruling [...]
Stock market in China plunges by six per cent May 28, 2015 STOCKS in China plummeted yesterday, but remain at an elevated level having soared so far this year. The Shanghai composite index lost 6.5 per cent, but the collapse is barely a drop in the ocean compared to the index’s recent climb. Since early February the index has gained over 50 per cent, rising from a [...]
Bernanke: China faces risks as it aims for reserve status for yuan May 25, 2015 THE FORMER chairman of the Federal Reserve has warned that China needs to have deep and liquid financial markets if it wants to loosen rules on trading in its currency. “For a currency to be internationally traded, what you need most is liquid markets,” Ben Bernanke told an audience in Shanghai yesterday. “A deep market [...]