The new China rules for investing

[Guest Tony n Terrific]

Artifical propsperity or the real McCoy?

The MSCI China Index, which tracks stocks traded in Hong Kong, has climbed 67% since late October (the S&P 500 has risen 2% in that time).

 

 

http://money.cnn.com/2009/04/28/pf/new_chi...sion=2009042812

[GZBILL]

Artifical propsperity or the real McCoy?

The MSCI China Index, which tracks stocks traded in Hong Kong, has climbed 67% since late October (the S&P 500 has risen 2% in that time).

 

 

http://money.cnn.com/2009/04/28/pf/new_chi...sion=2009042812

 

 

If I had to guess, I'd say artificial in one way or another.

 

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Ok, now I just read the article. This reminds me of something ...

 

... Like between 2003 - 2006 when I was getting over 200% -- yes, you're eyesight is NOT failing -- returns on just about any reputable Chinese mutual fund, most of which were highly dependant on the Shanghai stock market.

 

Of course, the Shanghai shares (and the companies) are still totally crap, but there was just too much liquidity in the market and people practically threw their cash at anything with a pulse (or lied about having a pulse).

 

Deja vu?

Edited April 28, 2009 by GZBILL (see edit history)