Thursday, May 10, 2007
If you see a bandwagon, it's too late!
FT.com: Bourses in China eclipse all of Asia
The value of shares traded on China’s stock markets on Wednesday was greater than the rest of Asia combined – including Japan!
Posted by nearly30 @ 09:30 PM (194 views) Add Comment
7 Comments
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1. nearly30 said...
With inflation now above 3 per cent in China, negative real returns offered by bank deposits are helping fuel the stock frenzy.
Now if the FT can see this for China - then why don't the MPC wprry about that here?
2. nearly30 said...
Interesting post from BBC's Robert Preston:
"However I find it hard to ignore the paltry profits generated by Chinese companies and their poor accounting standards. Listed Chinese companies are typically trading at prices equivalent to 50 times their earnings - which brings back disturbing memories of dotcom lunacy from the not-too-distant past. "
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/05/stockmarket_mania.html
3. Scott said...
I guess it seems that China has made a lot of progress over the past few years, has turned into a bubble, the bubble will burst, then they will recover and at the end of it they will come out good. This is how a developing country turns into a developed country so don't say bad things about them.
4. japanese uncle said...
A market originally installede with market failure ie interventions by the state who holds the majority of shares. What a farce!
5. lvmreader said...
Technically it wasn't even DOTCOM lunacy. It was Technology, Media and Telecoms (TMT) lunacy.
Cisco
Nortel Networks
Hibernia 360
JDS Uniphase
Lucent
Vodafone Mannesman
Hutchinson Whampoa
e.g. Nortel, JDS Uniphase Profit Warnings from 2001
These dwarfed ANY dot.com.
Then there were the B2B service providers like Scient, Sapient, Razorfish, PixelPark.
Then the professional services providers like McKinsey got killed.
What is more disturbing is that investment banks have brought back those very same initials!
The DOTCOM thing just captured the public imagniation. There was massive fraud at all levels going on.
Enron, MCI, Dynegy, El Paso.
To say nothing of the investment bank research depts.
I was there. I remember the pain.
I also remember when 4 young professionals who had just finished University had to share houses in e.g. South London in the early 90s , despite having a combined household income of almost £100,000 (which was a lot of money in 1992). The house itself was worth nowhere near e.g. £500,000.
Insanity this time is several orders of magnitude worse.
6. sold 2 rent 1 said...
Has the number of new internet stock trading accounts increased from 200,000 to 300,000 a day?
If so, then the rate of growth has increased 50% in the last month.
Good graphs in this article.
http://www.safehaven.com/article-7417.htm
7. Darren said...
"I also remember when 4 young professionals who had just finished University had to share houses in e.g. South London in the early 90s , despite having a combined household income of almost £100,000 (which was a lot of money in 1992). The house itself was worth nowhere near e.g. £500,000"
Well said lvmreader, this sort of thing is going on at the moment and it is insane. There has to be something blindingly wrong if 2 people on average to high salaries cannot afford a 1 bed flat. When will it end ? That is the only question I am interested in. I think like a few people have already figured out, the best bet is to leave the UK.