Tag: Chinese equity markets
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China Stumbles, Markets Tumble
Will the Volatility Continue? The Economist called it “a snort from a dragon’s nostrils.” At the end of February, as China’s stock market index fell by more than 8%, stock markets tumbled around the globe — it was their steepest decline since the September 11 attacks in 2001. The Dow Jones Industrial Average dropped more…
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Insane Exuberence
For 2,000 years, foreigners have seen China as the golden dream. Time after time, they have learned to their regret that it is a gilded illusion; and it is happening again. During 2006, foreign investors tripled their investments in the Chinese equity markets. Even with that, foreign capital constitutes only 10% of the Shanghai (SSE)…