These days, speculation is becoming more and more frenzied in China, so the Chinese economy is threatened by the market bubble.
Here is a link to an article, which comes from “The Telegraph UK”. I have chosen this article because I worry about the Chinese economy. Now, the Chinese stock index seems to be abnormal. For example, the Hang Seng China Enterprises Index is increasing sharply. So, Dr Frank Gong, head of China research and strategy, and chief economist at JPMorgan, thinks that there is art risk of an asset bubble in China. In fact, if the Chinese government does nothing, the Chinese economy will bring the inflation, and the CPI (Consumer Price Index) will be higher. Now, the government has tried to remove the bubble by allowing Chinese financial institutions to invest in overseas equities. It’s attractive to many Chinese commercial banks and also can transfer domestic investment pressure to international financial markets. I hope it will be a useful strategy.
Here is a link to an article, which comes from “The Telegraph UK”. I have chosen this article because I worry about the Chinese economy. Now, the Chinese stock index seems to be abnormal. For example, the Hang Seng China Enterprises Index is increasing sharply. So, Dr Frank Gong, head of China research and strategy, and chief economist at JPMorgan, thinks that there is art risk of an asset bubble in China. In fact, if the Chinese government does nothing, the Chinese economy will bring the inflation, and the CPI (Consumer Price Index) will be higher. Now, the government has tried to remove the bubble by allowing Chinese financial institutions to invest in overseas equities. It’s attractive to many Chinese commercial banks and also can transfer domestic investment pressure to international financial markets. I hope it will be a useful strategy.
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