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pegasus01
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our economy is still sound robust, but why our stock price slumped so much?

our economy is still sound robust, but why our stock price slumped so much?

2008-7-17 11:37 PM

pegasus01
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China's economy slows but still expands at double-digit pace

China's economy slows but still expands at double-digit pace
by Dan Martin
Thu Jul 17, 2:40 AM ET

BEIJING (AFP) - China's economic juggernaut slowed but still maintained double-digit growth in the first half of the year as it battled inflation and absorbed global setbacks, official data showed Thursday.

The world's fourth biggest economy expanded by 10.4 percent in the first half and 10.1 percent in the second quarter, the National Bureau of Statistics said, down from the sizzling pace of 11.9 percent recorded for all of 2007.

Bureau spokesman Li Xiaochao said domestic inflation, problems with food supplies and global economic woes were among the chief concerns for China.

"Pressure for rapid price increases remains high, there are factors constraining steady agricultural production," Li said.

"The international financial situation is severe and there are uncertainties in world economic development."

Nevertheless, he said China's economy remained strong and that the slowdown was under control.

"The national economy maintains the momentum of steady and fast growth," he said. "This slowdown is in line with our expectations."

NBS chief economist Yao Jingyuan said the economy would likely grow at 10 percent for the full year, although this was still above the target set by Premier Wen Jiabao of 8.0 percent.

China's consumer price index -- the main gauge of inflation -- rose 7.9 percent in the first half of 2008, with food prices soaring 20.4 percent, according to the bureau.

However, inflation has come off 12-year highs seen earlier in the year, when it peaked at 8.7 percent in February, with economists saying the fall was due to a raft of economic tightening measures, including interest rate hikes.

For June alone, inflation was 7.1 percent, the bureau said.

Nevertheless, there were few expectations inflation would fall steeply enough to achieve the government's full-year target of 4.8 percent.

"Certainly, the expectation for inflation is fairly strong ... due to price rises on the international market," Li said.

China had already released data last week showing the nation's trade surplus had fallen nearly 12 percent in the first half, as exporters struggled with the global economic slowdown, particularly problems in the United States.

The appreciation of the yuan against the dollar, as well as curbs such as tariffs on exports imposed by the government to rein in the surplus, also contributed to the decline.

Jing Ulrich, chairman of China Equities for JPMorgan Securities, said that although the economy was slowing down and exporters were feeling the heat, the government had the tools to maintain control.

"Despite the multiple challenges of a global slowdown, high inflation and natural disasters, the Chinese authorities have a range of options for addressing the key domestic policy challenges," Ulrich said.

Zhang Xinfa, an economist with Galaxy Securities, agreed with the official assessment that the slowdown was steady and controlled, although he said the government had to ensure its tightening policies did not bite too deeply.

"The government must strike a balance between maintaining economic growth and fighting inflation," he said.

Economists said the earthquake that devastated large areas of southwest China in May, leaving 88,000 people dead or missing, did not have a big impact on the economic growth numbers in the second quarter.

However, a huge post-quake reconstruction effort could lift the growth numbers in the short term, according to Moody's Economy.com expert Sherman Chan.

"Rapid and large-scale reconstruction works in the next couple of years will provide a boost to economic activity," he said.

Industrial output, a key measure of activities in the nation's factories, expanded by 16.3 percent in the first half and 16.0 percent for June alone, according to the bureau.

China's fixed asset investments rose 26.3 percent in the first half of 2008 from a year earlier, the bureau said.

2008-7-17 11:38 PM

pegasus01
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what's hell happening in stockmarket?

what's hell happening in stockmarket?

2008-7-17 11:39 PM

interesting (Steven Schreiber)
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Because China's numbers are, in general, not trustworthy. That's why China's GDP at parity has been revised downward so much.

2008-7-18 12:08 AM

ruserious
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Here's my two cents on the happenings in the Chinese stockmarket;

The stockmarket has slumped so much because it was prevously at an unrealistic level and it's only now returned to a reasonable level.

A lot of companies are still overpriced when compared to their global peers so it shouldn't come as a surprise if the market continues to fall.

Chinese companies have used the stockmarket to raise funds with little regard for the interests of existing sharholders which was bound to catch up with them eventually.

2008-7-18 09:40 AM

fatdragon
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QUOTE:

Originally posted by pegasus01 at 2008-7-17 23:37
our economy is still sound robust, but why our stock price slumped so much?

ALL stock markets have slumped - not just China's. However, I seem to remember that about this time last year a number of us were predicting that China's stock market was over inflated and due for a fall.

What has accelerated the fall is the drop in share prices round the world in response to the American economy. If America has no buying power then she cannot afford to buy as many foreign goods as she did previously. This will adversly affect Chinese companies selling to overseas markets and have a knock on effect with all share prices.

The Chinese economy is currently expanding so it is reasonable to think that Chinese shares are a good long term investment for perhaps the next 20 years on current forecasts. The world's econimy will take a year or two to sort itself out so now is not the time to invest in the open markets. Chinese investors are typically immature financially speaking with most people looking to make a fortune overnight. There is also a tendancy for these investors to over react to market changes so caution in the Chinese stock markets is advised.

2008-7-18 10:04 AM

pegasus01
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QUOTE:

Originally posted by ruserious at 2008-7-18 09:40
Here's my two cents on the happenings in the Chinese stockmarket;

The stockmarket has slumped so much because it was prevously at an unrealistic level and it's only now returned to a reasonable ...

wrong! completely wrong!
this kind of foolish notion has brought tremendous disaster to stockmarket.

2008-7-18 11:17 AM

pegasus01
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influence from the said American economy crisis is actually very limited, it has been over exaggerated.

2008-7-18 11:27 AM

pegasus01
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QUOTE:

Originally posted by interesting at 2008-7-18 00:08
Because China's numbers are, in general, not trustworthy. That's why China's GDP at parity has been revised downward so much.

i think those figures from national statistics bureau is reliable and no revised artifically

2008-7-18 11:30 AM

pegasus01
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stockmarket slump and collapse will bring deadliest negative impact not only to economy but also to whole society. as majority of citizen lost their wealth in unbelievable figure!

2008-7-18 11:32 AM

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susansusan (SUSAN)
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Go back to the homepage, you will see how Pakistan reacted to the stock market slump.

2008-7-18 11:34 AM

#11

pegasus01
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without reasonable compensation, people will vent their emotion and grievance somwhere someday. and it may lead something very unhappy happen

2008-7-18 11:35 AM

#12

pegasus01
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China is an asian engine as well as a world engine, we shall give up any pigheaded notion to handle and administrate o stockmarket

[ Last edited by pegasus01 at 2008-7-18 11:38 AM ]

2008-7-18 11:37 AM

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fatdragon
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QUOTE:

Originally posted by pegasus01 at 2008-7-18 11:27
influence from the said American economy crisis is actually very limited, it has been over exaggerated.

Share prices worldwide have dropped more than the dollar's depreciation so maybe you are correct. I hope so and maybe some of my investments will rebound in due course.

2008-7-18 11:50 AM

#14

pegasus01
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misleading policy and dull inaction from its administration have screwed confidence of all investors in this country

2008-7-18 12:06 PM

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pegasus01
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QUOTE:

Originally posted by fatdragon at 2008-7-18 11:50

Share prices worldwide have dropped more than the dollar's depreciation so maybe you are correct. I hope so and maybe some of my investments will rebound in due course.

what american authority have done to save and rescure their stock investment confidence? plz watch out.

2008-7-18 12:10 PM

#16

pegasus01
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RMB1400 billion yuans have been evaportated so far,it is equal to wealth that half year GDP of our whole nation ! but those bureaucratic officials still sit there still and still be inactive.
http://msn.ynet.com/view.jsp?oid=41659978

2008-7-18 12:15 PM

#17

pegasus01
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who comes to save and rescue the slumped stockmarket?
http://stock.msn.hexun.com/2008-07-18/107522063.html

2008-7-18 12:16 PM

#18

pegasus01
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if you sit still in your office today, people will send you into hell tomorrow!

if you sit still in your office today, people will send you into hell tomorrow!

2008-7-18 12:17 PM

#19

pegasus01
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how much we have lost from the collaped stockmarket so far?

how much we have lost from the collapsed stockmarket so far?

it is reported RMB 1400 yuans billion has gone to air, which whole chinese people need work for half year to earn back!

it is worthwhile or not?

[ Last edited by pegasus01 at 2008-7-18 12:31 PM ]

2008-7-18 12:25 PM

#20

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