Shanghai Composite to New Lows

HenryTo · Posted: Wed Jul 20, 2005 10:22 pm Post subject: Shanghai Composite to New Lows

Again testing its most recent lows and look set to break below 1,000 anyday now:

http://finance.yahoo.com/q/bc?s=000001.SS&t=6m&l=on&z=m&q=l&c=

This says a lot about the health of the Chinese public companies (overcapacity, overinvestment, etc.) - despite the fact that the GDP numbers coming out of China look so optimistic.

victor · Posted: Thu Jul 21, 2005 12:34 am Post subject:

Hello Henry,

Despite political preassure from the USA, does a RMB revaluation really make economic sense?

I mean, ok, the GPD growth we saw yesterday was spectacular . But many other figures are pointing through a devalution instead. There are: stock market decline, the inflation is falling quickly therefore bonds are up sharply, and as you wrote they have overcapacity and overinvestment.

It doesn't looks like that a RMB revaluation will save nor China neither the world.

I'm far away from China and only get information from news and articles. I know that you are in touch with people there, so what are their feelings about their currency?

Best regards.

Victor