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Category Archives: Stockmarket
Pushing on a String in China Will Not Save its Stock Market
It’s all going to end in tears for China bulls who are putting way too much faith on China’s ability to stimulate the economy. Chinese premiere Wen Jiabao's may be pushing for growth through monetary policies and fiscal incentives, now that the regime has acknowledged the severity of China’s slowdown. Unfortunately, fine tuning measures will neither save the Chinese economy nor its stockmarket, which has yet to truly reflect reality.
Is China Heading for a Hard Landing?
A “soft landing” in China is beginning to look like wishful thinking. To cushion the blow to exporters during the global financial crisis, the Chinese property bubble was inflated recklessly. Built on the foundations of excess investment the Chinese economy had become a house of cards requiring growth to avoid collapse. However, China has had to choke credit to the property sector because absurd property valuations and inflation were beginning to affect social stability. Now the runaway train of development is going off the rails just as the euro-zone crisis is threatening global trade, and the shockwaves will be felt across the world.
A New Wave of Chinese Accounting Scandals Puts Pressure on Regulators to Act
The Sino Forest scandal last year put the spotlight on dodgy Chinese accounting. Chinese companies listed in the West and, were likely to become uninvestable, the Angry Analyst argued. Such negative publicity was also likely to damage confidence in Hong Kong listed stocks. Since then, a wave of new frauds in has hit Chinese companies in New York and Hong Kong, leading to growing pressure on Western regulators to take action.
Also posted in Companies Tagged auditors, China, Deloitte, Ernst & Young, fraud, KPMG, Nasdaq, PCAOB, PricewaterhouseCoopers, SEC, Sino Forest Leave a comment
The West’s Manufacturing Continues to Pay for Green Gesture Politics
The true economic cost of Western government’s obsession with fighting global warming is becoming increasingly apparent. News that a fifth of the UK’s soaring energy bills now consist of hidden environmental subsidies has brought home the cost of Britain’s economically suicidal commitment to reduce CO2 emissions by 80% within 40 years. It can’t be long before there is a political backlash from consumers and industry against the West's green gesture politics.
Also posted in Companies, Global Warming Scare, Uncategorized Tagged China, climate, coal, EU, fuel poverty, Germany, manufacturing, renewable energy, steel, UK Comments closed
Transparently Time to Sell Chinese B Shares.
The entire Chinese stock market is feeling the weight of fraud fears, as growing concerns about accounting irregularities in US-listed stocks tars every stock with the same brush.
A Plague of Fraud In Chinese Stocks
Corporate governance in China is known to be so appalling that wise investors steer well clear of the mainland. But the big story right now is the number of fraudulent companies listing on Western stock exchanges. Muddy Waters Research, the agency set up by short seller Carson Block, has been exposing one fraudulent company after another. And an SEC investigation is likely to lead to enforcement against a number of accounting firms.
The Second Wave of Europe’s Banking Crisis is Crystallizing
As the crisis in the European financial sector deepens, trading patterns are indicating a major sell-off within the next month, if the market breaks out of the flag patterns forming in the MSCI European Financials Index. After all, the ECB’s extension of its liquidity safety net for vulnerable euro zone banks – and the guarantees for troubled banks in Ireland – can only fuel suspicion about skeletons in the closet.
Also posted in Bond markets Tagged banks, BIS, ECB, EU, Euro, financials, Germany, ishares, sovereign debt crisis, US Leave a comment
Stock Markets Haven’t Begun to Price In the Global Growth Shock