China's Inflation Problems Give Me Worries

StocksonWallStreet · 07-28-2009, 04:51 PM

Is China’s market still rallying or is it coming to a halt? Does anyone really want to be against China and miss out on the gains. I have been part of the rally taking gains from YGE and PTR yet can we continue to expect it to rise at such a rate? If you are invested in Chinese Stock consider taking profits especially from YGE which I believe to have peaked at $16 and this is why. In 2009, the Chinese Stock Market is up 85% as a result of help from the banks loose lending and favorable foreign speculators. This has given the economy an enormous amount of cash and skyrocketed stocks over economic reality. Can it continue to support this? We have seen recent attempts by the China Securities Regulatory Commission and other government regulators to coo down the trading by tightening regulation yet do they want to disrupt China’s economic recovery? Any moves right now won’t stop China, as the Bulls will run wild. However come fourth quarter could the Chinese government have to shift its monetary policy to stop rising inflation? If so that could send a downfall in their economy and crash the markets. Many say any form of regulation such as raising requirements or interest rates is unlikely to happen because they fear it could hurt the recovery however what if inflation becomes a raging problem? Click on link to read more:

China’s Inflation Worries Build | Stocks on Wall Street

StocksonWallStreet · 07-28-2009, 04:52 PM

What do you guys think about the inflation problem China has at hand?

07-28-2009, 04:51 PM	#1
StocksonWallStreet Senior Trader Join Date: Jul 2009 Location: Tempe, AZ Posts: 198 Favorites: FWLT, USG, GOOG Rep Power: 24 Reputation: 106	China's Inflation Problems Give Me Worries Is China’s market still rallying or is it coming to a halt? Does anyone really want to be against China and miss out on the gains. I have been part of the rally taking gains from YGE and PTR yet can we continue to expect it to rise at such a rate? If you are invested in Chinese Stock consider taking profits especially from YGE which I believe to have peaked at $16 and this is why. In 2009, the Chinese Stock Market is up 85% as a result of help from the banks loose lending and favorable foreign speculators. This has given the economy an enormous amount of cash and skyrocketed stocks over economic reality. Can it continue to support this? We have seen recent attempts by the China Securities Regulatory Commission and other government regulators to coo down the trading by tightening regulation yet do they want to disrupt China’s economic recovery? Any moves right now won’t stop China, as the Bulls will run wild. However come fourth quarter could the Chinese government have to shift its monetary policy to stop rising inflation? If so that could send a downfall in their economy and crash the markets. Many say any form of regulation such as raising requirements or interest rates is unlikely to happen because they fear it could hurt the recovery however what if inflation becomes a raging problem? Click on link to read more: China’s Inflation Worries Build \| Stocks on Wall Street

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07-28-2009, 04:52 PM	#2
StocksonWallStreet Senior Trader Join Date: Jul 2009 Location: Tempe, AZ Posts: 198 Favorites: FWLT, USG, GOOG Rep Power: 24 Reputation: 106	What do you guys think about the inflation problem China has at hand?