Will the Shanghai Composite Index crack 3,000? Having closed today at 2,928.21 (meaning the index is up more than 60% this year), that is looking like a real possibility. While the People’s Bank of China has added its voice to the chorus of those calling the present time a "critical moment" for China’s economy, the […]
Category: Markets
The Capitalist Roader Fund is getting stir-crazy. We’ve been a cash-only fund since February, when we sold Anhui Conch Cement (600585.SH) at RMB32.90. Excitement about infrastructure and government spending pushed Conch up to around RMB45 in early May, but its performance has been distinctly lackluster since then. It closed today at RMB39.84. In considering what […]
Loyal fans of the Capitalist Roader Fund need not worry at the recent lack of news. The fund has not gone anywhere. Of course, the market has. We cashed out in February, convinced that the SCI and Anhui Conch Cement (600585) couldn’t sustain their positions, which were 2,300 points and RMB32.90 respectively, as the market […]
So the People’s Bank of China – more specifically, PBoC Deputy Governor Yi Gang – says it’s not concerned about the massive growth in bank lending in the first quarter. In case you haven’t been paying attention, that lending amounted to US$670.9 billion, 91.6% of China’s target for the entire year. Others – more specifically, […]
The herd is a powerful thing. When A-shares were rising in 2007, the conventional wisdom was that they were unstoppable. When they were falling in 2008, there seemed to be no end in sight. In 2009, the herd has decided that government stimulus will be the market’s savior, and the Shanghai Composite Index has risen […]
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