China Has Worst Day Since August

After an impressive rally off the Summer lows, China's Shanghai Composite index has recently risen to within 3.5% of its 2009 highs.  However, after last night's decline, the index has dug itself into a bit of a deeper hole.  Last night, China's benchmark index declined over 3% for its worst day since August 31st.  The decline was in reaction to growing concerns that the nation's largest banks will be forced to raise capital due to the unprecedented amount of loans they have extended in 2009.  With China down over 3%, the baltic dry index down for the third straight day, and Russia cutting interest rates to record low levels, the early tone for emerging markets is looking a little shaky.

Subscribe to Bespoke Premium to receive more in-depth research from Bespoke. 

Comments

[Michael]

It looks like it is moving higher again overnight. It will be interesting to see which way it will end up heading.

adminhttp://invetrics.com

[buy viagra]

China's underdeveloped transportation system—combined with important differences in the availability of natural and human resources and in industrial infrastructure—has produced significant variations in the regional economies of China.

Economic development has generally been more rapid in coastal provinces than in the interior, and there are large disparities in per capita income between regions. The three wealthiest regions are along the southeast coast, centred on the Pearl River Delta; along the east coast, centred on the Lower Yangtze River; and near the Bohai Gulf, in the Beijing–Tianjin–Liaoning region. It is the rapid development of these areas that is expected to have the most significant effect on the Asian regional economy as a whole, and Chinese government policy is designed to remove the obstacles to accelerated growth in these wealthier regions.