I don’t know if I will have room for all these China stories (George!) in this weekend’s linkfest. On the likely chance I don’t, here’s a broad overview of many interesating  articles about the fastest rising global economic power:


CHINA

China’s unbalanced economy:
In any ordinary economy, a triple-barrelled announcement of the kind
issued by China’s central bank on Friday evening might have made more
of an impression. With an eye to today’s top-level US-China meeting in
Washington, the People’s Bank of China tightened lending and eased
controls on
its currency, policy prescriptions that touch all their host’s concerns
about Beijing’s seemingly unstoppable export-driven economy. (FT)

China’s Very Strange Decade

The China Solar Hotbed: Chinese solar-power companies are descending on U.S. stock
markets, offering investors a new way into one of the fastest-growing corners of
the renewable-energy industry. But things aren’t all sunny. The latest frenzy over Chinese solar stocks was in evidence last
week, when Nanjing-based China Sunergy Co. made its debut on the Nasdaq Stock
Market, rising 51% in its first day of trading on Thursday. Its shares were up
46 cents, or 3.19%, to $14.90 yesterday, giving the company a market value of
about $570 million.
(Wall Street Journal)

Why China Relaxed Blogger Crackdown  (free Wall Street Journal)

Yuan Isn’t the Cause of U.S. Trade Deficit, Wu Says: The yuan isn’t the cause of the U.S. trade deficit and a “large” appreciation would hurt China’s economy, Vice Premier Wu Yi said, signaling the nation won’t cave in to demands for faster gains.   (Bloomberg)

Tainted Chinese Imports Common:
Dried apples preserved with a cancer-causing chemical.Frozen catfish
laden with banned antibiotics. Scallops and sardines coated with
putrefying bacteria. Mushrooms laced with illegal pesticides. These
were among the 107 food imports from China that the Food and Drug
Administration detained at U.S. ports just last month, agency documents
reveal, along with more than 1,000 shipments of tainted Chinese dietary
supplements, toxic Chinese cosmetics and counterfeit Chinese medicines.
(Washington Post)

Pao Mo’: That’s Chinese for Bubble

Day trading in China is out of control. “Despite an interest rate rise on Friday aimed at cooling
the market, retail investors ignored the messages from Beijing and
opened 287,000 trading accounts on Monday, 35,000 more than on Friday.
The explosion in day-trading has created some unintended consequences
in Shanghai in the form of  unwashed dinner dishes, badly ironed
shirts, and dusty floors. In recent weeks the city has developed a
shortage of ayis, the domestic helpers who do chores in the homes of
middle-class families, because some have found more gainful employment playing the market.” (FT)

China’s Thirst for Oil and Cancer treatments

Stock-buying fever grips China:
A total of 4.79 million new A-share trading accounts were opened in
April, 853,500 more than the combined total for the previous two years,
according to statistics from the China Securities Depository and
Clearing Corporation. On Tuesday, the first trading session after the
week-long May Day holiday, nearly 370,000 A-share accounts were added,
almost half of the number for the whole year of 2005. (China Daily)

Chinese Investors Crunching Numbers Are Glad to See 8s:
Part superstition and part self-fulfilling prophecy, numerology is a
basic trading strategy in China. The philosophy reflects the widespread
belief in Chinese society that numbers contain clues to good fortune.
It is a little noticed force adding fuel to a roaring market in the
world’s fourth-biggest economy. The benchmark Shanghai Composite Index
is up 56% this year and quadruple its level at mid-2005, a spike that
is raising concerns about an investment bubble. (Wall Street Journal)

Category: Weblogs

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “We’ve Gone China Crazy”

  1. Greg0658 says:

    If trade is not balanced (from any money denomination) then it’s bad for the USofA. Period. Carry upstart trade for only so long.

    Balancing our standard of living will be the feat of the next ? years.

  2. Winston Munn says:

    “These were among the 107 food imports from China that the Food and Drug Administration detained at U.S. ports just last month…”

    As long as the FDA doesn’t stop the influx of “red pills”, there won’t be a thing to worry about in the matrix.

  3. ECONOMISTA NON GRATA says:

    “We’ve Gone China Crazy”

    It’s all so passe and all so 80s. Geeezzzzz…! You can’t even walk one block without passing by a sushi bar.

    “You tie my tie, I tie your shoe.”

    Say it fast and loud… It’s one of my favorite lines from “A Bridge Over the River Kwai”, or was it “King Rat”…? Those movies all look the same to me… I mean don’t get me wrong, I’m not prejudiced, those were some of my favorite films. Know what I mean…?

    Chinese saturation of the press is xenophobic nonsense. I anticipate more and louder as things start to turn sour in this neck of the woods. We’re going to need a “Bad Guy”. Let’s see, Sadam is dead, Gadafi is too ridiculous looking, Blair has resigned and besides he’s gay, not that there’s anything wrong with that, however it’s like beating a dead horse. How about, ummm, Yes! Paulson and Bernake, NO….! Not that they’re gay, that they’re dumb-dumbs…

    And that, ladies and gentlemen is about as nice as I can be….

    Arigato,

    Econolicious

  4. Winston Munn says:

    China has a positive trade balance. Europe has a positive trade balance. Both economies are growing faster than is the U.S. economy, which relies on consumer consumption, powered by debt creation, to sustain growth.

    The tophat, the iron, and the racecar are all playing Monopoly. The tophat and iron are accumulating debt-free properties and adding houses and hotels, while the racecar eschews such trivialites and relies instead on the cash from passing Go, funds its next trip around the board with debt from mortgaged properties, and hopes Chance will find a bank error in his favor.

    I wonder who will win this game?

  5. Michael C. says:

    It’s just too sad. Like watching a train wreck in slow motion.

    It seems with the speculative retail fervor that the market is well into its parabolic stage. The gains during this stage are always ALWAYS given up when bull markets end.

    Like Fleckenstein says, some will benefit from their raging market, but almost everyone will feel and take part in the pain when it ends.

  6. Sponge Todd Square Pants says:

    Communists are trendy.

  7. Winston Munn says:

    “Communists are trendy”

    LOL. Does this mean Mao jackets are the next big craze, a la Nehru jackets?

    By next year, the best dressed man will be wearing Mao jackets, Indian yogi pants, Wheely’s skateboard shoes, and an emergency strap-on cannister of helium in case the balloon starts to sag.

  8. John says:

    The tophat, the iron, and the racecar are all playing Monopoly. The tophat and iron are accumulating debt-free properties and adding houses and hotels, while the racecar eschews such trivialites and relies instead on the cash from passing Go, funds its next trip around the board with debt from mortgaged properties, and hopes Chance will find a bank error in his favor.

    I wonder who will win this game?

    Well done, Mr. Munn! Well done!

  9. peter from oz says:

    As I am not posting this until you guys are on your weekend no one will see it
    however for the record
    the above comments indicate (assuming you represent a US sophisticated investor sample)a lack of awareness of China & its VOLATILE stock market impact on global investor emotion particularly on the US
    a few months ago you were wondering where the retail clients were to signal the top of your market.
    look they’re in China
    this is a 24/6 global market stupid
    if they crash monday/tuesday our time you won’t start trading until tuesday night
    enjoy the beach before the TSUNAMI
    PCM

  10. Samuel says:

    The shoeshine boys are all in the Chinese stock market now. Look out below.

  11. China’s market has gone crazy. It is all anyone wants to talk about with me, both Chinese and non-Chinese alike. Who is even left to buy?