May 31, 2007

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China bubbles and pork

It's a truth universally acknowledged that China's stock market has all the hallmarks of a bubble. As further proof, The Standard reports on a sample of Chinese bloggers' reactions to yesterday's stock market sell-off. That so many bloggers are even talking about the stock market is the first piece of bubble evidence today. The second are the reactions themselves:

"If you want to drag down the market, why you don't you also drag down the unaffordable medical and educational fees so that we could have a better life too?" one blogger exploded, obviously hoping to deliver the message to the regulators.

"Now that you can sleep well with everyone scared away [from the stock market], our nightmare has begun because we have kids to feed and a whole family to take care of!"...Some retail investors said they would take their revenge today.

"Now that all stocks have become cheaper than ever, I would pour in all my money, including that saved for my children's education, into the market and give you not just a headache, but a big terrible fever!" another blogger wrote.

And today's third piece of evidence:
Currently, 100 million people in China have brokerage accounts - nearly one-tenth of the country's population. Mainland media reports say there are people quitting their jobs to become full-time stock traders. In several cases, their investments have reportedly earned them three times their monthly salary in a week.

Monks have even left their monasteries to try their luck on the stock market.

Remind you of the late 90s, perhaps? And here's the final piece of evidence:

burglar.jpg


"If you don't want to be a burglar, invest in stocks." - City police department.

In other Chinese economic news, the rapidly rising price of pork is having a big impact both in China and Hong Kong. Yet another symbol of excess liquidity chasing not enough pork?

posted by Simon on 05.31.07 at 09:09 AM in the




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posted by: muchgooder on 05.31.07 at 04:10 PM [permalink]

last time i was in our factory, i saw the guys who normally load the container checking their stocks online...

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