Why can not the stock market decline in China than in Vietnam, a large

 Why can not the stock market decline in China than in Vietnam big?
2008-7-18 Daily News
take a lot of people in China and Vietnam than the decline in the stock market, and for China's stock market fell more than Vietnam as the world angrily grievances. If a market asset prices were artificially suppressed, has yet to clear the bailout measure, why do not lower than the Vietnamese. This is not some requirements for the capital market bubble prick who come seeking long-awaited you?
a friend to the current market and the world in 1929 compared to the Great Depression. I believe that the situation Bu Zhiyu so pessimistic, and now the currency of gold as the mortgage crunch does not exist, and family property have thick global wealth much more. The U.S. subprime mortgage crisis, global wealth pay. As China's foreign exchange reserves in the world, the international public opinion on the Bank of China became the lender of last resort. U.S. Treasury data show that, as of the end of June last year, China these institutions mainland investors have long-term debt 376 billion U.S. dollars, foreign holdings accounted for almost one-third of the total debt of these institutions. foreign assets held by China's projected growth, the economist Brad Setser b ( Brad Setser) estimates that China currently holds 500 billion to 600 billion U.S. dollars of U.S. agency debt, U.S. agency debt outstanding accounts for one tenth of the total. our gathering and use of wealth, making China the subsidies by U.S. financial institutions .
relatively closed Chinese market, China's market valuation is not equal influence from the international market: the international market increased, the Chinese market may not rise; but the international market fell, the Chinese market a magnifying glass to enlarge the international market, adding that fear factor .7 8 Recently, the U.S. temporarily stopped falling oil prices, China's stock market stabilized and the U.S. market simultaneously; in July 18,UGG bailey button, the global transaction with the Chinese market again, as US-Iranian hand, tight geographical factors in international oil prices disappeared, oil price fell to 130 dollars a barrel below U.S. economic data was better than market expectations. U.S. stocks rose, A-share market in the July 19 move up. large capitalization stocks pulled into the Olympic team holding stability of a new round of market Game time is almost up match point with stocks. Sinopec forecasts a 50% performance but as an investment sector stimulants,UGG shoes, and that because the market factors, of course.
the pricing power of Chinese capital market gradually by foreign control. We should not be like the frog in a well, look for the number of QFII is not high, the impact of foreign investors in the capital market is not big. In fact, foreign investors in China's capital market impact is comprehensive.
international investment bank grasped the rights of Chinese companies ratings , Goldman Sachs,UGGs, Bank of China shares for sell recommendations, the recommendations of international investors is do the same line. in the first half, Morgan Stanley Capital International China Index (MSCI China) decreased by 28%. The index tracks stocks in overseas markets in China performance of the company constitution and the Shanghai and Shenzhen 300 Index close. in the international market, China's stocks also suffered a severe sell-off, which is considered China's economic and corporate fundamentals the expected negative results occur.
Moreover, a number of international investment institutions Air started to sing the Asian market, led by China, and then sing the air of the real economy in the region. According to China's fuel subsidies cost the government the burden of the refinery, the situation will be slightly better, but still far below last year's increase of 30%. Citigroup research report that so far this year, the rate of increase in commodity costs 23 times faster than export prices. estimated EBIT of 12.1% at present, ranking lower than the U.S., Europe and other emerging markets worldwide. As the Asian central banks trying to contain soaring inflation, may further increase borrowing costs, a serious erosion of the profits of large borrowers.
China's capital market pricing power is inherent due to the gradual loss. Some A-share listed companies, H shares listed on U.S. stock market valuation of different, A shares the highest standards if the market valuation system, then the valuation of A shares down the center of gravity, of course. This shows that, at least in the capital market, the yuan is overvalued, and only devaluation, foreign capital market valuation to integration, which means that domestic investors of wealth can only shrink.
in China quite the market to foreign institutions in emerging markets including China, prescription is wrong. International Monetary Fund 17, said that emerging economies need to fight inflation as a to reduce government deficits, and increase the pace of currency appreciation to curb inflation risks.
This is the last century, the International Monetary Fund to fight global financial risk of the old prescriptions, except in South Korea and a few other areas, they all failed prescriptions, and Correspondingly, the birthplace of the financial crisis the U.S. is desperate to extend credit. Unfortunately, IMF has a large number of followers in China, the monetary tightening their deteriorating living conditions of Chinese enterprises by administrative means to disrupt the capital market configuration. so that the pricing power of Chinese equity transactions fall into the hands of foreign investors.
U.S. government has been helping businesses Dunan Guan. Let us look at the history of the U.S. bailout, while not directly rescue the capital market, while filling the capital market mm1932 benefit, the additional on business loans, 1958, modify the years, the company sent the Federal Deposit teams law amended Article 13, paragraph 3, for the U.S. direct assistance in times of emergency storage of some enterprises; cut interest rates in 2001 to relax after the 911 loans, 2007,2008, introduced a series of measures to help financial institutions through the subprime mortgage crisis.
What is government's responsibility? it is. What is the responsibility of the central bank? it is. take the right incentives to make high-quality companies through the economic down cycle, the capital market The confidence has always been immortal, so that people hope for the future,bailey UGG boots, willing to tide over the difficulties.
Note: Thanks to Mr. Zou Hengfu, providing insights on the U.S. economy. He is an optimist, but I'm still waiting to see. Meanwhile, he also provides the search for U.S. government intervention, free market data. have a friend that is equivalent to two rooms in the United States Treasury Bonds, not damaged. desire to good, but too naive. issuers of crisis, or the level of decline, the inevitable result of the bond negative impact. U.S. government support, mainly in the mouth, against the powerful, the U.S. Congress has not passed, even if Congress passed the rescue case, with U.S. taxpayer money to support bond prices, it is impossible.
weekend is up. I wish you relax , take a nice weekend.