Chinese Economy

China’s stock market capping experienced its worst week since 2008, amid mounting concern that the nation’s equity bull market has propelled valuations to bubble-like levels. On Friday, June 19th, the Shanghai Stock Exchange Composite Index tumbled a record 6.4%, while the Shenzhen Stock Exchange Composite Index plummeted 5.9%.…

Chinese stocks sank again on Thursday, June 18. The Shanghai Stock Exchange Composite Index plunged 3.7% while the Shenzhen Stock Exchange showed an equally large loss of 3.6%. In the two mainland stock exchanges, there were a total of 134 companies whose share price tanked the 10% limit.…

Cisco Inc. is looking to mend its troubled relationship with the Chinese government by pouring $10.0 billion into local investments and partnerships, a long-term strategy meant to insulate the company’s earnings from a downturn in Western economies. The plan was announced on Wednesday, June 17 by incoming CEO…

The Chinese stock markets are now worth $10.3 trillion, another big milestone for the emerging economy. By the end of May, the Shanghai Stock Exchange had a total market capitalization of $5.9 trillion, and the Shenzhen Stock Exchange sat at $4.4 trillion. Combined, the mainland Chinese stock market…

On June 1, 2015, HSBC published its report on China’s Manufacturing PMI for the month of May. The index is posted at 49.2, slightly up from April’s 48.9, but it still indicates a contracting manufacturing sector. (Source: HSBC/Markit, June 1, 2015.) The Purchasing Managers’ Index, or PMI, is…

On Sunday, May 10, the People’s Bank of China (PBOC) announced that it will lower its one-year benchmark lending rate by 25 basis points to 5.1%. They also cut the one-year deposit rate by the same amount to 2.25%. This is the third interest rate cut by China’s…

On Monday, May 4, 2015, HSBC released its China Manufacturing PMI for the month of April. The index is down to 48.9—the lowest in the previous 12 months. Moreover, the drop is also the sharpest it’s been in a year. (Source: HSBC/Markit, May 4, 2015.) Purchasing Managers’ Index,…

China’s growth economically has actually slowed from nearly 12% in 2012 to seven percent for the first quarter of 2015, but the Shanghai Stock Exchange Composite Index has gained 100% in one year. China bubble or not, investors should pay close attention. China Bubble: Shanghai Composite Returning 31%…

China’s economy is facing headwinds that could lead to a Chinese economic collapse in 2015. Economic growth forecasts say China will grow at a very slow pace this year, its slowest pace in a quarter-century and well below historical averages. With the recent turn of the Chinese calendar…

The Chinese economy is showing signs of stalling, but there are numerous areas that continue to show decent growth metrics, including automobiles and mobile phones. Now, if you think AT&T Inc. (NYSE/T) or Verizon Communications Inc. (NYSE/VZ) are big, take a look at China Mobile Limited (NYSE/CHL). China…

A few years ago, investors couldn’t get enough of Chinese stocks. This led to numerous frauds committed by crooks in China that has since tarnished the reputation and reliability of all Chinese companies, whether they’re legitimate or not, despite their operating in one of the top growth areas…

China is facing some growth issues, but so are the majority of the countries in the Western Hemisphere. The country’s new government leader, President Xi Jinping, came on board in March 2013 and is planning to change the landscape of China vis-a-vis a new focus on domestic consumption…

If you think Chinese stocks are too speculative to consider and buy, then you need to read what I’m going to say over the next few paragraphs. Yes, it’s true that China-based companies have subjected U.S. capital markets to erroneous results and reporting in the past and that…

Understanding the economic slowdown in the Chinese economy is very important because not only does it impact American companies doing business there, but what happens in the Chinese economy—now the second-largest economy in the world—affects the global economy. While media outlets tell us the Chinese economy will grow…

For the first time in more than three years, Chinese stocks are beginning to show some promise for growth investors looking for opportunities outside of the United States. The benchmark Shanghai Composite Index has moved to just above its close of 2013; hence, it’s more or less in…

The Securities and Exchange Commission (SEC) is currently shutting down numerous Chinese shell companies trading on U.S. exchanges, such as the over-the-counter market and the highly speculative Pink Sheets stock exchange. This is good and is something the SEC needs to continue to pursue and enforce, so domestic…

If you don’t believe China is the world’s largest auto market, then you probably have never been to Beijing or Shanghai, where the traffic gridlock makes Congress here seem pretty lax. Despite the Chinese government’s ongoing efforts to regulate the number of vehicles on the country’s roads, especially…

Spain just rejected a massive $30.0-billion proposal from Las Vegas Sands Corp. (NYSE/LVS) to build a casino and entertainment resort near Madrid. The project would have been significant, with 12 hotels, six casinos, and many other amenities injecting some life into the stagnant country where the unemployment rate…