watch it all come crashing down, page-18

Beijing2Rock>> The reason why I feel the Chinese market will go though a large correction is this, first, its exports have dropped, July was even worse, yet fix assets investment is up to something like %34. China requires exports for money + foreign investment. But its exports market is dropping each month. It's SME's have dropped in energy usage by %50, its domestic economy has not picked up.

The only reason its GDP is up so high is the stimulus going into infrastructure/government spending and the speculation on the property, stock market and commodities market. China's M2 supply is around 28.5% up this year, so it's pretty clear they are just printing money and a lot of it is ending up in asset markets. But here is the crunch, it can't maintain this lose money policy because inflation will pick up later this year in China. The last thing the CCP in China wants is around 800 million poor people that are already struggling to then put up with high prices for food and other daily essentials.

Yesterday did not look good for the Shanghai index, 4.7% drop. If there is a run on this market it will also affect the property market which will hurt Hong Kong as well where as far as I know GMG has property. I also think CIC share value may drop if there is a bear run in China's markets.

If you are day trading then GMG is most likely a good buy/sell. If you are in it for the long run then I would wait for a while as its value will most likely drop.