"Those silly enough to believe that China's economy has "recovered" should at least been given some pause by this week's events. For China surprised the market with moves to reduce liquidity in the banking system and curb the property market. Clearly, the government is worried about the re-appearance of bubbles due to excessive credit growth. And they should be worried because it's obvious that the bubbles which caused China's slowdown never went away. In fact, they've gotten worse from government stimulus designed to prevent a hard economic landing. These government actions have made the chances of an imminent China crash more likely."
GBG Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
