China's economy, a bubble?

China's economy, a bubble?
Jun 10, 2007 22:21
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	Recently, China's stock market becomes hot. More and more people are investing in stock market and make good profits. However, after the government raised the stamp tax, it droped a little. Now, it recovers again. Some people said that it is not a good omen.It is just a bubble. One day it will break. If it goes on like this day by day, oneday it will drop and more people will lose their money. Li Jiacheng once said that those investors should be reasonable toward the stock market. People comment that China's economy is developing too fast. According to the statistics, China's GDP grew by 11.1% in the first quarter, 0.7% points higher than the same peroid last year. The World Bank raised its forecast on China's GDP growth this year from 9.6% to 10.4 %. How do you think of China's economy, a bubble or not? Looking forward to your views.

Jun 10, 2007 22:21

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

Recently, China's stock market becomes hot. More and more people are investing in stock market and make good profits. However, after the government raised the stamp tax, it droped a little. Now, it recovers again.

Some people said that it is not a good omen.It is just a bubble. One day it will break. If it goes on like this day by day, oneday it will drop and more people will lose their money. Li Jiacheng once said that those investors should be reasonable toward the stock market.

People comment that China's economy is developing too fast. According to the statistics, China's GDP grew by 11.1% in the first quarter, 0.7% points higher than the same peroid last year. The World Bank raised its forecast on China's GDP growth this year from 9.6% to 10.4 %.

How do you think of China's economy, a bubble or not? Looking forward to your views.

Jun 10, 2007 22:45	#1
LEONARDO Points: Join Date: May 21, 2007 Status: Offline	Glad to see that China's economy is experience a robust growth. but, the economy shouldn't be overheated, especially, the bubble growth would be a potential threat to the economic stability. Just think of the US of 1920s, behind the bubble prosperity hides the great depression.China's economy needs soft-landing.

Jun 11, 2007 01:07

CHRISWAUGHBJ
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Join Date: Feb 26, 2007
Status: Offline

Well, I don't know about the economy as a whole, but certain sectors, the obvious examples being real estate and the stock market, are definitely in a bubble.

It's odd, and difficult. China's economy needs robust growth, but it needs said growth to be sustainable, and I mean sustainable in every way: economically, environmentally, socially, politically.... I don't envy the people who have to make the decisions about the economy. Another odd thing is that I don't think you could say the economy as a whole is in a bubble. Certain sectors, yes, but not the whole economy. China's just too big and complicated for that. I think China's economy should be compared to the economy of all of Europe, not to the economy of any other country. I'm not sure where I'm going with this, but....

....Even if I had enough money, I'd be steering well clear of the real estate and stock markets for the time being. It looks like there's going to be a very messy bursting of bubbles in the not too distant future.

Jun 11, 2007 01:27	#3
MAY001 Points: Join Date: Sep 28, 2005 Status: Offline	"Even if I had enough money, I'd be steering well clear of the real estate and stock markets for the time being. " I agree!! The real estate and stock markets are crazy now

Jun 11, 2007 04:28	#4
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	Yes, the shares can not always be rising. One day it will be down.

Jun 11, 2007 14:53

GRIZ326
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Join Date: Jun 12, 2006
Status: Offline

My father said to me many years ago that as an American you have to believe in the economy and with that he invested heavily in the stock market and real estate.

His reasoning was simple: "If the economy comes crashing down we'll all be in hot water -- if not -- my faith in the country is rewarded."

I believe the same logic applies to the Chinese in China. Over time having faith in your country will bring you great rewards.

I cannot imagine that China's economy is a "flash in the pan." I believe the greater challenges for China center around how to create a harmonious society amid the greed and social classes that will certainly emerge.

Jun 11, 2007 21:07	#6
ZOEY Points: Join Date: Nov 29, 2004 Status: Offline	Leonardo. Can you explain what is Soft-landing? The more ricks, the more you get. That is the stork market. Remember to be cautious and calm.

Jun 12, 2007 22:38	#7
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: Offline	Soft-landing is used to describe the changing process of national economy. On the other hand, there is anothe phrase Hard-landing. Both of them have the same functions. Hard-landing is used to describe the radical changes in national economy. On contrary, soft-landing mild changes.

Jun 14, 2007 00:31	#8
CHRISWAUGHBJ Points: Join Date: Feb 26, 2007 Status: Offline	Griz, I don't think China's economy is 'flash in the pan', and I agree that people must have faith, but faith must be tempered with reason. Personally, I'm waiting it out. Let the 'corrections' happen to the real estate and stock markets, and when those sectors are back to normal, investing in them will be a good idea.

Jun 14, 2007 23:21	#9
KATRINA Points: Join Date: Nov 29, 2004 Status: Offline	Well, the government has made some corrections. However, they did not take effect. Stamp tax has been raised but the stock market is still rising.

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