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Is China Still Safe for Investors? [Copy link] 中文

Rank: 4

Post time 2013-6-8 10:28:59 |Display all floors
Is China Still Safe for Investors?
By Dan Carroll
June 7, 2013

http://www.fool.com/investing/ge ... -for-investors.aspx

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Post time 2013-6-8 16:14:05 |Display all floors
So, what's really up there?

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Post time 2013-6-8 16:18:26 |Display all floors
Many people tell that if you want to get to know what's really going on the economy,you'd better go to see stock market performance,where share prices of major state mainstay corporations have c-o-ll-opsed for long time, and almost become tr-ashes nowadays.

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Post time 2013-6-8 22:49:22 |Display all floors
Many people tell that if you want to get to know what's really going on the economy,you'd better go to see stock market performance,where share prices of major state mainstay corporations have c-o-ll-opsed for long time, and almost become tr-ashes nowadays.


That might be true if you have efficient financial markets, but China's financial markets do not reflect its economy. 80 Percent of China's economy are controlled by foreign corporations or SOEs, whilst a vast share of the remaining 20 percent are independent, small enterprises - thus, the stock markets don't say much about the economic development.

I'd simply look at China's trading statistics (but verify it with the statistics of its trading partners). How much is China exporting, how much is it importing, esp. how much oil is shipped there? That gives you quite a good glimpse about the direction in which the economy is heading. But be aware, that this is a short- to mid-termed perspective.

For the long term, one should still keep in mind that there are still 1.3 billion people living in China - and if those people someday manage to produce only one fifth of what Westerners produce, China will overtake the US as the world's largest economy.

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Post time 2017-8-22 21:49:51 |Display all floors
Depends on which sector of the economy one wishes to invest in over the longhaul,

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