Five more reasons to be worried about China
Posted on March 1, 2007 by Richard Beddard
Filed Under Investing |
When Ceri Jones filed Market report: China Crisis last Friday, she could hardly have thought that one of the risks she identified, astronomical valuations on the Shanghai bourse, would be demonstrated in dramatic fashion days later. On Tuesday Shanghai prices dropped 9%. They fell again on Wednesday, and today. Here are five more risks she identified:
- Construction of new infrastructure is outstripping demand
- Inadequate financial reporting by companies
- The Chinese central bank is reining in lending
- Increasing regulation of western businesses in China
- Cooling consumer spending in the US.
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Category: Investing
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[...] I see the many articles discussing the risks of investing in China, like this list at Interactive Investor Blog, my immediate reaction is, why not invest in [...]
[...] with a focus on tech, mid-cap pharma, telecoms and media). Earlier this week, he picked up on our cautionary note on China to suggest investors try India. Given where he lives, and what he does, it’s worth a [...]