Don’t be fooled by false signs of economic recovery. It’s just the lull before the storm.

The A-share market is collapsing again, like many times before. It takes numerous government policies and “expert” opinions to entice ignorant retail investors into the market but just a few days to send them packing. As greed has the upper hand in Chinese society, the same story repeats itself time and again.

...

This bubble will truly burst in the fourth quarter when the economy shows signs of slowing again. Land prices will start to decline, which is of more concern than the collapse of the stock market, as local governments depend on land sales for revenue. The present economic “recovery” began in February as inventories were restocked and was pushed up by the spillover from the asset market revival. These two factors cannot be sustained beyond the third quarter. When the market sees the second dip looming, panic will be more intense and thorough.

It's an interesting read from the South China Morning Post. Just think I posted something from the future! (hahaha, need a little humor with all the depressing posts)

Although the article doesnt jive with what I personally believe will happen with the markets in the United States, it shows that our situation isnt very well hidden from foreign investors.

Read the entire article here: Rithol tz

[edit on 8/24/2009 by Tentickles]

Well I posted this at 2am so I guess no one was on then...

Indeed, I was fast asleep at 2am this morning.
Thanks for bump though, it's a good read.

I tend to think China will emerge as the strongest economy of the world over the long term. It makes alot of sense to keep an eye and ear on what you hear coming from those folks. I don't understand the signifigance of increased selling of A shares. Is this a way of tracking insider selling because that is increasing now in the US from what i've seen. There are alot of reasons for this in my opinion , for one there was alot of insider buying in March and April , maybe they're just reallocating now. I don't think your likely to see a drop in the markets now until the hedge funds and mutual funds start to sell