Will China's bubble burst? Overconfident markets ring alarm bells
Article Abstract:
Analysts are concerned that the Chinese stock market may have finally reached its limits and are warning of a sudden correction in prices or an unexpected crash similar to the Black Monday of 1987. Share prices of the market have continually improved in the first quarter of 1997 and investors are seemingly unconvinced that anything could go wrong. The risks of investing in the market and the country's economic recovery are compounded by the tensions surrounding the reunification of Hong Kong and the 15th Communist Party Congress which are underway.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Country ignores Asian lessons as economic risks mount
Article Abstract:
The Chinese government appears to be unalarmed with the current financial and stock market crises in Asia, as government officials do little to restructure the country's commercial and banking industries. Sources reveal that majority of Chinese banks are virtually bankrupt and less than half of the total number of government-owned companies are unprofitable. Despite these conditions, financial officials continue to neglect the rising rate of nonperforming loans and resist the recapitalization of banks.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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China's politics, inaccurate methods hinder statistical analysis of economy
Article Abstract:
An accurate statistical analysis of the Chinese economy is hampered by a questionable reporting system, which is traced to exaggerated reporting and the practice of using current instead of inflation-adjusted rates. While its figures for foreign reserves, cash in the bank and international trade are generally conclusive, inflation and production statistics are regarded as suspicious by some economists.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1995
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