chinese economy

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Why the Chinese Economy Is Not Out of the Woods

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt - March 18, 2016

The new year started with sharp declines in the Chinese stock market that spooked investors around the world. But in recent weeks, conditions appear to have stabilized.

But the news is not all good for the Chinese economy. And one very telltale instance of the "rats leaving the sinking ship" shows you the true story...

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Why the Chinese Economy Is Not Out of the Woods

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt - March 18, 2016

The new year started with sharp declines in the Chinese stock market that spooked investors around the world. But in recent weeks, conditions appear to have stabilized.

But the news is not all good for the Chinese economy. And one very telltale instance of the "rats leaving the sinking ship" shows you the true story...

The Generational Investments to Stay Safe in This Market

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt - January 23, 2016

Stocks actually rose last week, although you'd be hard-pressed to find an investor or hedge fund manager who is feeling good about things right now.

But the Dow Jones Industrial Average did in fact gain 105 points or 0.7% to close at 16,093.53 while the S&P 500 rose by 1.4% or 27 points to 1906.90. The Nasdaq Composite Index, home of the FANGS, added 2.3% to close at 4591.18. But as the title of the novel goes, it's "been down so long it looks like up to me."

All three markets are still down sharply on the year and many hedge funds are nursing double digit losses just three weeks into the year.

George Soros: We Are Repeating 2008

By Money Morning Staff Reports, Money Morning - January 22, 2016

George Soros offered a grim prediction for the markets yesterday, likening this environment to 2008.

This time, however, he blames China's over-indebtedness as the primary factor responsible for global market woes.

Here's the Hungarian-born hedge fund manager's full warning...

How the China Yuan Devaluation Is Dragging Down the Markets

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - January 15, 2016

Countless factors influence the global financial markets, but right now the biggest one is China's yuan devaluation.

Ever since August, when the Chinese central bank shocked the markets with a steep yuan devaluation, the Chinese currency has exerted a powerful - and mostly downward - pull on stocks.

Here's why the yuan carries so much weight - and what will happen next...

Will Book Cooking in China Cause Another Market Meltdown?

By Money Morning Staff Reports, Money Morning - December 15, 2015

Provincial government officials in northeastern China admitted yesterday that they have been falsifying economic data over the past few years.

Some folks are wondering if we should brace for another market meltdown.

But one seasoned analyst has a very different take on the Red Dragon's news...

Why Chinese Interest Rates Were Slashed Again Today

By Diane Alter, Contributing Writer, Money Morning - October 23, 2015

China's central bank on Friday cut both Chinese interest rates and banks' reserve requirement ratio. It's an effort to boost China's slowing economy.

The People's Bank of China (PBOC) trimmed its benchmark lending and deposit rate by 0.25% each. They are now at 4.35% and 1.5%, respectively.

The cut in Chinese interest rates comes just days after China reported its slowest GDP growth rate since the Great Recession...

How to Profit from Chinese Tech Stocks

By Michael A. Robinson, Defense + Tech Specialist, Money Morning • @Robinson_STI - September 23, 2015

Despite the bad headlines coming out of China, it still boasts one of the globe's fastest-growing economies. And it's move to become a more consumer- and tech-focused economy puts e-commerce front and center.

So if you want to make money in tech stocks, you must aim a portion of your portfolio at Chinese e-commerce. Today I'm going to tell you about the best way to play China's renewed emphasis on e-commerce.

It's an investment that will pay out big for decades to come...

China's Inflation Is Rising – but All Eyes Are on Deflationary Risks

By Diane Alter, Contributing Writer, Money Morning - September 10, 2015

The latest data out of China today shows China’s inflation is rising. However, it’s China’s deflation risks that have everyone talking.

The National Bureau of Statics said today (Thursday) that China’s consumer price index (CPI) rose 2% year over year in August and reached a one-year high.

But that wasn't the only statistic investors are eying today...

China Stocks: Investment Strategies to Declaw the Dragon

By William Patalon III, Executive Editor, Money Morning • @privatebrief - September 4, 2015

The recent meltdown in China’s stock market has caused shockwaves that have been felt throughout the global markets. It’s the first time investors have seen this, so there’s no precedent that helps them understand what’s happening… or to know how to respond.

Until now.

Profit From the China Stock Market Crash With This Strategy

By Tara Clarke, Associate Editor, Money Morning • @TaraKateClarke - September 3, 2015

A China stock market crash this summer triggered a global sell-off. The country’s benchmark index, the Shanghai Composite, lost 12.5% in August alone. It declined a massive 37.94% (1,960.36 points) from its June 12 high through the end of August.

Investors all over the world are growing increasingly concerned – and they should be.

Watch the video to get Money Morning Capital Wave Strategist Shah Gilani’s strategy for investors to protect themselves -- and even profit -- from a China stock market crash…

Shanghai Composite Gains 5% Today as China’s Stock Market Rallies

By Kyle Anderson, Associate Editor, Money Morning • @KyleAndersonMM - August 28, 2015

The Shanghai Composite jumped 5% today (Friday), marking its second consecutive day of impressive gains. On Thursday, the Shanghai Composite climbed 5.4%.

Despite the late rally, the Shanghai Composite Index is still down 7.8% on the week and roughly 37% from the high it set in mid-June. The Shanghai Composite ended the week at 3,232.34.

Here’s why the market rebounded in the last two days…

Will China Lower Interest Rates?

By Diane Alter, Contributing Writer, Money Morning - August 26, 2015

With the Shanghai Composite tumbling 16% this week alone and rattling global markets, readers are asking us, "Will China lower interest rates?" The simple answer is that they already have.

The Shanghai Composite finished in the red today (Wednesday) for the fifth consecutive day. The index was up as much as 4% at one point, but finished the session down 1.3% to 2,927.29.

Here's why another rate cut might have little effect on steadying China's markets...

Why China's Yuan Currency Is Being Manipulated by the Government

By Diane Alter, Contributing Writer, Money Morning - August 12, 2015

In an effort to boost exports and spur growth, China's government continues to manipulate its yuan currency.

Wednesday, the PBOC cut the guiding rate for the yuan for the second consecutive day.

Here's what the manipulation of the yuan currency means for investors...

Play China's $67 Trillion Surge with This Stock

By Peter Krauth, Resource Specialist, Money Morning - July 30, 2015

Before this month's crash, Chinese markets doubled over seven months to peak at 5,166 in mid-June.

On the way up, anecdotes abounded of farmers abandoning their fields in favor of trading stocks on margin. By late June, there were more individual investors in China than the 87.8 million card-carrying members of the Communist Party of China.

And one U.S. company has become the top choice to profit from this shift...

Markets "Whistle Past the Graveyard" as Google Gains $65 Billion in Just One Day

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt - July 19, 2015

While markets decided to ignore what are destined to be doomed attempts to cover over intractable debt crises in Greece and China, the real action in the markets last week took place in two high-flying NASDAQ stocks - Netflix and Google.

Netflix stock split 7-to-1 and the company announced strong subscriber growth, pushing its stock up from a split-adjusted $98.13 on Wednesday to $114.77 at the end of the week. The 18% pop increased its market cap to $48.7 billion and its price/earnings ratio to 210x as Wall Street analysts competed with each other to raise their price targets to ever higher levels.

If you think that sounds giddy, look at what Google did...