China's Debt_ BIG BAD CHINA [CHARTS]

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BIG BAD CHINA [CHARTS]

By Guest Post on January 10, 2016 8:18 pm in Business

By Shane Obata and Richardson GMP



It seems as though every day we are inundated with news out of China. Investors are already concerned. The offshore renminbi (CNH) is more international than the onshore one (CNY), which is tightly managed by the government. As such, the rising spread (CNH-CNY) between the two may be indicative of mounting skepticism about China’s economy and its markets. Likewise, capital is fleeing the country as hot money flows have accelerated:





In the following sections we will attempt to analyze China and to determine its biggest risks. Lastly, we will try to answer the following question: does it matter to us?

Markets

As the first week of trading in 2016 came to and end, the Chinese markets had already been halted twice. Newly minted circuit breakers, which have since been suspended, were triggered as the CSI 300, China’s main equity index, fell 7% on two separate occasions. The first catalyst was a rumor that the regulators were going to suspend a short sale ban that has kept a reported ~$185 billion off the market. Subsequently, they decided to extend the ban in order to calm the markets. The second driver was a significant devaluation of yuan by the People’s Bank of China (PBOC). China has also backtracked on that move. Basically, the Chinese markets are confusing…

That said, the volatility is not surprising considering how unsophisticated China’s market is. One university study found that 2/3 of the new investors at the end of 2014 did not have a high school diploma:

 READ MORE: http://www.valuewalk.com/2016/01/big-bad-china-charts/

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Chân thành cám ơn Quý Anh Chị ghé thăm "conbenho Nguyễn Hoài Trang Blog".
Xin được lắng nghe ý kiến chia sẻ của Quý Anh Chị trực tiếp tại Diễn Đàn Paltalk: 1Latdo Tapdoan Vietgian CSVN Phanquoc Bannuoc . 
Kính chúc Sức Khỏe Quý Anh Chị . 



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