Excess Demand in China's Equity
Since its nine-percent correction in late February, the Shanghai A-share equities have now moved back up more than 40 percent. How long this rise can last? How sustainable is the excess demand for China's equity?
Can we assume that all economical agents have the same perfect information all the way into the infinite future, and that the current excess demand corresponds to a sustainable and intense shift from liquid investment positions towards positive expectations for China's industry?
Or should we ask : who is really driving the Chinese market, which has quadrupled in value in two years?
To go further
Can we assume that all economical agents have the same perfect information all the way into the infinite future, and that the current excess demand corresponds to a sustainable and intense shift from liquid investment positions towards positive expectations for China's industry?
Or should we ask : who is really driving the Chinese market, which has quadrupled in value in two years?
To go further
Elusive forces drive Chinese stock boom
By Geoff Dyer
Financial Times: May 17 2007 17:53
By Geoff Dyer
Financial Times: May 17 2007 17:53
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