Featured in Gene Linn’s China Weekly Roundup on EQUITIES Magazine Website
Gene Linn’s latest post, ”Money to Burn”, provides information from material from Linn’s recent interviews with Hong Kong stock company analysts. There are no attributions on this topic, as requested.
Linn explains: Hong Kong is no stranger to extravagance but brokerage executives are a bit taken aback by the amount of money going into Hong Kong from China’s massive economic stimulus plan. Though even an eye-popping amount may be only a fraction of the colossal plan, the penchant to divert the funds to stock and property threatens asset bubbles that could put China stocks in reverse.
China allocated $586 billion in November 2008 for an economic stimulus program to counter the global recession. One analyst notates, “I think the economic stimulus is not working well. Its causing asset bubbles and a lot of money is going into equities and property, not making the economy grow." While some extravagance may enrich property developers, many analysts currently fear the harmful effects of excess stimulus money driving up equities in China.
To continue reading this post and to read more of Gene Linn’s China Weekly Roundup, click here.
About Gene Linn:
After studying Chinese language in the Army, Gene Linn earned Bachelor’s Degree in journalism and a Master’s in East Asian Studies, focusing on Chinese language and politics. He worked for 14 years as a freelance business reporter in Hong Kong. One of his jobs was to write daily Hong Kong stock market reports for UPI for four years. He started writing a column on China-related stocks for EQUITIES Magazine in 2004.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
