Tuesday 29 May 2007
Politicizing China's stock market bubble
The ATtimes says that in China, nearly everything can be easily politicized. The stock markets are no exception. As the stock-market bubble continues to inflate, some people are now tempted to make political interpretations.
According to one theory, what keeps the retail investors and speculators bullish is their belief that the government won't take harsh measures to prick the bubble before or shortly after the 17th National Congress of the Chinese Communist Party (CCP) in the autumn, because Beijing wants to see people smiling during the all-important meeting of the party elite. On the other hand, a market crash would mean a big loss of face for the party, and in that case heads would roll, as some officials would be held responsible.
More here
According to one theory, what keeps the retail investors and speculators bullish is their belief that the government won't take harsh measures to prick the bubble before or shortly after the 17th National Congress of the Chinese Communist Party (CCP) in the autumn, because Beijing wants to see people smiling during the all-important meeting of the party elite. On the other hand, a market crash would mean a big loss of face for the party, and in that case heads would roll, as some officials would be held responsible.
More here
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