The bubble in China domestic commodity market

We just see another bubble building up in China, aka the domestic commodity market.  On April 21st, led by bellwether Rebar Steel futures, other 7 commodities were lifted to the up limit (5% to 7%), including iron ore, HRC steel, met coal, asphalt, methanol, cotton, and egg (yes, it’s egg! No one has idea why… Read More »

China manufacturing PMI disappointed but indicates better expectation

China’s NBS manufacturing PMI disappointed at 49.0 in February, extending a seven-month contraction and touching a seven-year low (Consensus: 49.4). The decline was led by a moderation in new orders (48.6, previous: 49.5) and production (50.2, previous: 51.4). The disappointing PMI reading was also accompanied by a deterioration in employment conditions (47.6, previous: 47.8) and the import index… Read More »

The China house bubble and the leverage behind

The home price in China’s tier one cities (Beijing, Shanghai, Guangzhou and Shenzhen) started another around of rally in the last couple months, and became “crazy” in Feb as described by the Chinese who form lines to buy the apartments everywhere.  When I saw this online commercial as below, I cannot help asking myself: Really? … Read More »

How to drink well with Chinese

Well, this topic is not purely about economy or finance, but if you want to do business well in China then you have learn how to drink well with local Chinese.  Here are the tips: 1. Lower Your Glass It’s a social custom that you lower your glass when cheers-ing people you respect. However, it’s… Read More »

One industry sees magnificent growth in a slowing China

While the majority of China’s industrial related sectors are slowing in the last couple years, some sub-sectors within the consumption sector still experience very strong growth.  The China film industry is one of the strongest growth stories there.  In the just past China Lunar New Year holidays (2.7-2.13), the China movie box office surged 65.8%… Read More »

Finally, China’s Alan Greenspan speaks out

Finally, China’s Alan Greenspan, Mr. Zhou Xiaochuan speaks out in an interview with Caixin Magzine.  The market has been waiting for his comment on Yuan since the RMB exchange rate reform in Aug 2015.  However, he has been hiding and did not “give a clear message” as asked by IMF chief Lagarde.  Just before the… Read More »

The bugs of A share’s circuit breaks

It’s the second market halt in China A Share within a week, and finally CSRC decides to “suspend” the circuit breakers mechanism.  The Commission still claims “it will conscientiously sum up experiences and lessons and solicit opinions from all sides, and constantly improve the mechanism.”  However, in China’s official language, it means the mechanism is… Read More »

China A share crashes and here’s why

Well, I don’t expect my first post to be a story about a big sell-off in the China A share market.  But anyway, the reality is brutal.  All the major A share markets closed early today as the blue chip index, CSI 300 Index, fell more than 7% and triggered the stock market circuit breaker… Read More »