What’s Really Happening in the Chinese Economy?
The Shocking Secret Behind China’s Economy
Last week the Chinese stock market, represented by the Shanghai Composite Index, jumped a massive 4.3% in one day on heavy volume, as investor sentiment soared on the belief that the Chinese economy is beginning to recover. (Source: “China Stocks Jump Most Since 2009 on Support Speculation,” Bloomberg, December 14, 2012.)
There were also indications that the government is going to allow more institutions to purchase equities outright. This followed a better-than-expected Purchasing Managers’ Index (PMI), developed by Markit Group Limited, of 50.9, compared to November’s reading of 50.5. (Source: “China Stocks Jump Most Since 2009 on Support Speculation,” Bloomberg, December 14, 2012.)