Vincent Fernando, CFA
May 18, 2010
China’s Shanghai Composite Index has been hitting quite a few air pockets over the last few months, roughly every time there was a housing-market related scare. While housing and Chinese market bears might sound like broken records, the most recent drop on Monday was the worst so far as shown by this Chart from China Daily:
Today Shanghai rebounded, but the index has been clearly trending downwards as government tightening measures for the property market have increased and news of faltering housing transactions has mounted. The most recent bad news for China property, and thus the Chinese stock market, has been a 35% year over year, and 14% month on month, drop in Guangzhou’s April property transactions.
This article was posted: Tuesday, May 18, 2010 at 3:59 am