tag:blogger.com,1999:blog-8382651243381952237.post1338789460333661509..comments2023-10-14T15:17:52.903+08:00Comments on Shenzhen Undercover: Chinese Stocks Bounce BackMike Baihttp://www.blogger.com/profile/10068341672299379597noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8382651243381952237.post-19417536115752139902007-03-05T04:45:00.000+08:002007-03-05T04:45:00.000+08:00No no, let's not get my comment twisted. I didn't ...No no, let's not get my comment twisted. I didn't say that the 400 point drop was caused by any selling of US treasury bonds or devaluation of currency.<BR/><BR/>US debt is intimately tied to China and Japan. That is a fact. You were absolutely correct when we talked and you said that China is not well understood by American investors. The 9+% downturn of the Chinese stock market created a spike in uncertainty about the Chinese stock market. The US stock market is absolutely controlled by speculation and future valuation; if the US stock slide showed anything, it was that American investors recognize the importance of a stable Chinese market. It also showed that Americans and the Chinese didn't learn much from previous US stock market crashes and bank runs, they saw the downturn and ran to sell. Where is the self control? <BR/><BR/>China's economy is going to get stronger and stronger. The Chinese stock market may not double again like last year, but it will march forward.<BR/><BR/>However, America should be weary about having one country paying for so much of its debt. It is difficult for me to see America "diversifying its portfolio" of debt holders, as the Bush administration has left a bad taste in a lot of foreign nations' mouths. A bad taste that is easily cleansed by a better tasting Euro.Wanghttps://www.blogger.com/profile/14732829294553674517noreply@blogger.com