The Middle Kingdom takes another step on its path to global dominance:
The equity markets of China and Japan will probably leapfrog each other for another year or two given the global financial system's overall fragility. Still, China's fundamentals are relatively healthier.
China's banks have been lending a lot, and news stories like this one report loan recipients playing Chinese stocks like casino chips. I wouldn't be surprised if this frothiness leads to a big market correction in a few months . . . giving long-term China bulls like me and Jim Rogers a chance to buy.
Nota bene: Anthony J. Alfidi is long FXI with covered calls and short puts covered with cash.
China overtook Japan as the world’s second-largest stock market by value for the first time in 18 months, after government stimulus spending and record bank lending boosted share prices this year.
The equity markets of China and Japan will probably leapfrog each other for another year or two given the global financial system's overall fragility. Still, China's fundamentals are relatively healthier.
China's banks have been lending a lot, and news stories like this one report loan recipients playing Chinese stocks like casino chips. I wouldn't be surprised if this frothiness leads to a big market correction in a few months . . . giving long-term China bulls like me and Jim Rogers a chance to buy.
Nota bene: Anthony J. Alfidi is long FXI with covered calls and short puts covered with cash.
