I was wondering when we would cross the line to make this official: China’s markets are off more than 20%:
“China’s accelerating inflation and surging house prices are adding pressure on policy makers to raise interest rates and allow yuan gains even as their concerns over Europe’s debt woes persist.
Property prices rose at a record pace in April, consumer prices climbed at the fastest rate in 18 months and new lending exceeded the forecasts of all 24 economists surveyed, figures showed yesterday.
China’s stocks dropped yesterday, sending the benchmark index into a bear market, on concern the government will raise borrowing costs and unveil more measures to cool the housing market. The central bank highlighted risks to price stability in a report on May 10 even as it pointed to added uncertainty over a global recovery triggered by the euro zone debt crisis.”
Discuss . . .
China’s Bubble Risk Adds Tightening Pressure Amid Debt Crisis
Kevin Hamlin, Li Yanping, Jay Wang
Bloomberg, May 12 2010