Posted on 05/13/2007 10:08:06 PM PDT by TigerLikesRooster
EMERGING MARKETS REPORT: Goldman Sachs: China At Risk Of "market Euphoria"
By Polya Lesova
NEW YORK (Dow Jones) -- China's booming A-share market could turn into a bubble if speculation among exuberant retail investors is not curbed, Goldman Sachs warned Thursday, as the Shanghai Composite Index hit yet another intraday record high.
"Market trading statistics, liquidity indicators, and anecdotal evidence all point to optimistic, if not exuberant, sentiment in the domestic market," said Thomas Deng, analyst at Goldman Sachs, in a Thursday research report.
"As speculation continues to be nurtured among domestic retail investors, we see genuine risks of market euphoria materializing if regulators fail to step up their efforts to contain market irregularities," Deng said.
Other financial firms, including UBS Securities, as well as Governor Zhou Xiaochuan of the People's Bank of China have also expressed concern in recent days about the possibility of a bubble forming in the stock market.
The Dow Jones CBN 600 index, which reflects about 80% of China's free-float market capitalization, has rallied 91.8% year-to-date.
(Excerpt) Read more at nasdaq.com ...
Ping!
“market irregularities” = corruption like you could never even imagine.
China is a Free Market economy governed by a police state.
This means rich guys bribing officials with no one to answer to, and centuries of practice paying tribute.
No way the markets can really promise any value there.
With the enormous scandal of ‘Naked Shorting’ on Wall Street there is no room for Goldman to act holier than thou to anyone.
This is the Devil telling the Dragon how ugly it is.
spaceflightnow.com
A powerful Nigerian satellite was launched by a Chinese rocket Sunday to deliver a broad assortment of communications services to customers across Africa.
NIGCOMSAT 1 is Nigeria’s first communications satellite, but the craft’s versatile payload will reach nations throughout western and southern Africa.
The launch was also a critical milestone for China’s space industry. The project marked the first time a foreign buyer purchased both a Chinese satellite and launch service, according to China’s official Xinhua news agency.
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