I get a strong suspicion that too many people are too overweight in Chinese stocks now. The reason for this is that after posting the China Tax and China Labour Law changes on a number of sites, there has been absolutely no response at all on most. High profile names ignore the posts, nobody commenting at all, either pro or against.

It therefore suggests to me that lots of people are presently very overweight in China stocks, they have got caught with the market weakness, and are now holding at a loss - waiting to sell any rise.

If, and its only an "if", the market weakness continues, and more and more of these people are trapped into China plays - you can foresee, imv, a lot of weakness coming into that sector, as more and more give up and bail out.

Quite remarkable that so many got duped into buying "China" as a safety against US/EU credit fears and recessions - only to now find its not as safe as they thought, and China stocks are also falling.

My own suspicions were that the China stock dream would go into breakdown and start its fall once the 2008 Summer Olympics had passed and the government can afford the luxury of upsetting lots more people and not caring about "face" during the Olympics that the world will be watching.

Is there another boom left in them before the Olympics comes and goes ? Will the boom not happen as its sold into ? Will they all meakly fade now and continue to do so ? Will they just keep on booming and not fall back again ?

Please discuss !!

http://livenews.com.au/articles/2008/11/28/ChinaJapan_Slumping


China slumping, recession looms for Australia

28/11/2008 6:19:00 AM.

All those people who still believe Australia won't dip into recession in 2009, as the IMF, OECD, Federal Treasury and Reserve Bank predict, should think again.

China, whose 'solid' demand for our resources was supposed to help keep us out of recession in 2009, is getting worried.

So worried that it slashed interest rates Wednesday night by the biggest margin in 11 years, once again it proving that it pays to watch what central banks do, not what they say.

Bloomberg reported yesterday that a senior Chinese economic official had warned that "Some economic indicators in China showed a "faster decline" in November, the.........................full article on the link.

China in trouble........


http://www.bloomberg.com/apps/news?pid=20601087&sid=aVRGLHihqJtM&refer=home

Chinas November Manufacturing Contracts by Record

By Nipa Piboontanasawat

Dec. 1 (Bloomberg) -- Chinas manufacturing shrank by the most on record and export orders plunged, adding to evidence that recessions in the U.S., Europe and Japan are dragging down the ................

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I hate to give you the I told you so, but all those talking and ramping about "China's Domestic Demand"..........its all nonsense. Its not strong enough and not mature, and we have seen the old Commies reach for the faithful, "lets boost exports again as domestic demand is not there" with tax cuts, tax concessions, subsidies etc...

This devaluing again confirms that process is happening, and domestically they are in trouble.

China was built on corruption, all its figures are total nonsense, and anyone believing any data coming out of China about growth, employment, cash reserves etc... is being very silly.


http://www.telegraph.co.uk/finance/economics/3546471/Chinese-economy-1930s-beggar-thy-neighbour-fears-as-China-devalues.html

Last Updated: 11:13PM GMT 03 Dec 2008

1930s beggar-thy-neighbour fears as China devalues

China has begun to devalue the yuan for the first time in over a decade, raising fears that it will set off a 1930s-style race to the bottom and tip the global economy into an even deeper slump............

The central bank has shifted the central peg of its dollar band twice this week in a calculated move that suggests Beijing aims to offset the precipitous slide in Chinese manufacturing by trying to gain further export share abroad.

The futures markets are pricing in a 6pc devaluation over the next year. "This is clearly a big shift in policy and we are now on alert," said Simon Derrick, currency chief at the Bank of New York Mellon.

The move follows a Politburo speech by President Hu Jintao warning that China is "losing competitive edge in the world market"....................

http://business.smh.com.au/business/chinas-industrial-output-growth-stalls-20081215-6ys8.html


China's industrial output growth stallsDecember 15, 2008 - 3:34PM .

China's industrial production grew at the weakest pace in almost a decade as export growth collapsed, increasing pressure on the government to do more to revive a slumping economy.

Production rose 5.4% in November from a year earlier, the statistics bureau said today. None of 14 economists surveyed by Bloomberg News predicted such a small increase. Output............................

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A Chinese AIM companies bites the dust few what appears to be rather "dodgy" goings on ??????

http://www.investegate.co.uk/article.aspx?id=200812221014325813K&fe=1


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LED today suspended.

BSST today reports a poor trading update and that the Financial Crisis is having an effect in China. Bangkok system woes these must also effect GNG going forward imo.

China - 2009 ?

Looks to be just what was suspected, China has been a ramp (mostly by the ADVFN BB rampers) and its in big trouble, and those attempting to ramp most Chinese stocks have lost loads and loads as they have all crumbled.

Some interesting articles to read :


http://www.vancouversun.com/news/Shine+China+world+cheapest+factory/1103093/story.html

Shine is off China as world's cheapest factory

B.C. manufacturers do a reality check on low-cost country

By Joanne Lee-YoungDecember 29, 2008

When Richmond-based Holey Shoes first started making its signature clogs in 2002, it used a manufacturer in Quebec. But as its foamy, colourful shoes became ..................

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http://en.epochtimes.com/n2/content/view/9346/

Part 1

China’s Economy Is in a Deep Freeze and Unable to Recover (Part I) By Cheng Xiaonong

Sound of Hope Dec 29, 2008

The following is Part I of Dr. Cheng Xiaonong’s report regarding China’s economy, broadcast on Sound of Hope Radio on December 17. Dr. Cheng was a former advisor to China’s past premier Zhao Ziyang. He holds a Ph.D. in sociology from Princeton, and is Editor-in-Chief of Modern China Studies.

Rich Own Majority of China’s Wealth

We mention polarized income distribution in society. The government, by all means, protects a small group of privileged people so................


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http://en.epochtimes.com/n2/content/view/9485/

Part 2

China’s Economy Is in a Deep Freeze and Unable to Recover (Part I) By Cheng Xiaonong



-----------------------


Well worth reading.

http://en.ce.cn/Business/Macro-economic/200901/03/t20090103_17856844.shtml

China manufacturing shrinks for 5th month

Last Updated(Beijing Time):2009-01-03 11:32

China's manufacturing contracted for a fifth month in December as recessions in the US, Europe and Japan sapped demand for exports, a survey showed.

The CLSA China Purchasing Managers' Index stood at a seasonally adjusted 41.2, compared with a record low of 40.9 in November, CLSA Asia-Pacific Markets said on Friday in an emailed statement. A reading below 50 reflects a contraction.

Manufacturers in industries from................................


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http://news.theage.com.au/world/china-warns-economic-woes-could-trigger-major-unrest-20090107-7btj.html

China warns economic woes could trigger major unrest

January 7, 2009 - 4:58PM

China's state media has issued an unusually candid warning of the risk of mass riots this year, in what observers said Wednesday reflected increasing jitters about the global economic crisis.

Outlook magazine, an authoritative weekly published by the Xinhua news agency, said in this week's edition that the economy might become so bad in the coming months that China's social fabric could start unravelling.

"Due to deepening economic difficulties and social security problems since the second half of 2008, enterprise closedowns, layoffs and labour disputes have significantly increa...............

Yet more confirmations of what some have been trying to deny for far too long. It even appears over on the "dark side" of ADF*N that I have a few poor imitators and some of the "China ramping brigade" who have been proven so very wrong are accusing almost any poster of being me...... :) How quaint. For the record, the "quality" of the BB's of that place has gone so downhill IMO that I do not post there anymore, under any name, regardless of what a hysteric small proportion may try to mislead people with.




http://news.bbc.co.uk/2/hi/business/7825573.stm
Page last updated at 05:20 GMT, Tuesday, 13 January 2009

China's exports in record decline

China's exports have dropped into their biggest decline in a decade.

Exports in December were down 2.8% from the same time last year, a bigger decline than November's 2.2% drop, the China Daily said.

The numbers provided fresh evidence of a serious trade slump that has caused a wave of factory closures and staff layoffs, analysts said.

The communist leadership has expressed fears of social unrest as economic problems worsen.

The BBC's correspondent in ............................................

Couple more new articles.

The most interesting thing, for me, as I have said before, is that China cannot afford for property prices to fall, so much corruption has gone on in construction and bank loans, that if property were to collapse in price, then the effect would be far worse than is being seen in the USA.

Interesting times in 2009.


http://www.financialpost.com/story.html?id=1168575

Weaker economy chops China's home prices
Duncan Mavin in Hong Kong, Financial Post
Published: Monday, January 12, 2009

HONG KONG - Shenzhen in Southern China has been a potent symbol of the country's rapid economic growth over the past three decades. Now it is also home to some of the sharpest effects of the country's economic slowdown, including, according to a report.................


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http://www.time.com/time/business/article/0,8599,1871014,00.html?imw=Y

The Last Pillar of the Chinese Economy Falls
By 24/7 Wall St. Monday, Jan. 12, 2009

The way in which the Chinese GDP was going to roll forward to become the No. 1 economy in the world was relatively simple. An expanding global need for cheap goods would drive a massive export machine. An expanding middle-class would become rabid co................


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http://www.telegraph.co.uk/news/4240202/China-warns-against-protest-as-unemployment-rises.html

China warns against protest as unemployment rises

Fears of mass unemployment and social unrest in China have prompted the Communist Party to issue a stern warning over protests.

By Richard Spencer in Beijing and Malcolm Moore in Shanghai

Last Updated: 5:09PM GMT 14 Jan 2009

Protester in China Government leaders are promising tough measures against demonstrations and corruption as the world's fastest growing economy faces its worst crisis for a decade.................


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http://www.abc.net.au/news/stories/2009/01/14/2466048.htm?section=justin

Dissident warns unemployment fuelling Chinese discontent

Posted Wed Jan 14, 2009 4:02pm AEDT

The Chinese Government risks collapsing under the economic downturn, stuck between helping the rich and risking a rebellion or backing the poor and risking a coup, a leading dissident says.

Wei Jingsheng warned in an article in Britain's Times newspaper that the economic crisis was fuelling growing discontent across China, among both the poor - 300 million live on less than a dollar a day - and the super-rich.

"The Chinese government is trapped............................

An interesting read :

http://www.theaustralian.news.com.au/business/story/0,28124,24922215-18544,00.html

Piggyback ride over as China's growth engine stalls - Rowan Callick

January 17, 2009 Article from: The Australian

AUSTRALIA can't count on China to drag us out of our economic woes this year, for it is now becoming clear that China is in double trouble itself.

It is not just the global downturn, which is slashing export orders. There is also a home-grown hole, caused by the failure of its leaders to act on their rhetoric and broaden the economic base during the decade-long double-digit boom that...........

http://www.economist.com/world/international/displaystory.cfm?story_id=12948617

China's trade

Surplus to requirements
Jan 15th 2009 | HONG KONG
From The Economist print edition

Why is Chinas trade surplus growing when its exports have collapsed?


THIS week revised figures revealed that China overtook Germany in 2007 to become the worlds third-biggest economy. At the start of last year China also looked set to become the worlds biggest exporter, but a slump in exports in the final months of the year meant they remained smaller than Germanys. Chinas exports tumbled by 13% (in dollar terms) in the fourth quarter, leaving them 3% lower in December than a year

http://www.mg.co.za/article/2009-01-24-china-warns-of-economic-distress-and-longterm-ills

China warns of economic distress and long-term ills

BEIJING, CHINA Jan 24 2009 08:05

China must do more to ease public distress as it battles a slowing economy and rising unemployment, a leadership meeting said, warning officials the global slowdown was colliding with the nation's reckless mode of growth.

The warning came from a meeting on Friday of the ruling Communist Party's Politburo, a 25-member elite council, the official People's Daily reported on Saturday.

The report from the meeting cha............................

http://www.irishtimes.com/newspaper/finance/2009/0206/1233796244298.html

Friday, February 6, 2009

China may be centre of next Great Depression

SERIOUS MONEY : As globalisation falters, the possibility of a 1930s-style meltdown cannot be dismissed

GLOBAL DECOUPLING emerged as a dominant investment theme 12 months ago among esteemed professionals as the developing world proved largely immune to the growing subprime virus in the US, enabling global growth to exceed 5 per cent in 2007, comfortably above the long-term average of 3.7 per cent.

The notion that the emerging economies of the Far East could withstand an economic recession in the western world was built primarily on the dubious logic that....................................

http://news.bbc.co.uk/2/hi/business/davos/7882816.stm

Wednesday, 11 February 2009

China's exports see sharp decline

China's exports are falling as world demand slows China's exports fell more than expected in January, down 17.5% from a year earlier, marking the biggest drop in ............

Worth a read :

http://www.nakedcapitalism.com/2009/02/china-showing-signs-of-recovery.html


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Couple of interesting reads :

http://www.chicagotribune.com/business/sns-ap-as-china-economic-jitters,0,3832634.story

Chinese officials grow quiet amid economic woes in once-booming southern region

By WILLIAM FOREMAN | Associated Press Writer
7:19 AM CST, February 27, 2009


...........The professor also wondered whether economic planners were being practical considering the ongoing financial turbulence overseas.

"Are they being realistic when looking at what's happening in the world?" Li said. "Are they using this plan as an instrument to overshadow the problems in Guangdong?"


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http://wsws.org/articles/2009/feb2009/chin-f27.shtml

China’s stimulus package threatens more economic turmoil
By John Chan
27 February 2009


...........Far from representing a new brand of "command capitalism," the Chinese regime, like capitalist governments everywhere, is powerless before the global economic meltdown. Its stimulus package to prop up the Chinese economy is fuelling new financial turmoil, economic difficulties and political tension, while offering little relief for working people. All this is creating the conditions for an eruption of political and social unrest.