No matter how much money China has, it fails to be credible in its moral authority. Until it does, it will never be respected by the free nations of the world. Case in point: see the brutal Chinese policy being enforced.
Chinese ar known for their thrift and saving,not business investors. Therefore most of savings will be put into stock market which is the only viable vehicle for the time bing. Previously they love to own and buy real estate for quick and huge profit,especially housing sector.Since intereste rate hike and restrictions imposed by Govt to cool down real estate speculation,it is getting harder to have a quick turnover for handsome profit,the bulk of money from savings will flock to stock market at higher risk,but at least stock market will be enable them to have a quick action to enter and get out in case of crisis,unlike real estate which take time to dispose of it.
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DH of LA 1:43AM October 22, 2010
Frank Chung of CA 5:20PM October 21, 2010