Hong Kong and China shares extended their decline on Monday morning as banks, energy and property counters pulled the benchmark indexes close to strong near-term supports.Hang Seng at its lowest in three months. Shanghai Composite down to a 4 1/2 month low. Annual inflation rate in June may be 6%.
If you haven't been following the saga of Muddy Waters it makes for a fun read. This recent decline feels connected to Sino-Forest's collapse and a broader market realization of what a house of cards China's economy is. All this market has is sentiment. Muddy Waters is taking that away.
Also, Lending comes in well below analysts estimates and last year's numbers.
Loans were 551.6 billion yuan ($85 billion), less than the 650 billion yuan median estimate in a Bloomberg News survey of 20 economists and 639 billion yuan a year earlier. M2, the broadest measure of money supply, rose 15.1 percent, the People’s Bank of China said on its website.
New money supply growth fell to its lowest level since Lehman Brothers collapsed.
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