Friday, September 19, 2008

China's Stocks Soar

China's markets are behaving just as erratically as the US'.

From Forbes:

SHANGHAI, China - China's key stock index surged 9.5 percent Friday - its biggest one-day percentage gain ever - as investors took heart from government moves to support the markets, although most of the buying was over before noon.

The benchmark Shanghai Composite Index gained 179.25 points to 2,075.09 and stayed at that level all afternoon after many shares quickly hit the 10 percent upside daily limit.

The heaviest weighted share in the index, oil and gas producer PetroChina, jumped 8.6 to 11.04 yuan. Refiner Sinopec likewise gained 10 percent to 9.96 yuan.

"I knew it would rise, but didn't expect it to jump so high," said Zhao Yueming, a dealer at Cinda Securities, in Shanghai. "China's stock market is always crazy beyond people's expectations."

Read On
Although markets have rebounded in the last couple days, I can't imagine that this is anything but a small respite or calm before more storm.

Of course, maybe I've just been reading this blog too much and don't understand the economy as well as John McCain does.

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