Chinese stocks hit by Greenspan comments


Chinese stocks hit by Greenspan comments
Chinese stocks fell by 1.5 per cent yesterday before rallying after former US Federal Reserve chairman Alan Greenspan expressed doubts about a potential "bubble" developing in the country.

The Asian giant has seen dramatic increases in capital invested in its firms in the past 12 months, which in 2007 has already seen total market value grow by 50 per cent.

Now analysts are beginning to voice concern about the market's potential for a crash if speculation gets out of hand.

Mr Greenspan predicted the Chinese market was heading for a "dramatic contraction" and said the current rate of growth was "clearly unsustainable".

The 81-year-old, who was replaced at the Federal Reserve last year by Ben Bernanke, has held a reputation as difficult to understand but his latest remarks have proved easy to interpret by investors.

The Shanghai Composite Index slipped 0.5 per cent yesterday after rallying from earlier slips of up to 1.5 per cent.

European markets have also fallen this morning. The German Dax index fell 0.63 per cent on early morning trading while the French Cac 40 lost 1.11 per cent of its value.

The FTSE 100 index was down by 0.62 per cent after the first hour of trading.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure