Filed under: current affairs
The Economist – 24/08/07 (more…)
Filed under: current affairs
The Economist – 17/08/07 (more…)
Filed under: investments/finance/economics
Personal notes from Jim Cramer’s Mad Money (more…)
Filed under: current affairs
The Economist – 10/08/07 (more…)
Filed under: investments/finance/economics
Personal notes from From Wall Street to the Great Wall – How to Invest in China by Jonathan Worrall and Peter O’Shea (more…)
06/08/07
The STI dropped 3.7% today while I was at my inauguration ceremony. I was already feeling a bit uneasy about not being able to check out my portfolio at the start of the week and I rushed home the moment everything was over and done with. A little bit of worry was simmering somewhere in the recesses of my heart throughout the day and I had a hunch that today would be different; my premonitions were justified when I opened my Shareinvestor account to check my portfolio. Most surprisingly bank stocks fell and this might be an indication of changing investor sentiments. Subprime was always a possible banana peel but I never thought it will be so bad that it can affect Asian markets. However there are worries that Singaporean banks own a substantial amount of CDOs and that the subprime debacle will hurt them.
My question is why Chinese stocks listed on the SGX fell, together with a whole bunch of Singaporean counters which have no easily deduced relation with bank stocks. Fundamentals have not changed but prices are falling. Is this the start of a sustained fall? I am quite doubtful.
On a brighter note, I found a fabulous source of economic, financial and business data. Borrowing Jim Cramer’s pet expression, BOOOYAAAAHHH!
Filed under: current affairs
Business Times – 06/08/07
S’pore shares plunge 3.7%
OCBC sees no big impact from CDO exposure
Filed under: investments/finance/economics
Personal notes from Peter L. Bernstein’s Capital Ideas Evolving (more…)
Filed under: investments/finance/economics
Personal notes from Jim Cramer’s Real Money (more…)
Filed under: current affairs
The Economist – 28/07/07 (more…)
Filed under: current affairs
Business Times 03/08/07 – Top retailers in Singapore and the region
Filed under: current affairs
Succinct article on the yuan, covering the major concerns and points. I have posted the article but I shall summarise the article in point form below:
- China is seeking to exit the yuan peg through a two-prong approach.
- China is gradually moving towards a flexible exchange rate, but eschews revaluations.
- Stability is a priority as opposed to great changes.
- China’s problem today is of excess liquidity and economic imbalances due to forex buildup.
- However, China is stronger today in terms of economic resilience. The banking industry is stronger after reform, the labour industry is more robust with industries moving up the value chain and a more efficient private sector after structural changes.
- The benefits of a cheap yuan has been eroding. The cheap yuan has induced a concentration on exports in the economy and this goes against the government’s plans to boost domestic demand and reduce external risks.
- The rigid yuan also attracts speculators, betting on its appreciation. The hot money inflow distorts capital allocation, generates excessive liquidity in the domestic financial system, boosts asset-price inflation and risks broader price inflation.
