Monday, December 19, 2011

China watch update

On this trip to China, people I met just like the weather -- bitter cold. They turned cautious.

Airports I went pretty much like my two months ago visit, almost empty on my way in and some life on my way out. Some still do a little bit of year end travelling but the way they dressed -- these are people who can afford to throw money at any economic conditions.

Housing was still a big topic. Stock market was still a huge topic. But not in bullish tones. These people did not think they are in the bargain level. Chinese are unique when come to anchoring, they don't anchor at the top but they anchor at the previous bottoms. If everyone waits for a bottom, it is has some way, some time, to go.

Copies of China Daily delivered to my rooms daily without fail. One headline had my attention.

BEIJING - Foreign direct investment (FDI) fell almost 10 percent last month from a year earlier, the first drop in 28 months, as Vice-Premier Li Keqiang called for a boost to domestic consumption on Thursday.

Amid the "grim and complicated" global outlook, China needs to strengthen market capacity and growth by encouraging private investment, increasing investment in affordable housing projects and accelerating urbanization, Li said.

This update is rather short. I'm badly lagging behind many of my duties. Just done shopping for coming school re-open. The school uniforms are getting very expensive. I don't think I will do more shopping for coming Christmas and New Year despite of many offers have been dangled in front of me. Just don't feel like throwing money on stuffs I don't need. I just hope for a quiet and restful holidays. I also hope to spend some time to think about 2012 -- it's certainly not a year of Four Horsemen calling like in the movie but I certainly expect to see more volatility ahead.

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