August 18, 2009
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Incredible that another bloodbath is shaping up in emerging market stocks today. Especially Chinese stocks which were up big this am at the open and are falling rapidly, many are approaching going red.
Keep watch on : EDC,EDZ,FXP,FXI
Last Thursday news that China tightening Bank Credit caused Asian stocks to Fall from Bubble type gains in 2009.
"The large gains in China markets in] the first half recreated a bubble in the market, so when the government showed signs of tightening bank credit there's a selloff," said Zhang Yong, an analyst at Great Wall Securities.
The drop coincided with data showing foreign direct investment into China slumped 35.7% to $5.36 billion in July from the year-earlier period.
Foreign direct investment flows for the first seven months of the year were down 20.3% compared with a year earlier, noted Moody's Economy.com economist Sherman Chan.