The Buy China Syndrome
Aggregated Source: China ChallengesBusinessWeek says:
Call it the Buy China syndrome. All year there has been a virtual feeding frenzy for Chinese stocks. Mainland companies have raised nearly $50 billion in share offerings on domestic exchanges in Shanghai and Shenzhen and overseas bourses in 2006.
That includes the $20 billion that Chinese mega-lender, Industrial and Commercial Bank of China (ICBC), is expected to rake in with the biggest initial public offering in history. It's selling 15% of its shares to the public and its stock will start trading on Oct. 27 (see BusinessWeek.com, 9/27/06, "China's ICBC: The World's Biggest IPO Ever").
One reason is that China's hyper-growth wave shows no signs of abating. This $2.6 trillion economy grew at a torrid 10.6% pace during the first half, and third-quarter gross domestic product data due out on Oct. 19 are expected to show 10%-plus year-on-year.
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