Tuesday, August 30, 2011

China Investment Risks

Investing in Chinese corporations can be risky when government can run things pretty much its own one-party way.

But also, their basic economic statistics are not accurate. For example, new housing is an important statistic in China. But the official housing index, the National Bureau of Statistics, is much different and much lower, than the China Real Estate Index System.

And the difference far surpasses rises in Chinese wages, This poses the likelihood of boom-like problems. Moreover, this is an important difference because it affects the steel, cement and other basic aspects of housing construction information that analysts require.

So, investing in China poses information as well as political dangers of a controlled economic system. ( See the Earl J Weinreb NewsHole® comments.)

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