Archive for June, 2011
File not found. Hong Kong: Monetary Statistics For May 2011
The latest monetary statistics suggest a relatively stable monetary environment as for May 2011.
Greece’s Parliament Passed The Crucial Austerity Vote
The Greek Parliament just passed th €28 billion medium-term austerity plan, which paves way for the next tranche of €12 billion bailout.
China’s Local Governments Really Want To Default On Their Debts
A Shanghai government’s LGFV is now effectively seeking to default on its short-term debt by requesting its banks to extend the maturity with craps as collateral.
Greek Tragedy: Ahead Of The Crucial Vote
Consensus is growing that the vote on austerity measures will be passed, while the French plan on voluntary roll over will probably be treated as default anyway.
Hong Kong, Real Estate. 29 June, 2011, 2:09
Hong Kong Property: Scramble To Sell?
SHKP, Cheung Kong and Hang Lung may be selling in full force within weeks, while Swire Pacific is selling one of the most valuable properties in town.
Real Estate, World. 28 June, 2011, 21:53
United States: S&P/Case-Shiller Indices Show Some Stabilisation
Housing prices appeared to have stabilised somewhat in the United States, but true recovery is still far from assured.
Déjà vu?
If one look into the history long enough, one can find precedents in the mess we are in. In fact, it may be much easier to find that than one may assume.
China’s Local Governments Want To Default On Their Debts?
There are signs that the financial strains among local governments are rising, as some of the LGFVs want to default on their debts.
Wen Jiabao: No We Can’t
Wen Jiabado now admits that inflation in China will not meet the 4% target. Tightening should be continued.
The Trillion Dollar Question (Part 2): Confusion On The China’s Local Government Debts
With the latest statistics, and if the treatment of those numbers are correct, China’s government total debt-to-GDP ratio will be close to 88%.
Greek Tragedy: The Vote, French And German Banks Negotiation, And China
Greek MPs will be voting on Austerity; German and French banks are negotiating with their governments; Wen Jiabao pledged to support Europe.
Inflation Expectation and Stock Prices
Inflation expectation is falling. So predictably, stock prices are falling as well. If this newly found relationship holds, expect lower stock prices.
China, Real Estate. 24 June, 2011, 16:11
Ronnie Chan On Moral Hazard In The China Real Estate Sector
Ronnie Chan thinks that the Chinese government has created a moral hazard for real estate developers. The solution for that is to let them fail.
Wen Jiabao: Yes We Can
Wen Jiabao wrote on the Financial Times that the government can rein in inflation without slowing growth too much.
Greek Tragedy: Investors Need To Sober Up
Investors reacted to the headline that Greece has struck a deal with EU/IMF on austerity favourably, while not realised that it was not the real deal.
More On The On-Going China Economic Slowdown
The slowdown of China continues and the risk of hard landing is rising, but the tightening remains unlikely to end anytime soon.
Economy, United States. 24 June, 2011, 2:55
Brinkmanship Over Debt Ceiling Talk
The political gridlock on the debt ceiling talk should make people worried about the prospect of the US default. The bond market isn’t bothered though.
Hong Kong, Real Estate. 23 June, 2011, 21:40
Hong Kong Property: Did You See The Crash Coming In 1997?
Very few people now believe that property prices in Hong Kong can fall. Back in 1997, it was just the same: very few saw the crash coming.
Markets, Rates and Bonds. 23 June, 2011, 5:05
China Tightening Update: Shanghai Interbank Rates Surge Even More
Short-term interbank lending rates jumped sharply in the past few days after the People’s Bank of China raised RRR.
Cross asset, Markets. 23 June, 2011, 4:33
Seriously: How Do You Value A Violin As An Investment?
The Australian Chamber Orchestra has established a fund for investors who are interested in investing in Stradivarius violins.