China Stock Market: May 1, 2008

China economic news

China banks are beginning to fail. The real estate market is beginning to collapse. Is this the sign of impending doom for the Chinese economy?! I don't think so. There are several government mandated prevention techniques being used, and during the past few months the mandates stopped China real estate from continuing to spiral upwards. For banking sectors there are also techniques in place to help stop inflation and from total bank collapse from bad loans. That doesn't mean there won't be a LOT of trouble in the Chinese economy, but it does mean that there are most likely more safeguards in place in China than there have been in the USA.