People with
investments in China may be reassured to hear that a
stock market analyst has predicted
share prices to remain buoyant in 2007.
Christian Deseglise, global head of emerging markets business at
HSBC Investments, made the prediction in a wide-ranging performance
review of the Chinese investments sector.
According to figures cited by Mr Deseglise, the
equity market increased by a total of 83 per cent during 2006
in dollar terms.
And he has warned that there may be some fluctuations in share
prices as a result of short-term profit taking.
However, he claimed that in the longer term, many
investments analysts expect China to offer attractive
returns.
Recently released macro data and leading indicators such as
fixed-asset
investment, consumption growth rates and the credit/money
supply suggest that China's economic growth will remain
healthy, he said.
China was one of six countries engaged in multi-lateral talks this
week to address the issue of North Korea's nuclear
ambitions.
Following the talks, North Korea announced that it will take steps
to disband its nuclear complex at Yongbyon, in return for 50,000
tonnes of fuel oil or an equivalent amount of
financial or humanitarian support.
The announcement raises the possibility of increased political
stability in the region, which might reassure people who hold
substantial Chinese investments.
