Thursday, May 3, 2007

Prepare for the China stock market bubble to burst

I don't know how or when - except it won't be longer than a few weeks at this rate. Local stock markets are up 75% year to date. You can be sure that as we speak, the authorities are debating the best way to do this. Unfortunately, there is no 'good way' to burst a stock market bubble. Several possibilities: capital gains tax, transaction tax, some kind of circuit breakers or daily stock price limits. Stay tuned...

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