(1888PressRelease)
October 26, 2009 - With China's economy slowing, many have been talking about a second global recession begun by a Chinese bear market. Leading investment management service Zetland Financial Group believes that the talk is completely unfounded, and should not destroy newfound confidence in the global market.
Several signs point to a current bear market in China, according to offshore investment business experts:
•The losses in the Shanghai Composite Index which hit a three month low recently
•The impact of this slump on investor confidence throughout the region
•Shanghai's index dropped below its 125 day moving average
•Bank of China shares dropped recently by 3.9%, and effected a 1.8% drop on Hong Kong's Hang Seng
However, Jason Weatherhead of Zetland says that the current slump in the Chinese market will not necessarily impact the global one. "Foreigners can’t trade Chinese shares, so the value of the market there has no impact on offshore investment businesses elsewhere", said Mr Weatherhead.
"More importantly, the current slump is part of a natural correction do to over-valuation in Shanghai compared to Hong Kong stocks and ADRs, after the government ordered banks to release an enormous amount of money. Real world performance hasn't been impacted, but an unrealistic pricing in previous months has", Mr Weatherhead continued.
China's impact on the world economy has mostly been in terms of creating demand for consumables, including construction materials and raw products. However, the share market in the country is generally seen to have minimal impact outside it, according to top business consultancy services.
About Zetland Financial Group:
The Zetland Financial Group - http://www.zetland.biz - provides the offshore investor with fiduciary Services, investment management and corporate advisory services, offering personal service and professional advice with total confidentiality.
For more information please contact:
Jason Weatherhead
Zetland Fiduciary Group
Email: jason ( @ ) zetland dot biz
Website:
http://www.zetland.biz ###
