End of the Chinese Miracle?

TUCSON, AZ, July 23 / MARKET WIRE/ -- Think an investment in Chinese stocks makes good financial sense? Think again. The Shanghai Composite Index is down 55% since October, the worst performer of all global stock markets, and this may be only the beginning of a long-term decline. China's economy is headed for real trouble, and the 'China boom' may be in for a hard landing following the Olympic Games, attributable primarily to rising transportation costs and the economic downturn underway in China's two largest export markets: the U.S. and Europe. A recent OECD report predicts wage and price inflation will erode China's export competitiveness, stating that "coupled with ongoing weakness in external demand, exports and the pace of market share gains are projected to slow markedly." As China's export-driven economy contracts,... [read full story]