Friday, July 31, 2009

Singaporean Anecdotes

I have been musing here on the Chinese growth miracle recently. The topic is much more deeper than just looking at the surface.

On top of the Nomura's findings of Chinese domestic fund manager survey, I got the email from Singapore over night:
Well, you know, its getting crazy here in S'pore. I mean the property market.
People are queuing overnight at new condo launches. Hundreds of people. There
is a palpable fear of being left behind in this new asset price upcycle. And this fear
is stretching across all the major Asian cities it seems. In HK, people are queuing
hours to collect IPO forms too. A recent listing (chinese cement supplier) was
oversubscribed nearly 800x.

To add fuel to the fire, there's been speculation that China will divert its excess liquidity
to the rest of Asia. Like via the QDII programme, the scheme that allows domestic
investors to invest abroad. This programme was suspended back in early '08 when the
Chinese stockmarket started to take a dive.
As every dip in markets is still viewed as an opportunity to buy, at least the verdict on confidence in Asian markets should be clear ...

1 comment:

  1. People are trying to take advantage of the current situation not realising that yes it is adding fuel to the fire, but you can see it the other way in that it will finally help to drive a more spending taht is needed in the retail sector.