On Friday, December 20, the state-run China Securities Journal reported that the main securities industry body has told brokerages to ensure their chief economists play a positive role in analyzing official policies and boosting investor confidence. If a chief economist repeatedly causes serious adverse effects owing to inappropriate comments, the employer should punish or possibly fire the person. In other words, China won’t tolerate permabears!
Instead China should just adopt US style QE. Instead arresting economists or forcing them to write “rosy” reports are not going to help.
From my REIT-days, I have moved away from Hotels. They are very sensitive to economy. The fortunes fluctuate very quickly. Hotels are one day rentals and on top of that, real estate is still in trouble in China. Having said that, the breakout looks promising. Recently the company expanded its hotels network, which may or may not be the reason behind the breakout.
Markets are forcing Chinese regulators hands… Chinese treasuries yields are going down so rapidly, now the central bank is thinking about cutting interest rates. While interest rate cut will help the economy, but China is still doing only half-measures.
