One piece of good news that comes out of all of this is that the A-share market was up 1.48% yesterday, even though it is down 4.51% today, much of it on the back of the inflation numbers. I have noticed that the market has usually done a suspiciously good job of anticipating government figures a few hours before they are released, but this time it seems to have been caught flat-footed.
Another obvious silver lining is that high inflation has the same impact as revaluing the currency. The appreciation rate is still too slow, but the RMB's pace has effectively picked up.
Dude... I hv a frd who have told me the exact CPI number 3 times in a row, one week b4 the number is released.
One rmr behind the sell off was tat China Govenment might starting selling the stocks they are holding.
By namechane - 9/12/2007 8:34 AM
Ali, you have dashed my illusions. And here i thought there was at least one piece of information that might remain confidential before it was released.
Michael Pettis is a professor at Peking University's Guanghua School of Management, where he specializes in Chinese financial markets. He has also taught, from 2002 to 2004, at Tsinghua University’s School of Economics and Management and, from 1992 to 2001, at Columbia University’s Graduate School of Business. He is a member of the board of directors of ABC-CA Fund Management Co., a Sino-French joint venture based in Shanghai.
Pettis has worked on Wall Street in trading, capital markets, and corporate finance since 1987, when he joined the Sovereign Debt trading team at Manufacturers Hanover (now JP Morgan). Most recently, from 1996 to 2001, Pettis worked at Bear Stearns, where he was Managing Director-Principal heading the Latin American Capital Markets and the Liability Management groups. He has also worked as a partner in a merchant banking boutique that specialized in securitizing Latin American assets and at Credit Suisse First Boston, where he headed the emerging markets trading team. Besides trading and capital markets, Pettis has been involved in sovereign advisory work, including for the Mexican government on the privatization of its banking system, the Republic of Macedonia on the restructuring of its international bank debt, and the South Korean Ministry of Finance on the restructuring of the country’s commercial bank debt.
Pettis is a member of the Institute of Latin American Studies Advisory Board at Columbia University as well as the Dean’s Advisory Board at the School of Public and International Affairs. He is the author of several books, including The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (Oxford University Press, 2001). He received an MBA in Finance in 1984 and an MIA in Development Economics in 1981, both from Columbia University.
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Comments (2) for "Little insider reaction?"
January, 2008
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