Shares of Bellamy’s Australia Ltd [ASX:BAL] gained a whopping 21.44% today. Shares were trading at $13.31 at time of writing. What caused the share price increase?
The proviso of this thesis though was that there needed to be ‘an India’ to take up the slack left by China as it stalls. But what if the current slowdown is the bust? And what if China, instead of crashing, recovers and booms over the next few years? A double boost to the global economy, from the two most populous nations in the world.
China's President has called it ‘the project of the century.’ The initiative is motivated by a desire to boost economic growth in both China and nearby countries. This will provide a growing market for trade. It’s the largest overseas investment plan ever launched by a single country.
To get a better idea of how the Chinese economy is travelling, keep an eye on commodity prices like iron ore and oil. China is the major buyer of these crucial commodities. While their prices remain supported, you know the Chinese economy is doing OK.
According to Bloomberg, ‘Mom-and-pop investors haven’t been this crazy for Hong Kong initial public offerings since 2009.’
After going sideways for five months, the Aussie market has been on a tear lately. At the same time, our largest trading partner, China, has been in the news — and not all of it is for positive reasons.
While all the focus is on western economies which have been plodding along, I’m expecting Asian markets to be really strong in the coming year. A strong Asia will present opportunities on the ASX and keep our market bubbling.
The US argues that Beijing forces US companies into giving away Intellectual Property as the price for doing business in China. Stealing business ideas is one thing, but it’s the deeper technology insights the US wants to protect. How Trump reacts to this is the big unknown.
Iron ore rallied in July and August. Yet it has plummeted in the last few weeks after fears that the crack-down on pollution could affect both supply and demand of the iron ore market.
Earlier this week NEO founder and CEO Da Hongfei shed some light on the crypto’s future. Da was interviewed by Dutch finance publisher Het Financieele Dagblad. And as the dust settles in China following the crypto crackdown, Da remains ever the optimist.