2012 May Not Be Such a Great Year for China.
If China’s Premier is right about how things are going in their own country…then 2012 may not be such a great year for China. See below what he had to say:
Chinese Premier Wen Jiabao said business conditions may be “relatively difficult” this quarter and monetary policy will be fine-tuned as needed.
“We see downside pressure on our economy and elevated inflation at the same time,” Wen said during a two-day trip to Hunan province, according to a statement on the government’s website yesterday. “We also face problems of weakening external demand and rising costs for companies.”
In its first day of trading in the new year, the Shanghai Composite Index fell 1.3%.
But as you can see, Chinese stocks have clearly been in a downtrend for a while now…which further validates the eroding conditions in China right now.
So is the Premier shooting straight with us? I believe so.