Changing China
Giant on the move
How cheap is cheap?
How cheap is cheap?
That was the most frequently asked question among bankers and private equity experts attending a recent forum in Hong Kong, as they swapped strategies about how to pick up stressed assets during the financial crisis.
When Lehman Brothers collapsed a year ago, everyone shared the same view: The global financial crisis was just beginning.
But one year on, many global markets have bounced off the bottom and some have recovered quite nicely. The Shanghai benchmark index, for instance, has gained more than 50 percent since the beginning of this year. As a result, views among bankers and top investment strategists about ongoing risks to the business outlook have started to diverge.
“Valuation is still a big threat,” said Michael Kim, a former senior Carlyle executive who founded MBK Partners after leaving the U.S. buyout giant.
“If a W-shaped recovery is going to happen, I think it will be a tremendous buying opportunity,” said Kim, referring to the possibility of a “second dip” market correction.
Andy Xie, former chief Asia economist at Morgan Stanley who earned his reputation in the financial industry as one of the most bearish analysts in Asia, forecast that a “second dip” in China’s market could occur next year.
Dear Editor,
Well done by way of writing it.
These new,interesting words were created by business schools,writers and economists.
As long as it suits their aspirations,needs and achieved their goals in some extents,then they started going for some other new,attracting words for consolidations,sudden static stage and for further market expansions.
Now a days, it has become customary to say that,recession is over,financial institutions were learned from their back fired results etc.,
Time to buy assets and immovable properties at cheaper denominations and for further selling,profits in future economic growing maps.
Actually speaking, that is not happening at present.
Slight recovery in real estate,consumer durables,automobiles and houses for building,rent,and for purchases.
The word !Cheap!is a very sweet word for borrowers and for sellers.
Whereas, prices are going up in all sectors.
Notably,among food grains,power,video player, systems,educational tools prices are increasing day by day.But, income generations are still in snail pace.
Good,humorous article on economic point of view.