Equity markets in Hong Kong and the US have both caught China IPO fever helped by an expectation among cash-rich global investors that the country’s economy will continue to grow at a high rate. However, that enthusiasm is not at all felt in China's own markets.
The Shanghai Composite Index SCI fell 10% in the week after Beijing announced its first rate hike in three years in mid-October as part of its battle against inflation. Indeed, consumer price inflation rose to an alarming 4.4% in October, exceeding the government's tolerance level of 3%. Several major cities have introduced price controls and companies from various sectors have been ordered not to raise prices,...
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