China

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Part of the recent optimism in world markets rests on the belief that China’s fiscal-stimulus package is boosting its economy and that GDP growth could come close to the government’s target of 8% this year. Some economists, however, suspect that the figures overstate the economy’s true growth rate and that Beijing would report 8% regardless of the truth. Is China cheating? Economists have long doubted the credibility of »»

The Hang Seng Index has seemingly recovered from its plunge on news of the credit crunch in the US.  A 13% drop in the Index occurred in late July to mid-August.  However, it soon bounced back thanks to the expectation that the funds flowing in from mainland China would improve the valuations of mainland company shares. As of mid-September, the Index has reached record highs on expectations that the US Federal Reserve will cut »»