Soros: China Risks Hard Landing (Shanghai, Hang Seng, FXI, EWH Charts - 6/19/2011)

via Flickr (JamesReaFotos)
George Soros warned about China's economy at a conference in Oslo, according to Bloomberg.

"China has missed its opportunity to stem inflation and may now risk a hard landing, billionaire investor George Soros said."

"The world’s second-largest economy is in a “bit of a bubble,” Soros, 80, said today at a conference in Oslo. There are some signs that China is “losing control,” he said."

"China’s formula for steering its economy is “running out of steam,” Soros said, adding the country is seeing the beginnings of wage-price inflation."

Shanghai Stock Index ($SSEC) 1-year Chart

Soros also talked about Europe and Africa. Below I put up charts of the Shanghai Stock Composite Index ($SSEC), Hang Seng Index ($HSI), FXI (iShares FTSE China 25 Index ETF) and EWH (HongKong iShares). They all look like they are rolling over and/or piercing near term support levels. EWH, and probably the others, couldn't break above the 2008 high so I bet it retraces a bit. A breakout above 2008 resistance would signal long-term upside in my opinion. In the near term, these charts need to break out of downtrends and confirms support levels. Jim Chanos, who warned about Enron before it collapsed, has been bearish on China for a while. (Jim Chanos: China's Economic Growth Path Is Unsustainable (CNBC) 5/6/2011).


Shanghai Stock Exchange Composite Index ($SSEC) 3-year Chart

Courtesy of StockCharts.com

$FXI (iShares FTSE China 25 Index)

Courtesy of StockCharts.com

$HSI (Hong Kong Hang Seng Index)

Courtesy of StockCharts.com

EWH (HongKong iShares ETF)

Courtesy of StockCharts.com

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