China is expected early next year, the stock market stable

JP Morgan Chase Chairman of the Department of Li Jing of China's stock market yesterday released the "2009 China Economic Outlook" report that the global economic slowdown more apparent, as well as the Chinese government to promote large-scale program to stimulate domestic demand and economic background, In 2009 the Chinese economy will be a challenging year, while the Chinese stock market is expected to stabilize in early 2009, part of the investment opportunities in emerging industries. China growth potential Jing pointed out that China's economic slowdown in the property market (topic) and both the stock market nose-dive, the Chinese consumer is a major test of adaptability. Chinese real estate developers in the short term is still the face of challenges, more affordable housing will almost certainly result in the introduction in 2009 of the supply situation is more severe. According to the current sales rate, part of the city's existing housing stock to be absorbed completely, at least until 2010. Housing is expected in early 2009 the price will be further room for downward adjustment. However, China's current macro-economic policies have been to stimulate the economy. According to China's current taken by the unprecedented scale of expenditure and monetary policy easing, the report forecasts next year overseas listed Chinese stocks is expected to brilliant performance. Contrast the world's stock price, stock price plate number of attractive, especially considering that China is still huge growth potential. Li Jing said in the report, although in the short term economic news is still mostly negative, the results also will be in a period in the doldrums. She pointed out: "We are optimistic about the railway, building materials, telecommunications and healthcare industries, but the business cycle impact on vulnerable industries are still cautious, such as metals, shipping and heavy machinery." According to the report, there are major risks to the economy next year in China led to economic slowdown or decline in the performance of the company; cash shortage led to the rise in default risk, the ability to influence corporate finance; Xidai cautious bank lending to companies to obtain competitive; expenditure allocation, and so on. The report notes that despite the many challenges facing China's economy still in a number of favorable factors - the financial stability of China, the low level of government debt and bank deposits of 46 trillion yuan, enough to cope with a global recession. He did not see the iron and steel and coal Transport facilities, ports, agriculture, infrastructure, housing home security, disaster recovery and reconstruction of power grids will account for the additional expenditure of the main part of the China railway construction and building materials supplier company will be the most direct beneficiaries of the fiscal stimulus measures. Iron and steel industry is still a challenging prospect in the near future, to cut production to reduce inventory and will continue until the first half of 2009. However, China's economy is expected to stimulate the program over the next two years by building on the considerable demand for steel produced. After the boom years, the prospects of poor demand for coal, as a result of economic slowdown, industrial energy demand fell. In 2009 the current price of coal is expected to continue to decline, but the contract price is expected to rise in spot and futures price differences narrow. Coal prices will help ease the power plants, cement manufacturers and other users of coal cost pressures.