It is clear that the Chinese people are in the panic mode! Today, the market halted for the second time since Monday. They have no choice but to impose a selling ban. This is the time when market went into a situation where it doesn't make sense.
Oil price drop should have good impact on Chinese manufacturing business. However, it doesn't seems helping them much. Furthermore, Saudi Arabia increase the crude oil price in Asia for the coming Febuary, which is the month of the great migration in China. It really doesn't help to boost any industry either.
I've mentioned about the Kiasi and Kiasu spirit of the Chinese in my previous blog post. Here, I want to blog about the superstition of Chinese people.
What kind of superstition? We Chinese believe in many supernatural power. Feng Shui, Zodiac... etc. For the modern Chinese, we do study and analyze the history, and make a conclusion by our own. Then, we believe in that conclusion and act upon it.
Many people believe that every 7 to 8 years, there will be a huge economical crisis. It coulb be called the Jubilee, or every 2 terms of US president... etc. Therefore, regardless of facts and figures, or may be it is due to the figures, they will still act upon their assumption.
There are reasons why the manufacturing activity reduced... upgrade of economic activity! Yes, that's the reason. Nowadays, when China no longer cheap, people have to pay more to the Chinese workers to get a better life. However, the sad fact is, consumer loves cheap stuffs. Compare the more expensive Made in China stuffs with a cheaper Made in Bangladesh stuffs, consumer will just get the cheaper stuff. They don't care if the Bangladeshi workers are mistreated.
Therefore, 2016 will be a though year for China. This is a bad Monkey year!
Money Come Come Come! Meow!
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