Wednesday, May 30, 2007

Greenspan's China Stock `Contraction' Unraveling Economy Gets Minimal Risk

(Bloomberg) -- Even if former Federal Reserve
Chairman Alan Greenspan is right, the ``dramatic contraction''
he predicts for Chinese stocks isn't likely to infect the
international economy.

That's the conclusion of a number of international
economists and former government officials around the globe.
They say China's economy shows little correlation with its stock
market, foreigners are mostly excluded from owning shares and
Chinese participation is limited to less than 10 percent of the
population, reducing the effect of a bursting bubble.


Read more at Bloomberg Exclusive News

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