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How is the market in China affected by the current European monetary crisis?

by Ed
(Hailey, Idaho)




Hi, Within the past 3 weeks one of my mutual funds that invests heavily in Europe took a 15% drop. However I was looking at another fund I had that invests in Chinese stocks and it fell 12%. I would of thought Asia would be relatively stable? In general, how is the market in China affected by the current European monetary crisis?
Thanks




Comments for
How is the market in China affected by the current European monetary crisis?

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May 22, 2010
Stocks Simplified Writes
by: Shaun

In short China is heavily dependent on exports. Europe as one of the big importers will have a huge affect on the Chinese market. There is little doubt that if the European economy continues to fall it will bring the Chinese economy down with it.

However if they can stabilize and recover that should also boost the Chinese economy. The world is getting to be a small place, what happens in one part of the world will affect another.

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