Its time to remember that china announces massive Four trillion yuan ($586 billion) stimulus package to boost demand in the face of slumping export market during Novemeber 2008.
Four trillion yuan ($586 billion) will be spent on upgrading infrastructure, particularly roads, railways, airports and the power grid; on raising rural incomes via land reform; and on social welfare projects such as affordable housing and environmental protection.
But What charts are telling us? Did their Stock Market flourished?
The Answer is Simply a Big No. Even after annoucning such a huge timulus package the mood of the Chinese markets remains dull and still they are moving downwards even after the announcemnet of fiscal package. Looks at current scenario… stimulus package wont cheer up the markets.
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Click on the charts to have a clear view
Charts shown here is a 3 Year Weekly chart of Shangai Market with three multiple exponential moving average. As per my argument in last post- Simple Nifty Weekly View, china too having the same problem with 13 week EMA. Shangai Stock Exchange Composite Index is moving down after respecting 13 Week EMA resistace. Looks China remains the leading indicator of all the world indices
