Olympic factory closures hurt GDP numbers
Posted on Friday, October 17th, 2008 | In Asia
Contributed by: Tony Sagami (http://blogs.moneyandmarkets.com/blog/china-and-asia-stock-alert) -
Next week, China will release its official GDP statistics for Q3 and I expect it to be down from the 10.1% in Q2. That doesn’t mean that the Chinese economy is falling.
Consider this report of Beijing cement factories.
“Of the 28 cement factories in Beijing, 27 were shut
down during the Olympics. The only one left open was Beijing Cement
Factory, which survived because it was also the city’s biggest solid
waste treatment company.”
“However, it was also asked to stop one of its
production lines the day before the Games’ opening ceremony to ensure
good air quality.”
That same pattern happened to thousands of businesses in Beijing and those temporary shutdowns are why Chinese GDP will be down in Q3,
Last 5 posts by Tony Sagami
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 About Tony Sagami (http://blogs.moneyandmarkets.com/blog/china-and-asia-stock-alert)
Tony Sagami, a veteran investment advisor and a leading expert on Asian markets, is the owner and founder of Harvest Advisors, an investment research and money management company. Mr. Sagami has been managing money for more than 20 years and is one of the early pioneers in the application of technical and quantitative analysis to mutual funds and stocks. He is a featured contributor to Weiss Research’s daily e-letter, Money and Markets and monthly Safe Money Report as well as the editor of Asia Stock Alert. Prior to establishing his own firm, Mr. Sagami was managing director at W.E. Donoghue & Co, serving additionally as the director of investment. During his successful career, he also held the position of account executive at Merrill Lynch. Mr. Sagami’s views on Asian markets, specifically Chinese investments, have been featured in publications such as The Wall Street Journal, Barron’s, Kiplinger’s, Smart Money, Business Week, New York Times, Washington Post, Investors Business Daily, Bloomberg, Financial Planning Times, Mutual FundsMagazine, Chicago Tribune, and the LA Times, as well as on CNBC and CNBC Asia. Mr. Sagami holds a degree in economics from the University of Washington. |
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