China Index falls 5% on Premier Wen's comments

[GoFlyKiteNow]

25 August 2009

(CNN) -- China's stocks fell on Tuesday, one day after the nation's premier warned against overly optimistic signs of a recovery from the global financial downturn.

The Shanghai Composite Index had dropped 4.97 percent by mid-afternoon Tuesday. The index has dropped about 17 percent so far in August.

The Shanghai index tracks the bigger of China's stock markets, covering both A and B shares. Learn more about types of shares traded in China

The drop followed comments made by Premier Wen Jiabao on Monday during a trip to east China's Zhejiang province.

"There are still a lot of unstable and uncertain factors ahead and the economic situation ahead is still very grave, although both the world economy and the national economy are making positive changes now," Wen said in reports carried by the state-run news agency Xinhua.

 

[Watchman]

It can only get worst no better ! What improvement we are seeing are people
who are talking up the market with no genune improvement done whatever
on the ground .
Countries will continue to face deficits. And with the uncertainty looming, more will tighten up further
From government bodies to mom and pop shops !

What figures you be seeing is more likely to be struggling numbers.