And here’s what been happening this week!
1) China’s Stock Market Value Tops $10 Trillion for First Time
$10 Trillion, that’s 10 followed by 12 zeroes = $10,000,000,000,000. That’s ALOT of zeroes!
This was the first time in the history of China that the market capitalization of primary listing in China went above $10 trillion. To place things in perspective, Japan’s market capitalization was only $5 trillion. But what was really interesting was China was ranked behind Japan just 12 months ago and the stunning increase of $6.7 trillion happened in just a year!
However the main question on everyone’s mind is: “Is the market overvalued?”
Well your guess is as good as mine but the combination of a huge surge in market value without a corresponding change in fundamentals with individuals taking on higher leverage in their ventures is something that we should take note of!
2) Noble Shares Embarks On Share Buyback
In the wake of Iceberg’s report, Noble has been faced with questions about its accounting practices.
To rub salt in their wounds, S&P cut its outlook on Noble’s debt to “negative” from “stable”. This was not a very good sign for a company whose operations are dependent on debt.
In an attempt to stem the bleeding (Prices have fallen 40% this year), Noble announced in the past week that the company had bought back 25 million shares or about 0.4% of total issued shares at S$0.67 each for a total consideration of S$16.8 million.
3) Thousands March in Hong Kong Against China-Backed Vote Plan
Thousands joined a march in Hong Kong to demand that lawmakers reject a China-backed plan for Hong Kong’s first direct Chief Executive election on 14 June 2015.
Protesters rallied at Victoria Peak before making their way towards the government headquarters.
Is the umbrella movement coming back?
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