Fri Jul 11, 2008
By Lu Jianxin - Analysis
SHANGHAI (Reuters) - Shen Liming, a Shanghai retail investor who has put tens of thousands of dollars into China's stock market, has chosen to cut his holdings in the past several weeks -- but for reasons not directly related to China.
"The U.S. economy is unstable. Our neighbor Vietnam is in a financial crisis," says Shen, 66, a retired factory worker. "With such a global background, our market is unlikely to get too bullish. So we should sell now and look for bargains later."
Once assumed to be isolated by capital controls and a booming domestic economy, China's financial markets are starting to move more closely in line with foreign markets as both investors and policy makers base their decisions on events abroad. http://www.reuters.com/article/reutersEdge/idUSSHA36933920080711?sp=true