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...listed Chinese companies more than triple in value, the country's bull market is stumbling. Indexes in Shanghai and Shenzhen are both down about 15% from their October peaks, and recent moves by the government to cool China's runaway economic growth appear to have deflated the mania for stock investing that has gripped urban Chinese, from maids who quit their jobs to devote their time to trading stocks, to pensioners who plunked their life savings into the markets. Almost daily, myths that were pervasive among neophyte Chinese investors - that what happens to the U.S. economy doesn't matter...

Author: /time Magazine | Title: A Market Mood Swing | 11/22/2007 | See Source »

...That's the day he sat in the private trading room that Shanghai Securities, his broker, makes available to their sophisticated clients and awaited the highly anticipated Shanghai-market debut of PetroChina, China's biggest oil-and-gas conglomerate. PetroChina was raising $8.9 billion, the largest initial public stock offering in China ever, and the buzz surrounding the listing was deafening. Tian thought the shares would quickly become overpriced, so he decided not to even try to buy. Indeed, PetroChina shares nearly tripled that first day, pegging the company's market capitalization at more that $1 trillion...

Author: /time Magazine | Title: A Market Mood Swing | 11/22/2007 | See Source »

...interest rates paid on bank deposits don't even keep up with the country's rising inflation rate. People were still pouring into the market a few months ago. In August, about 4 million new trading accounts were opened, but the numbers have been falling since, according to stock exchange officials in Shanghai...

Author: /time Magazine | Title: A Market Mood Swing | 11/22/2007 | See Source »

...rush for the exits could pose problems for China's economy. According to a recent study by Merrill Lynch, China's investor class - an estimated 150 million people - has sunk 22% of its capital into the stock market, compared with 8% two years ago. Shanghai-based economist Andy Xie calculates that if the stock market drops by half, urban households will lose about 20% of their overall net worth, putting a dent in consumer spending. Overall, economists figure that a 50% decline in equity values might lop 1-1.5% off China's double-digit GDP-growth rate...

Author: /time Magazine | Title: A Market Mood Swing | 11/22/2007 | See Source »

...shows like Fantasy Island and Diff'rent Strokes. Facebook has gone even further. In August it sent out an open invitation to software developers to devise new widgets. Three months later, Facebook has some 7,000 free add-on applications that let members do everything from monitor their stock portfolios to map anyplace they've ever visited to text friends' phones via the site...

Author: /time Magazine | Title: Is Facebook Overrated? | 11/21/2007 | See Source »

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