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Tuesday, June 29, 2010

The Chinese (Reporting) Bubble

It looks like construction isn't the only inflated item coming out of China. Bloomberg details:

The Conference Board revised its leading economic index for China to show the smallest gain in five months in April, in a release that contributed to the biggest sell-off in Chinese stocks in more than a month.

The gauge of the economy’s outlook compiled by the New York-based research group rose 0.3 percent, less than the 1.7 percent gain it reported June 15. The Conference Board said in an e-mailed statement that the previous reading contained a calculation error for floor space on which construction began.
Blame needs to go to the Conference Board, but the lack of transparency coming out of China didn't help.



Source: Conference Board