Prosperity and Chinese New Year 2011

The economic wound caused by US sub-prime crisis might have started to recover but in Malaysia consumers are still not feeling safe to spend more for this upcoming Chinese New Year 2011. For some reasons Chinese's spending behaviors for this festive season are somewhat reflective to the country economic condition.

FTSE Bursa Malaysia KLCI  has gone down for more than 30 points in 2 weeks (prior Chinese New Year) and  the pointer is expected to go down further unless cash-rich investors decide to buy in some bluechips at low price. I read a newspaper article saying stocks listed i  Bursa Malaysia offer lower rate of return than debts, theoretically debt is less risky than stock and risky investment should promise higher return. However, I'm not able to verify the statement so we shall see. 

In a nut shell, Chinese have not been spending the way they used to. Textile and apparel industry has been complaining about the raising cost of production and low demand, result in lower profits or even loses. 

Afraid of intelligence property infringement, businesses also reluctant to play CNY music and further reduces the so-called 'CNY atmosphere'. 

Nevertheless, I wish all readers and haters of this blog Happy Chinese New Year and a fruitful year ahead.

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