Hong Kong shares rose Wednesday after Asia's biggest economy grew faster than expected in the second quarter. More broadly, stocks across the region were little-moved. South Korea's KOSPI rose by 0.1%. Australia's S&P/ASX 200 was fla. Japan's Nikkei 225 lost less than 0.1%, ignoring a slightly weaker yen.
While China did a better than expected Q2 stock performance, it came as a suprise because all of the stocks across the region hardly had changes.
I am not surprised as China is overtaking the financial position once held by the US at a staggering rate. The economy in China is very strong with a capitalist market monitored by a communist government. The Chinese are also able to inflate reports due to their political structure. Regardless of inflated numbers the market in China holds a very strong position.
One thing we should know by now when we're dealing with China is that the country is tenacious. At times we may not understand the Chinese culture, but any reasonable person has to respect the Chinese people and their hard work. We shouldn't be surprised when the country's businesses exceed expectations.
China is quickly becoming a leader in the global marketplace. The nation has become highly industrialized in a relatively short period of time. Its leaders believe the country is prepared to compete the United States in the world economy. Their confidence foreshadowed a strong stock market performance in the second quarter.