• Is it a bubble? Or not? Wall Street Journal journalists have MBA/EMBA students into China stock markets

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    Should we keep uncorking the Champagne bottles amidst a continuing boom in China’s markets, as company after company goes public and China’s economic star keeps rising? Or should we be preparing for the bursting of what may be a speculative bubble of unprecedented dimensions? And what effect could the current credit crisis in the US have on China’s burgeoning financial sector?

    Two Wall Street Journal journalists have raised those questions in a November 5 special afternoon discussion with MBA/EMBA students in School of Management at FudanUniversity.

    During the face-to-face discussion, Ken Brown, the deputy editor for the Money and Investing section of the Wall Street Journal, briefly analyzed how the economic bubble is created and how the aftermath is to be, by citing the example of ups and downs in US financial market. James T. Areddy, a Shanghai-based correspondent for the journal and a joint winner in 2007 of the Pulitzer Prize for International Reporting, took a retrospective method to explain the public views on stock markets in the past dozens of years, and brought into light some of his understanding of Chinese market, like how the government should play an adjusting and monitoring role for the market process. They also shared with students at the discussion their opinions on results of comparing Chinese market with US market, as well as on the issues of hedging against the risks in the market.

    In the last segment of the meeting, the senior journalists were fully dedicated to answering the questions regarding such issues as currencies and economic development modes which were arising from the students. And they hoped very much for a second chance to hold this kind of discussion with students from world-class EMBA programs, like from the Fudan University-Washington University EMBA program, which was very recently pushed one position up to No. 7 and continued to be No. 1 in Chinese mainland in the 2007 Financial Times annual rankings of international EMBA programs.
     
    November 6, 2007
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