More warnings expected but investors likely to be unmoved
This week starts out with one of those glaring contradictions that make mainland business as intriguing as it is. Here in Hong Kong we're observing the 18th anniversary of Beijing's bloody crackdown on citizens who were asking for a freer society, and while candles are lit and speeches delivered, mainland capitalistic greed is reaching a fevered pitch rarely seen in democratic corners of the globe.
Last week brought a handful of new warnings and a higher tax in an attempt to rein in the market, and this week will likely bring more warnings, but so far investors are not blinking. While the finger wagging has made investors more nervous on days the ticker dips into the red, it's done little to tame their buying enthusiasm on days when the market climbs.
But an overvalued stock market isn't the only thing on the minds of lawmakers and the business community this week. China is expected today to release a plan to address its role in climate change, a problem that will be around long after the market bubble has burst.
Last week's International Conference on Climate Change here in Hong Kong made it clear that the environmental movement around the globe is looking for leadership from the United States and China, so there will be keen interest to see what Beijing puts on the table.
Beijing's blueprint is due just two days before President Hu Jintao goes to Germany to meet Group of Eight leaders, with global warming high on the meeting agenda.
US President George W Bush tried to steal G8's thunder last week when he asked leaders from major greenhouse gas emitters to meet and discuss an accelerated arrangement for controlling climate change. He also said he would cut tariff barriers to sharing environmental technology.
