For those worried about Chinese debt buying, a Chinese equity bubble, trade deficits, current account deficits, and the like this is at least a week to put that aside. This week the Chinese markets are closed for Chinese New Years (Year of the Pig).
Most of the main ADR’s that trade here in the US and Europe will continue trading, and this may create more swings since the other side of the globe’s trading on the names is inaccessible on the local markets. Companies with active shares such as Baidu.com (BIDU) will likely continue to see active trading on NASDAQ, but lighter volume shares that trade on NYSE such as CNOOC (CEO) could see a lighter volume week. As we get to the end of the week you’ll also see some trades go on the various ETF’s if there are any big macroeconomic events that move the international markets.
The Chinese New Year also affects Taiwan, Singapore, and Malaysian equity markets.
Jon C. Ogg
February 20, 2007