Chinese stocks got their best rally in two weeks last night, but Shanghai is still down 29% from its peak. The macro numbers have been horrible. What will it take for Beijing to step in? Tune in tonight on CNBC for the answers.
Last week's industrial production numbers came in at their worst since August 2009 -- when the global economy was still digging out from the Lehman Brothers disaster.
Monetary supply is crawling along at its lowest level in over a decade, reflecting a dramatic downturn in demand for yuan as well as Beijing's efforts to clamp down on lending.
Exports are up 13.8%, which would be great for any country that does not have China's track record of 20% to 25% export growth.
But it looks like the government is actively buying stocks in Shanghai now and there might be another reserve requirements cut over the weekend.
Added stimulus could also be on the way.
Remember: the Chinese market began a rally in November 2008, months before the rest of the world realized the credit crisis was already easing.
Shanghai was a leading indicator then, and then led the world down in April.
Will it be a leading indicator again?
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