Friday, June 1, 2007

Even 30% Fall in China Shrs Wouldn't do much!

Citigroup in note says without Beijing''s continuous policy action, China A-share market correction likely temporary, but even if market corrected 30%, impact on economy would be about 1 percentage point drop in GDP growth with retail sales growth would fall 3 percentage points; implications for bank loan quality likely limited, but property prices may rise if stock funds flow into property.

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