Turmoil in Tibet Not Rattling Investors Yet
Despite several days of rioting in Tibet, investors in China and Hong Kong have taken little notice of the unrest, and market observers don't appear to be expecting that to change substantially any time soon.
Since Saturday, violence prompted by antigovernment protestors has largely been overshadowed by news of surging energy prices and the $2-a-share sale of Bear Stearns (BSC) to JPMorgan Chase (JPM). Few investors in Hong Kong think the Tibetan riots are significant, and most say that if any selling appears as a result of them, investors should view the cheaper stocks as a bargain.
"Tibet is too small a part of the Chinese economy for this to matter much," says Michael Spencer, chief Asia economist for Deutsche Bank in Hong Kong. "This is a political disruption in a very, very small and insignificant economic part of China."
Others generally concur. "From the point of view of Hong Kong investors, people don't really bother to look at it. They'd rather focus on the U.S. fundamentals," says Andy Lam, associate director of Harris Fraser in Hong Kong.
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