China after the Olympics

Now that the Olympics are over, China is also concerned about slower growth. On Tuesday, J.P. Morgan reported that Beijing is considering a stimulus package of up to $58 billion, in addition to other monetary-policy-easing measures. J.P. Morgan's head of Chinese Research, Frank Gong, wrote that "the top leadership is carefully considering an economic stimulus package of between 200 billion and 400 billion yuan" ($29 to $58 billion). That's in addition to 600 billion yuan ($87 billion) recently spent on rebuilding China's earthquake-affected areas.

In addition, China has increased its power prices for the second time in two months, by raising grid rates by about 5% to head off a looming power crisis. About 80% of China's electricity is generated from coal-fired plants, and the Beijing Summer Olympics has exacerbated China's growing power supply problems.

Louis tells you about what China's doing that could affect you. Read more.

by The Freshman |  08/27/08