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Sri Lanka Equity Forum » Stock Market News » Eggs are better investment in China

Eggs are better investment in China

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1 Eggs are better investment in China on Fri May 13, 2016 11:22 am

VALUEPICK

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After iron ore, Eggs have been a better investment in China in 2016 when compare with stock market there. Egg futures have climbed 27 percent. Speculation activity has increased so much that some traders probably don’t even know what they are buying or selling.
 
China is pouring hundreds of billions of dollars into its economy to support growth. Some of it is going into infrastructure and other big projects and some of it is going into eggs. In China, investors can place bets on the future productivity of the country’s hens. Egg futures have surged by as much as one-third since March. China is the world’s biggest producer of eggs but it is not clear what is going to happen due to this investment surge in eggs.
China’s previous efforts to bolster growth sent money into real estate and the stock market.
After the 2008 financial crisis, Beijing deployed huge stimulus which led to a property market bubble.

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