Posted by: Matt Comyns on 2009.05.21 12:04 in matt c

Today’s news about Bank of America raising $13.5 billion on a share offering makes me smile. It clearly demonstrates that the stock market is on the mend. Three months ago, Bank of America could not raise $1 let alone $13.5 billion (unless it came from the government). And as the markets start to work again and private money pours back in and takes risks, the global economy will start improving. If this scenario continues, then the Chinese government will look like a magician -- having propped up its domestic economy with stimulus and bought time for the rest of the world and markets to recover. IPOs and the secondary market etc. will ignite, and the concern about private investment in China will become a thing of the past. If this happens, Chinese stocks and stock markets will have more running room than one would think given the recent lift in Chinese shares/markets.