VICTORIOUS TEAM

Countries For The Project for the Period 2011 :

1] China
2] India
3] USA

Team Members and Students IDS :

Nikita Bhivate A2604 ( U.S.A.)
Li Jianwei A2394 ( China )
Tingting Hao A2319 ( India )

MBA 531 International Financial Management.

Prof. Jayant Kanitkar.

INTRODUCTION :

Introduction Of China :

During the period from 2007 to 2011, the whole world has been suffering from global economic recession and financial crisis. From US subprime to EU sovereign debt crisis, China, as the second largest economy in the world, experienced internal and external economic impacts.

In the year of 2007, China’s economic development reached its pick. With the expectation of CNY appreciation, hot money flooded into China. As a result of this, the price of investment asset surged up sharply. The housing price tripled, and the Shanghai stock index reached to a historical level of 6300 from less than 3000 with in one year. The wealth effect from the high investment asset price stimulated consumption. Moreover, China was keeping its high net exports trading volume and fixed asset investment. The GDP growth rate exceeded 10%.

However, the financial bubble broke in the US, and a chain reaction directly affected China. In 2008, all economic indictors shown that China’s development slowed down. Stock market can be regarded as the forecaster of economic. The Shanghai stock index dropped to 1900 from 6300. Affected by recession in international trading partners, the export also decreased sharply. Facing these problems, Chinese government proposed a basket of economic stimulation plans. The most influential one is the CNY 4000 billion infrastructure investment plan. Due to the stimulation, China’s GDP kept its 8% growth.

The global financial crisis is far from end. In 2011, EU sovereign debt crisis made the world economic