Monday, January 24, 2011

Chinese (or Lunar) New Year is Feb. 3, 2011

The Chinese (Lunar) New Year falls on Feb. 3rd this year.

Because it is based on a lunar calendar, it's always a different date.

Anyone who works in the international shipping business from Asia, knows the impact of this holiday.

Basically all the factories shut down for at least a week, generally more. Everyone goes home (which is often a small village in China) to celebrate the holiday with their family.

And because the business of the country is shut down, nothing ships out, or in.

There could also be some major shifts in the Chinese economy.

From Bloomberg

China may raise the reserve requirement ratio for banks this year, the People’s Daily said, citing Bank of Beijing Co. Chairman Yan Bingzhu. The country may also use “other tools” to reduce liquidity, the report said, citing Yan.

The nation may raise interest rates around the Chinese New Year, the China Securities Journal said in a Jan. 21 front-page editorial.

As I have said before, China's economy will be driving the rest of the world in the next decade, so it's important to notice what's going on in China.

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