After yesterday's 300 over points rise, today was comparatively quiet.

China's premier Wen Jia Bo said that the administrative measures are working and should bring the Chinese economy to a soft landing. This is read as meaning that interest rates will not need to be increased (at least not in the near future, and not drastically). The market cheered and up she went.

If you remember, the whole thing started with the rumour that the People's Bank of China had submitted a plan to increase rates to the State Council. Of course, when this was denied, the market paid no attention because the original comment that the economy was overheating and administrative measures were needed came from Wen himself. It took another comment from him to reverse the effects.

Does this mean that from now on, only Wen's comments are to be believed? This is a problem with a command economy. He who commands the economy, commands attention. The china watchers will only believe one man. He's going to be very busy making pronouncements on all matters large and small.

The HKEx has given a waiver to Hutchison (#13) to include the Indian telecoms assets in the spinoff of the telecoms business even though that will be spunoff within 3 years of the new listing. I am looking for Hutchison and Cheung Kong (#1) to provide some leadership next week.