May 2013 (Chinavestor) The month of April continued where March left off: surging U.S. equities and falling Chinese counterparts. In fact, the Dow Jones Industrial Average (INDEXDJX:.DJI) and the S&P 500 both reached all times highs in April and continue to show strength. All told, the Dow advanced 1.8% in April and is up 13.2% year-to-date (YTD).
In contrast, Chinese stocks fell in Shanghai sending the broad index 2.0% lower for the month. The Shanghai Composite index (SHA:000001) is off 4.0% YTD. Most of the fall is attributed to uncertain global demand for Chinese goods. The European Union, China’s largest trading partner, is in deepening recession. China’s manufacturing activity fell in April and was below forecast, sending the Shanghai Composite into a tailspin in April.