China is just one country being closely watched by investors these days.

- By John March
Investors and financial experts around the world have reacted with concern to reports that China is scaling back its lending activity with an eye on preventing its economy from being undermined by too much credit activity.

While the U.S. has decided to keep its own interest rates low for the time being, few expect this to remain the case for long. And in the case of China, its own recent announcement has already created some economic effects.

For example, a recent Reuters report noted that stocks in Shanghai have lost 9 percent since the January 12 announcement, and there is concern among companies that the news could lead to cancellations of Chinese imports and inflation.

China is an increasingly important player in the global economy, with Reuters also noting that the country's economy is expected to grow at a 10 percent rate this year, which is five times higher than the prediction for all advanced economies combined.

With other countries, such as Greece, also causing alarm among investors because of looming debt problems, gold investments remain an attractive option in light of uncertain economic prospects.


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