| Will Chinese shares prices drop down? | |
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| May 17, 2007 09:01 |   |
 | Chinese shares Thursday regained ground lost two days earlier, stepping back over the 4,000-point barrier, with B-shares leading the way. The benchmark Shanghai Composite Index concluded Thursday trading at 4,048.29 points, up 62.25 points, or 1.56 percent, from the previous close on a daily transaction volume of 189.6 billion yuan (24.6 billion U.S. dollars). The Component Index on the Shenzhen Stock Exchange rose 328.73 points, or 2.81 percent, to end the trading day at a record 12,011.08 points on turnover of 98.5 billion yuan (12.8 billion U.S. dollars). On Thursday, the Hushen 300 Index, which tracks 300 companies on the Shanghai and Shenzhen stock exchanges, closed at 3,778.61 points, up 78.32 points, or 2.12 percent, from the previous close..... ----------from Xinhua News Agency It seems that Chinese shares market boosts greatly. At present, more and more Chinese people are taking a running jump at stock exchange and have gained a lot of money. Some peole even ask bank loans or sell houses to buy the shares. They claim" I wanna earn money at shares market." "taking a running jump at stock exchange " has become the most popular thing. People are crazy about the shares. Even some farmers are lured by the huge profit of the shares and wanna have a try. However, some analysts warn that all those investors should be cautious before they decide to take part in it and the shares market does exist risk. Is that normal? How do you think of this issue? Will Chinese shares prices fall? |
| May 17, 2007 20:18 | #1 |
| Two of my friends win a lot this year in this business. |
| May 30, 2007 11:18 | #2 |
| In one sense, yes they are sure to drop because there are always some dips. The question is will it be big enough to cause problems? Shares are overpriced on historical earnings but with the massive growth in profits there is some justificaton for high prices anticipating future profits. Of course if the companies cannot pay good dividends, investors may begin to query the high prices and sell. I would suggest that one reason that people are so keen to invest in the market is that interest payments in banks etc are so low. We are told there are massive private funds saved in low interest accounts at banks because people have chosen to save, (remembering the difficult past). But with such low interest rates, investing in shares looks very attractive. Now that money is moving into shares in the hope of better returns. The retail investor needs better returns without the level of risk that goes with shares. |
| May 30, 2007 20:30 | #3 |
| Yes, apault. People are lured by the high returns so that they invest in shares. It is said that about 100 million Chinese are taking a running jump in the stork exchange. If the shares drop, surely it will cause problems. The government has adopted some measures to cool down the shares market. The stamp tax has increased from 0.1% to 0.3%. And the shares market in Shanghai and Shenzhen has been affected. Hope the shares market can step into a steady development. |
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