The Return of the red chips!

The Return of the red chips!
Jul 4, 2007 22:28
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	The return of red chips has become a hot issue in the stock market in China. Several years ago, some giant companies went public overseas. At present, those companies are preaparing to return to A-share market in China. CNPC(China National Petroleum Corporation) has submited his application to issue about 4 billion. In early days, China Mobile and China National Offshore Oil Corporation also expressed that they would return to China A-share market. The people's Bank of China has declared in a document that the government should develop the blue-chip market and attract those red chips to return. Well, some people argue that the return of red chips can help stabilize the A-Share market in China and enhance the stock market develop healthily. On the other hand, those investors in mainland can make profit from those red chips. However, others say that the A-share market would be affected if those red-chip companies go public. What is your opinion? The return of red chips is good or bad?

Jul 4, 2007 22:28

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

The return of red chips has become a hot issue in the stock market in China. Several years ago, some giant companies went public overseas. At present, those companies are preaparing to return to A-share market in China.

CNPC(China National Petroleum Corporation) has submited his application to issue about 4 billion. In early days, China Mobile and China National Offshore Oil Corporation also expressed that they would return to China A-share market.

The people's Bank of China has declared in a document that the government should develop the blue-chip market and attract those red chips to return.

Well, some people argue that the return of red chips can help stabilize the A-Share market in China and enhance the stock market develop healthily. On the other hand, those investors in mainland can make profit from those red chips. However, others say that the A-share market would be affected if those red-chip companies go public.

What is your opinion? The return of red chips is good or bad?

Jul 6, 2007 00:27

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: Offline

Personally, I regard this move of the government as stablizing the stock market. As everyone knows, the stock market in China has become crazy, sometimes rising rapidly, sometimes dropping sharply. To stablize the stock market, the government has tried several ways, including raising the stamp tax, decreasing or stopping imposing interest tax and issuing special treasury bonds. However, it seems that those measures did not work well.

The special treasury bonds has taken effect on the stock market. The shares in Shenzhen and Shanghai Stock Exchanges have dropped sharply. It seems that the government has made up their mind to break the bubble of the stock market. However, will this stablize the crazy stock market? Let's wait and see.

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