| Chinese stocks dropping!!! | |
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| Sep 12, 2007 00:27 |   |
 | Tuesday, the CPI of August came out. Compared with the same period last year, it rose 6.5%. The investors felt panic at this news. On the same day, Shanghai Composite Index dropped 4.51%, and the Shenzhen Component Index slumped 4.4%. What's more, Hong Kong was also affected by the slide in mainland. The Hang Seng index slumped 0.2 percent. It seems that investors care much about CPI, the marker of inflation. The continuing increase of CPI suggests that Chinese economy has been over-heated and the central government might adopt more server measures to control the excess liquidity. About 200 billion yuan of special treasury bonds will be sold to the market by the end of 2007. What do you think of the drop of Chinese shares? Will the stock market step into its downturn? |
| Sep 13, 2007 02:43 | #1 |
| In last two months, it seemed that people did not pay much attention to the CPI and the stock market was not influenced much. Why did shares slump sharply this time? I guess that the government's series of measures have gradually taken effect. These measures made investors believe that Chinese economy has become overheated and inflation migh occur. The excess liquidity does exist and needs to be sloved as soon as possible. Will the stock market step into its downturn? It is hard to answer this question. One thing I am sure is that the market will enter its adjustment period. The maarket is changeable. Who knows what will happen tomorrow? Perhaps, the bull market has not been finished. |
| Sep 14, 2007 03:00 | #2 |
| Yes, the bull market has not been finished. The shares rebounced again. By the way, I do not think that interest increase can ease the excess liquidity and inflation effectly. Other measures should be taken into consideration. |
| Sep 19, 2007 21:01 | #3 |
| It's said that it will rise again in the following two days! |
| Sep 25, 2007 02:01 | #4 |
| Stop worrying about short term prices as there will always be falls as wella s rises. If you invest in this you will get your fingers burnt. Invest for the long term, create wealth instaed of trying to gamble. leave speculation and borrowing to buy shares to the experienced players. |
| Sep 26, 2007 17:37 | #5 |
| Quote: "Stop worrying about short term prices as there will always be falls as wella s rises. If you invest in this you will get your fingers burnt. Invest for the long term, create wealth instaed of trying to gamble. leave speculation and borrowing to buy shares to the experienced players." Wise choice. Markets are not stable, you can play on it but if you do, you have to accept the fact that you may lose all what you invested on it. There is no easy money in this field. Choose wisely and to not panic at the sight of the shortest fall. If you choose to make an investment consider the future potential of the company you are investing in... Watching it go up and down everyday will just make you feel sick. |
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