Why do they sell Chinese shares?

Why do they sell Chinese shares?
Nov 30, 2007 02:14
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	In recent days, many big shot investors and international investment corporations have started to sell their shareholdings of some Chinese enterprises and companies. On Nov. 28th, one subsidiary company of Temasek sold its shareholdings of CCB (China Construction Bank) worthing about 255 million dollars. On Nov. 27th, Temasek decreased its shareholdings in BOC about one billion dollars. Before these two actions, they also decreased its shareholding in COSCO ( China Ocean Shipping (Group) Company) to 5.72 percent. They explained that to decrease their shareholdings in Chinese banks and cpmpany is one part of their portfolio management. In earlier days, Buffet had decreased his shareholding in PetrolChina seven times. Li Jiacheng also adopted the same way as Buffet. He had sold shares of ChinaSouthernAir seven times. With their decrease in Chinese companies' shares, the stock market is fluctuating rapidly. It is said that Hang seng Index has dropped 12.7 percent till Nov. 27th. Those international investors and investment companies have had great influence over Chinese stock market no matter they were wrong or right ( it is hard to understand their motives.) Why do they sell Chinese shares? Are they lack of confidence toward Chinese stock market? What do you think of their motives and actions?

Nov 30, 2007 02:14

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

In recent days, many big shot investors and international investment corporations have started to sell their shareholdings of some Chinese enterprises and companies. On Nov. 28th, one subsidiary company of Temasek sold its shareholdings of CCB (China Construction Bank) worthing about 255 million dollars. On Nov. 27th, Temasek decreased its shareholdings in BOC about one billion dollars. Before these two actions, they also decreased its shareholding in COSCO ( China Ocean Shipping (Group) Company) to 5.72 percent. They explained that to decrease their shareholdings in Chinese banks and cpmpany is one part of their portfolio management.

In earlier days, Buffet had decreased his shareholding in PetrolChina seven times. Li Jiacheng also adopted the same way as Buffet. He had sold shares of ChinaSouthernAir seven times.

With their decrease in Chinese companies' shares, the stock market is fluctuating rapidly. It is said that Hang seng Index has dropped 12.7 percent till Nov. 27th. Those international investors and investment companies have had great influence over Chinese stock market no matter they were wrong or right ( it is hard to understand their motives.)

Why do they sell Chinese shares? Are they lack of confidence toward Chinese stock market? What do you think of their motives and actions?

Nov 30, 2007 02:36	#1
WCTMAN Points: Join Date: Dec 17, 2005 Status: Offline	These individuals and groups that you mentioned are professional ( implying very experienced ) fund managers and / or stock traders. They probably bought low and sold high. So, they took their profit and re-invested elsewhere. Maybe they put the money back into the China Stock Market in other companies, maybe not. End of story.

Dec 3, 2007 09:15

APAULT
Points:
Join Date: Mar 11, 2006
Status: Offline

Yes, WCTMAN has it. I know I have responded to your Buffet thread, Jimmy... I wonder if you are driiving at a particular point? I don't think they are running away because they think China is failing. They are not cheating China by taking profits and leaving China to suffer. Overall China benefits from the market approach, as do the individual countries which are being invested in.

China has an increasing portfolio of investments overseas. I hope for China's sake that the managers wil behave like their foreign counterparts - they must look for what they see as the best opportunities and re-adjust their portfolios accordingly.

Dec 11, 2007 21:03

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

Quote: Jimmy... I wonder if you are driiving at a particular point? I don't think they are running away because they think China is failing. They are not cheating China by taking profits and leaving China to suffer. Overall China benefits from the market approach, as do the individual countries which are being invested in.

Well, Paul. They might re-adjust their portfolios by selling Chinese shares. However, I still think that there are some other reasons that force them to do so. The mainland and Hong Kong stock market recently is waving. If those investors feel worried, that is very normal. Confronted with inflation risk and instability in stock market, those investors have their reasons to quit.

Post a Reply to: Why do they sell Chinese shares?