Chinese shares went down sharply

Chinese shares went down sharply
Jan 29, 2008 02:11
ICEBERG Points: Join Date: Sep 10, 2007 Status: offline	During recent 10 trading days, Chinese stock market has experienced its up-and-down. In total, about 6.37 trillion yuan has lost. Shanghai Composite Index has gone down 1078.61 points. Yesterday, Shanghai's composite index dropped 7.2 per cent to 4,419.29, leaving it 28 per cent below an all-time high struck in October last year. On the other hand, those big companies also have lost severely. China Petroleum plunged down about 8 percent. Such as Datang International Power, Air China, China Petroleum, and China COSCO, the shipping group fell the maximum daily limit. In recent days, heavy snow in the east of China transport and power supplies. Some people analyse that this frightens those investors and casued drastic drop in Chinese stock market. What do you think? Are there any other reasons? A couple of days ago, some analysts said that Chinese stock market would keep its momentum this year. At least, the bull market will be last for a long time. Why does it fall unexpectedly?

Jan 29, 2008 02:11

ICEBERG
Points:
Join Date: Sep 10, 2007
Status: offline

During recent 10 trading days, Chinese stock market has experienced its up-and-down. In total, about 6.37 trillion yuan has lost. Shanghai Composite Index has gone down 1078.61 points. Yesterday, Shanghai's composite index dropped 7.2 per cent to 4,419.29, leaving it 28 per cent below an all-time high struck in October last year.

On the other hand, those big companies also have lost severely. China Petroleum plunged down about 8 percent. Such as Datang International Power, Air China, China Petroleum, and China COSCO, the shipping group fell the maximum daily limit.

In recent days, heavy snow in the east of China transport and power supplies. Some people analyse that this frightens those investors and casued drastic drop in Chinese stock market. What do you think? Are there any other reasons? A couple of days ago, some analysts said that Chinese stock market would keep its momentum this year. At least, the bull market will be last for a long time. Why does it fall unexpectedly?

Jan 29, 2008 09:13

MARRIE
Points:
Join Date: Jan 7, 2008
Status: Offline

-- central bank tightens over-heated economy (as we can see from high inflation reflected comsumer price index) via increasing banks reserves.

-- did you see this msg dated today " The blue-chip Hang Seng Index (hongkong) rebounded 586.49 points, or 2.44 percent, to open at 24,640.1 following Wall Street's overnight rally and shortly jumped to intra-day peak 24,736.8 during the morning session."

part of cash is drifting from Shanghai to Hongkong, this is china mkt legacy.

Jan 29, 2008 17:28	#2
WCTMAN Points: Join Date: Dec 17, 2005 Status: Offline	The market rises and falls sharply because large numbers of players with more money than brains are playing the game.

Jan 29, 2008 19:27	#3
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	I would tend to agree with that statement in regards to the U. S. stock markets also.

Jan 29, 2008 20:03	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Quote:" The market rises and falls sharply because large numbers of players with more money than brains are playing the game." WCTMAN, do you mean that they just burn their money in the stock market? No one wants to lose money in the market. My explanation is that they are too smart so that they need to suffer for their smartness.

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