The slump in Chinese stock market is due to the US economy slidedown?

The slump in Chinese stock market is due to the US economy slidedown?
Apr 1, 2008 02:39
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	So far, the Shanghai Composite Index has slumped 4.13 percent and Shenzhen Component Index down 6.33 percent. The news reports that about 90 percent investors hope the government can do something to save the market, for example, cutting the stamp tax on stocks. However, the government doesn't seem to take any measure. Some analysts even claim that the stock market could go its downturn if the government doesn't take measures. For the cause of the slump in the stock market, the Chicago Tribune claims that it is US economy that puts damper on the stock boom in China. What do you think of it? Except this reason, are there any other factors? The link to U.S. economy puts damper on the stock boom in China: http://www.chicagotribune.com/business/yourmoney/sns-yourmoney-0330china,0,220062.story

Apr 1, 2008 02:39

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

So far, the Shanghai Composite Index has slumped 4.13 percent and Shenzhen Component Index down 6.33 percent. The news reports that about 90 percent investors hope the government can do something to save the market, for example, cutting the stamp tax on stocks. However, the government doesn't seem to take any measure. Some analysts even claim that the stock market could go its downturn if the government doesn't take measures.

For the cause of the slump in the stock market, the Chicago Tribune claims that it is US economy that puts damper on the stock boom in China. What do you think of it? Except this reason, are there any other factors?

The link to U.S. economy puts damper on the stock boom in China:
http://www.chicagotribune.com/business/yourmoney/sns-yourmoney-0330china,0,220062.story

Apr 6, 2008 21:39

JIMMYB
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Join Date: Feb 7, 2007
Status: Offline

No doubt! The slidedown in US economy has had great impact over the world economies. However, that is external cause. The Chinese stock market itself is in bubble. Without the external cause, the bubble will burst one day. Sadly, many analysts still think that there is no bubble in Chinese stock market. Personally, I think that China should be thankful to US. The slump has revealed some problems in the stock market. To ensure the market develop healthly, these problems should be delt with carefully.

Apr 11, 2008 09:08	#2
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	Yes Jimmy, I am with you. Though I would say that China is lucky that the underlying economuy is very strong, so we should expect a recovery from the current prices slump. In the long run, stock markets will deliver 'reasonable profits' to investors. there is absolutely no reason for the government to interfere provided that it is working honestly.

Apr 13, 2008 22:51	#3
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Thanks, Paul. But according to a report, some so called experts predict that China will intervene in the stock market if the stocks continue to slump because they won't the slump spoils the Olympic Games. I don't know if China will do something considering of the Olympic Games.

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