China’s stock market has no bubble?

China’s stock market has no bubble?
Apr 16, 2008 23:07
gueststock	A survey says that about 70 percent investors believed that there was a bubble in the China’s stock market and it was close to burst, which was in accordance with many foreign people’s views. However, Jake Lynch, the chief representative of Macquarie Capital Securities Shanghai, held a different view that China’s A share market may not reach its bottom but we can’t say that there is a bubble that is bursting. If there is no bubble in the stock market, why did it slump seriously? Was it all because of US subprime crisis’ adverse effects? Here is the link of Jake Lynch’ article: http://www.ftchinese.com/sc/story_english.jsp?id=001018550

Apr 16, 2008 23:07

gueststock

A survey says that about 70 percent investors believed that there was a bubble in the China’s stock market and it was close to burst, which was in accordance with many foreign people’s views. However, Jake Lynch, the chief representative of Macquarie Capital Securities Shanghai, held a different view that China’s A share market may not reach its bottom but we can’t say that there is a bubble that is bursting. If there is no bubble in the stock market, why did it slump seriously? Was it all because of US subprime crisis’ adverse effects?

Here is the link of Jake Lynch’ article: http://www.ftchinese.com/sc/story_english.jsp?id=001018550

Apr 18, 2008 04:02

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

" If there is no bubble in the stock market, why did it slump seriously? "

Good retort, Gueststock. Looking at back at 2006, you could gain 60 to 70 percent return. However, the profit margin during this year has been shrunk too much. Some predict that it is about 30 to 40 percent. No wonder those investors require the government to help the stock market. If there was no bubble, why did the profit margin shrink so sharply?

Apr 18, 2008 11:04	#2
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	My reaction would be to believe what the 70% of investors believe rather than Jake Lynch. He has an interest to protect.

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